GOLD

By John M. Lucas

World gold production declined in 1994. Commercial-grade refined gold came from remainder was derived from base metal and
The Republic of South Africa remained the about 2 dozen producers. A few dozen other precious metal ores and from placer
world's largest gold producing nation, followed, companies, out of several thousand companies deposits. By comparison, similar data
despite a slight decline in production, by the and artisans, dominated the fabrication of gold assembled for 1980 indicated that gold ores
United States, which has been the second into useful products. Nearly all jewelry provided 63% of the total gold produced and
largest producer since 1991 when its manufacturing was centered in the New York, the remainder, 37%, was derived from base
production, for the first time in nearly five NY, and Providence, RI, areas. Estimated uses metal and other precious metal ores and placers.
decades, surpassed that of the former Soviet in 1994 were as follows: jewelry and arts, In both years, 1980 and 1994, the contribution
Union. Nevada, followed by California, 70%; industrial (mainly electronics), 23%; and from placer mines amounted to less than 2% of
continued to be the dominant gold-producing dental, 7%. the total gold produced.
States, where combined output for 1994 The Engelhard Industries/London daily price Alaska.—Gold developments in Alaska
accounted for nearly 75% of the U.S. total. of gold ranged from a low of about $370 per during 1994 were summarized in a report on
Though most domestic gold mines were surface troy ounce on April 22, to a high of nearly $398 Alaskan mining activity prepared by the Alaska
or open pit operations, conversion to on September 28. The average for the year was State Division of Geology and Geophysical
underground methods had begun to accelerate about $385. The previous year's prices ranged Surveys (DGGS),2 in cooperation with the
as more near-surface deposits reached depletion. from about $327 to $407 and averaged about Alaska Department of Commerce and Economic
Some of the deeper deposits, accessible only by $36l. Development. According to the DGGS, there
underground methods, contain higher grade Identified world gold resources at yearend were approximately 185 mechanized placer
sulfide ores which require more extensive 1994 were estimated by the U.S. Geological mines in operation during the year compared
preparation than ores encountered in most near- Survey at 75,000 tons, of which 15% to 20% with 196 during 1993, and for the first time in
surface operations. Although most of the was byproduct resources. The world reserve 15 years, all of Alaska's gold production was
Nation's gold mines were in Western States, a base was estimated by the U.S. Bureau of Mines derived exclusively from placer mines.
few continued to operate in States east of the (USBM) at 60,000 tons and reserves at 44,000 According to the DGGS, the 10 largest
Mississippi River. Gold also was produced at a tons. The Republic of South Africa had about Alaskan gold mines accounted for 58% of 1994
dozen or more large placer mines, nearly all in one-half of the resources and reserve base and production. The State reported that Silverado
Alaska, and numerous small placer mines, 41% of the reserves. The United States had Mines Ltd. recovered a 41.3 ounce (1,285
mostly in Alaska and Western States. A small about 12% of world resources, 9% of the gram) nugget at its underground placer
amount of domestic gold also was produced as reserve base, and 11% of the reserves. operations at the Nolan Mine; the nugget was
a byproduct of processing the ores of base Of an estimated 116,000 tons of gold mined unofficially determined to be the 10th largest
metals, chiefly copper. Twenty-five mines in historical times through 1994, about 15% is placer gold nugget recovered in Alaskan mining
yielded 80% of the gold produced. The value of believed to have been lost, used in dissipative history.
U.S. gold mine production in 1994 was more industrial uses, or otherwise unrecoverable or Gold exploration and the development and
than $4 billion. unaccounted for. Of the remaining 99,000 tons, permitting of new gold mines continued to
Domestic gold exploration activity, which an estimated 35,000 tons are official stocks held increase in Alaska. Echo Bay Mines Ltd.
generally peaked during the late 1980's, by central banks, and about 64,000 tons are continued exploration and development of the
continued to decline, as mining companies privately held as coin, bullion, and jewelry. A-J Mine on the outskirts of Juneau and at its
pursued opportunities in other nations. In Kensington joint-venture project 115 kilometers
several Latin American nations, for example, Production (72 miles) north of Juneau. Amax Gold Inc.
favorable geology, combined with recently gained Federal permit approval for its Fort
liberalized mining regulations attracted an Domestic mine production data for gold are Knox Project 24 kilometers (15 miles) northeast
influx of United States and other foreign gold developed by the USBM from two separate, of Fairbanks. On Ester Dome 13 kilometers (8
exploration and development spending. Recent voluntary surveys of U.S. operations. One of miles) northeast of Fairbanks, La Teko
overseas exploration interest and spending by these surveys is the lode-mine production Resources Ltd. continued exploration of its
U.S. firms also was directed toward various survey of copper, gold, lead, silver, and zinc True North property.
western Pacific regions and several areas of the mines. Of the lode gold producers in operation California.—California's largest gold mine,
former Soviet Union. to which a survey request was sent 206 the McLaughlin Mine of Homestake Mining
Conversion of old gold scrap to refined gold responded, representing 98% of the total gold Co., processed oxide and sulfide ore mined by
provided about 74 metric tons(4.7 million troy shown in tables 1 and 2. The individual open pit methods to recover nearly 7.8 tons
ounces1) of metal to the market, a quantity company production and performance data in (250,453 ounces) of gold during 1994. The
equivalent to nearly all domestic gold this report were derived from published sources State's second-largest gold mine, Santa Fe
consumption. The balance of secondary such as company annual reports. Pacific Gold Corp.'s Mesquite Mine, produced
production, 73 tons, was from prompt industrial Of the total gold produced during 1994, 93% 6.5 tons (207,508 ounces) of gold from open pit
scrap, partly toll refined. was extracted from gold ore while the operations near Brawley in Imperial County. In

1
eastern Imperial County, Glamis Gold Ltd. Ltd. continued to seek permits for its New the south near Valmy. Both operations are open
produced gold by heap leaching at its Picacho World project near Cooke City. Plans for the pits where gold is recovered by milling and
Mine and conducted further exploration at its controversial gold, copper, and silver project heap leaching, respectively. Nearby, FirstMiss
Imperial Project. Glamis, through its wholly north of Yellowstone National Park call for Gold Inc. produced nearly 7.6 tons (243,826
owned Rand Mining Co., also produced gold at underground mining and ore processing without ounces) of gold at its Getchell Mine during the
its Baltic and Yellow Aster Mines near the use of heap leaching or cyanide recovery fiscal year ending in midyear. Other gold mines
Randsburg in Kern County. Other mines methods. in Humboldt County include the
producing gold in Imperial County during the Nevada.—Nevada maintained its long- Crowfoot/Lewis Mine, Marigold Mine, Pinson
year included the American Girl Mine and standing position as the Nation's dominant gold- Mine, and Sleeper Mine.
Cactus Mine. producing State. Thirteen of the Nation's top 25 South of and parallel to the Carlin Trend, the
In eastern San Bernardino County near the gold producing mines during 1994 were in the Battle Mountain/Eureka Trend runs from
Nevada/California State line, Viceroy Gold Silver State. southeastern Humboldt County southeast
Corp. produced an estimated 5,200 kilograms Barrick Gold Corp., which for the first time through Eureka in Eureka County. Gold
(168,000 ounces) of gold at its new Castle became the Nation's largest gold mining mining operations along this trend include the
Mountain Mine. company, recovered 57.5 tons (1.85 million Battle Mountain Complex of Battle Mountain
In the State's Mother Lode country, Sonora ounces) of gold at its Betze-Post Mine in Gold Co. in Lander County, the McCoy/ Cove
Mining Corp. completed mining operations at Eureka County. Nearby in Elko County, Barrick gold and silver property of Echo Bay Mines
its Jamestown gold mine at Jamestown in continued development of its Meikle Mine, a Ltd., the Cortez Gold Mine Joint Venture's
Tuolumne County. In Calaveras County, FMC new underground operation scheduled to begin Cortez Mine, Atlas Corp.'s Gold Bar Mine,
Gold Co. closed its Royal Mountain King Mine production during the second half of 1996. placed under temporary shutdown and standby
near Copperopolis. To the north, in Nevada Barrick's operations on the Carlin Trend are in mid-1994, and Alta Gold Co.'s Easy Junior
County, Siskon Gold Corp. poured its first bar developed within a 2,800 hectare (7,000 acre) Mine in White Pine County. Considerable
of gold at its new San Juan Mine, an land holding designated collectively as the exploration activity continued to be focused on
underground placer operation located near Goldstrike Property. In late 1994, Barrick the Pipeline, Ruby Hill, and various other
Nevada City. Siskon also conducted acquired full ownership of the Bullfrog Mine in recent discoveries along the Battle
exploration and permitting operations at its Big Nye County. During the year Bullfrog produced Mountain/Eureka Trend in Lander and Eureka
Horn Property in Los Angeles County. just over 9,300 kilograms (300,000 ounces) of Counties.
In Lassen County, Lassen Gold Mining Inc., gold at the mine site near Beatty. At Round Mountain, in north-central Nye
a subsidiary of Amax Gold Inc., completed a Nearby, both geographically and in terms of County, Round Mountain Gold Co. produced
successful transition from milling to an all heap- production, Newmont Gold Co. (NGC) about 13.2 tons (423,504 ounces) of gold
leaching operation at its Hayden Hill Mine. produced 48.4 tons (1,555,300 ounces) of gold during the year, an increase of 13% over the
Hayden Hill's production during 1994 was from its operations generally centered in Eureka previous year. All of the increase came from a
nearly 2,050 kilograms (65,785 ounces). and Elko Counties. NGC's widespread new "dedicated" (permanent) heap-leach pad.
Montana.—According to an annual review of operations along the Carlin Trend are divided South Dakota.—Homestake Mining
mining and mineral developments in the State, geographically into three management areas: the Company's nearly 12-decade-old Homestake
prepared by the Montana Bureau of Mines and North Area, which includes the Post, Carlin, Mine was again the Nation's largest
Geology (MBMG),3 exploration activity, largely and Genesis Mines and mills No. 1 and No. 4; underground gold mine, the largest gold-
focused on gold, doubled in 1994. Of the the South Area, which includes the Gold producing mine in South Dakota, and the sixth
mines producing gold in Montana during the Quarry Mine and mills No. 2 and No. 5; and the largest gold-producing mine in the country.
year, three were owned and operated by Rain Area, which includes the Rain Mine and During the year the mine at Lead, a nearly 2.5
Pegasus Gold Inc. They were: the Beal mill No. 3. Of the tonnage mined, mines in the kilometer (8,000 foot)-deep operation with
Mountain Mine in Silver Bow County, the North Area accounted for 50.7% of the total associated surface mining, recovered about 12.3
Montana Tunnels Mine, a gold, lead, silver, and while 48.1% and 1.2% of the remainder was tons (393,934 ounces) of gold at a reported cash
zinc mine in Jefferson County; and the Zortman extracted from deposits in the South Area and production cost of $292 per ounce.
Mine in Phillips County, the State's largest gold the Rain Area, respectively. Of the total gold Performance for 1994 was impacted by a cave-
mine in 1994. production reported for the year, 58% was in and a 100-year record rainstorm which also
In midyear, unstable ground conditions led to derived by milling and the remainder, 42%, was affected the performance of other Black Hills
the suspension of milling operations at Placer recovered by heap leaching. During the year gold operations.
Dome's wholly owned Golden Sunlight Mine NGC completed construction of a new At Wharf Resources Ltd.'s Wharf Mine, west
near Whitehall in Jefferson County. Remedial refractory ore treatment plant north of Carlin. of Lead, production amounted to a record of
measures and repairs occupied most of the time Construction was also underway at yearend on nearly 3,300 kilograms (105,282 ounces).
remaining in 1994; full production was resumed an $ll million bioleach demonstration project Nearby, the company's 60%-held Golden
in early February 1995. designed to process lower grade refractory ores. Reward Mine produced about 1,650 kilograms
In Park County, TVX Gold Inc. continued Northwest of Elko, in Elko County, (52,556 ounces) of gold kilogram.
production at its underground Mineral Hill Independence Mining Co. and FMC Gold Co. About 74 kilograms (2,400 ounces) of
Mine near Jardine and exploration at its nearby produced about 10.2 tons (326,667 ounces) of residual gold were recovered by releaching
Crevice Mountain project. Construction of a gold at its Jerritt Canyon Mine. To the west, in previously leached ore at Dakota Gold Mining
4.3 kilometers (2.7 mile) tunnel connecting the Humboldt County, Santa Fe Pacific Gold Corp. Inc.'s Gilt Edge Mine near Deadwood. The
two sites was begun during the year. Also in (SFPG) recovered 15.6 tons (501,891 ounces) company continued exploration and permitting
Park County, about 80 kilometers (50 miles) of gold at its Twin Creeks Mine and about 7.1 at its Anchor Hill oxide deposit on the Gilt
east of Mineral Hill, Crown Butte Resources tons (226,911 ounces) at its Lone Tree Mine to Edge property. Some residual gold also was

2
recovered at Barrick Gold's, formerly Lac tons (14 million ounces) in 1993 to 78 tons (2.5 Department of Energy, Mines and Resources.5
Minerals Ltd.'s, Richmond Hill Mine where million ounces) in 1994. Gold Fields noted that Canada retained its position as the world's
mining of ore ceased in mid-1992. supplies of old scrap to market during 1994 rose fourth largest gold producer. In 1994, gold was
In the November elections the electorate of to the highest level ever recorded in its annual produced at about 50 primary gold mines; these
Lawrence County, host county for the surveys which record the contribution of scrap accounted for 91% of the total. Base metal
aforementioned mines, defeated a ballot to the supply side as far back as 1980. mines and placer mines accounted for 6.5% and
initiative to prohibit the issuance of new mining On the demand side of the equation, GFMS 2.5%, respectively, of the remainder. Canada's
permits, or amendments to existing permits, for reported that the overall fabrication of gold into principal gold-producing regions, in descending
surface metal mining projects within designated end products increased slightly from that of the order of output, were Ontario, Quebec, the
areas of the County. previous year but failed to match the record Northern Territory, and British Columbia. Gold
Utah.—Kennecott Corp.'s Bingham Canyon demand level set in 1992. Gold used in the was also produced in Alberta, Manitoba, New
Mine, produced gold as a byproduct of its fabrication of jewelry products globaly rose Brunswick, and the Yukon.
copper mining operations near Salt Lake City. more than 2% to 2,576 tons (83 million ounces) Latin America.—Interest in gold exploration
Long ranked as one of the country's leading and gold consumed in electronic products rose opportunities, new mine development activity,
gold-producing mines, Bingham Canyon was more than 5% to 192 tons (about 6 million and production in many Latin American nations
the fourth largest gold producer during 1994. ounces). Worldwide the use of gold in other continued to increase during the year. Much of
Kennecott also operated the nearby Barney's demand sectors such as dentistry, medals and the activity was focused on Chile, Mexico,
Canyon Mine, an open pit and heap-leaching imitation coins, and other industrial and Peru, and to a lesser extent the Guyanan Shield
operation. decorative applications increased slightly. The area of Guyana and Venezuela. There also
Barrick Gold Corp.'s open pit Mercur Mine in use of gold in the minting of official coins appeared to be increasing interest in the
Tooele County, Utah's largest primary gold declined 41% from the 1993 level. GFMS's prospects for expanded gold production in other
producer, recovered about 3,360 kilograms data on various facets of the gold investment nations such as Argentina and the nations of
(108,107 ounces) of gold in 1994. Mercur sector indicated that gold supplies to the market Central America and the Caribbean, especially
presently has a 5-year life remaining and is from futures market vehicles, as well as gold the Republic of Cuba.
scheduled to begin closure in 3 years following calculated to have returned to the market Gold production in Brazil, Latin America's
depletion of all open pit reserves and because of disinvestment, more than offset the largest gold-producing nation, continued to
reclamation of tailings from earlier mining. quantity of gold absorbed by gold loans and decline as easily worked surface and placer
USMX Inc. reported that its Goldstrike Mine gold bars held for investment and hoarding deposits are mined out by independent gold
in Washington County produced about 1,070 purposes. Bar hoarding registered a substantial miners or "garimpeiros." Yet to be reflected in
kilograms (34,486 ounces) of gold. Mining increase over quantities estimated to be held at Brazil's performance data is the trend toward
activities at the site were completed in late the end of 1993. rising gold production by the formal or
1994. Reclamation of the remaining mining Australia.—Australian gold production corporate sector.
disturbances and residual production from ore continued to expand and for the third New mines completing a first full year of
in place on the heaps is expected to extend consecutive year Australia retained its position production included Bolivia's Kori Kolo, Chile's
operations into late 1995. There was some gold as the world's third largest gold-producing Guanaco, Guyana's Omai, Mexico's Amelia and
exploration activity in the State during the year. nation. Of the 256 tons (8.2 million ounces) of Rio Yaqui, and Peru's Yanacocha. In
Most of the activity was centered around former gold produced in 1994, Western Australia, Venezuela's El Dorado region, Monarch
producing mines in the old Tintic Mining Queensland, and the Northern Territory Resources Ltd. began production in midyear at
District. accounted for about 76%, 13%, and 7%, its La Camorra Mine while in Panama,
respectively. Western Australia's production Greenstone Resources Ltd. began open pit
World Review was derived primarily from mines situated mining at its Santa Rosa Mine and the Eldorado
around and west of Kalgoorlie. Other Corp. Ltd. began production at its La Colorada
For the first time following 15 consecutive Australian gold-producing States, in descending Mine in Mexico.
years of growth, world mine production failed order of output, were New South Wales, Oceania.—Gold production in Papua New
to exceed that of the previous year. Increasing Victoria, Tasmania, and South Australia. Guinea declined for the second consecutive year
production from mines in developing Nations A number of gold mines were under reflecting to some extent the mining of lower
was more than offset by a sharp decline in development or expanding capacity and several grade ores at two of that nation's larger gold
production from the Republic of South Africa. new mines began production during the year. In mines, Placer Pacific Ltd.'s Porgera and Misima
According to its annual review of world gold Western Australia, for example, Great Central Mines. Conversely, higher grade ores
supply and demand, Gold Fields Mineral Mines NL began open pit production at its contributed to increased production at BHP Co.
Services Ltd. (GFMS)4 calculated that total Bronzewing Mine near Wiluna, and Gold Ltd.'s Ok Tedi copper-gold mine. Exploration
global supplies of gold in 1994 were balanced Mines of Australia Ltd. began underground was continued at a number of gold prospects
against total demand for gold at 3,319 tons (107 operations at its Youanmi Mine northeast of and in early 1995 the Government issued a
million ounces) compared with the previous Perth. Special Mining Lease to RTZ which opened the
year's total of 3,563 tons (about 115 million Canada.—Although Canada's gold way for construction of the Lihir Island project
ounces). There were several important production decreased for the third consecutive off the east coast of New Ireland. Production
developments in the individual components of year, new mines under development at yearend was also scheduled to begin in 1995 at Dome
the supply/demand equation in 1994. The most 1994 should result, in later years, in a gradual Resources Ltd.'s Tolukuma project north of Port
significant development was a dramatic decline recovery of production to levels seen prior to the Moresby.
in net official/central bank sales of gold to the decline, according to a review of Canadian gold In Indonesia, gold production increased
market; official sector sales declined from 445 developments prepared by the Canadian substantially. Freeport Indonesia Inc. recovered

3
 1
more than 24 tons (784,000 ounces) of Foreign corporate involvement in gold Ounce refers to troy ounce. One kilogram of gold
weighs 32.1507 troy ounces.
byproduct gold at its Grasberg/Ertsberg copper- exploration, development and mining activity in 2
Swainbank, R. C., and T. K. Bundtzen. Alaska's
gold mine in West Irian and PT Kelian the former Soviet Union continued to evolve Mineral Industry 1994: A Summary. AK Div. Geol.
Equatorial Mining recovered nearly 14 tons during the year, but at a much lower pace than and Geophys. Surv. Inf. Circ. 40, Mar. 1995, 11 pp.
(433,000 ounces) of gold at the Kelian Mine in previously anticipated. Numerous North 3
McCulloch, R. Annual Mining Review Mining
East Kalimantan. Several new Indonesian gold American, Australian, and European Eng., v. 47, No. 5, May 1995, pp. 440-441.
4
mines began production in 1994. Gold corporations continued to pursue joint-venture Murray, S. K., K. Crisp, P. Klapwijk, T. Sutton-
exploration activities continued to increase and opportunities in Kazakhstan, Kyrgyzstan, and Pratt, and others. Gold 1995. Gold Fields Mineral
several late-stage projects were being readied elsewhere throughout the former Soviet Union. Services Ltd. (London), May 1995, 64 pp.
5
for production in the near future. By late 1994, the Zarafshan-Newmont Joint Couturier, G. Gold. Advance Copy of Ch. from
Canadian Minerals Yearbook—1994. 21 pp.
Gold production in New Zealand was derived Venture had nearly completed the 6
World Gold, A Minerals Availability Appraisal.
from three large surface lode mines and several preproduction phase at its new gold recovery U.S. Bureau of Mines Special Pub. SP 24-94, 1994.
medium-sized placer mines. Underground project at the Muruntau Mine in Uzbekistan; 197 pp.
mining continued on Fiji's Island of Viti Levu. gold production began at a rate of 14 tons 7
Dobra, J. L., and P. R. Thomas. The U.S. Gold
Some gold exploration was conducted on (450,000 ounces) per year in mid-1995. Industry 1994. Nevada BuMines and Geol. Special
Espiritu Santo in the Republic of Vanuatu, on Pub. 18, 1995. 32 pp.
8
New Caledonia, and in the Solomon Islands. Outlook The Gold Institute. World Mine Production of
South Africa, Republic of.—During the 35 Gold 1993-97. May 1994. 9 pp.
years prior to 1994 gold production in South The course to be taken by the domestic gold
Africa, the world's largest gold-producing mining industry depends to a large extent upon OTHER SOURCES OF INFORMATION
nation, has ranged from a high of 1,000 tons the outcome of the current legislative debate in
(32 million ounces) in 1970 to low of 601 tons the Congress. The effect of revisions to the U.S. Bureau of Mines Publications
(19.2 million ounces) in 1991. In 1994, General Mining Law, which governs mining Gold. Sec. in Mineral Commodity Summaries,
however, problems linked to the beginning of a and exploration on Federal lands, and proposals annual.
new post-apartheid government, repeated labor to impose additional tax and regulatory burdens Precious Metals. Mineral Industry Surveys,
disruptions, escalating costs, and declining ore on mine production from both Federal and non- monthly.
grades combined to drive the production the Federal lands will largely determine the course Other Sources
lowest level since 1958 when only 549 tons of future domestic gold mining activity. If new American Metal Market, New York.
(17.6 million ounces) were produced. legislation places unacceptable burdens on Gold Technology, World Gold Council, New
The tonnage and grade of ore milled during producers and reduces the incentive to explore, York and Geneva, Switzerland, quarterly.
1994 by the nearly 3 dozen mines representing production could decline substantially as Engineering and Mining Journal, Chicago.
the membership of the Chamber of Mines of existing deposits are high-graded wherever Gold Bulletin, World Gold Council, New York
South Africa amounted to nearly 99 million possible, or reclassified as uneconomic, and and Geneva, Switzerland, quarterly.
metric tons bearing a gold grade of 5.40 grams producers, explorationists, and investors opt to Gold Notes & Quotes, World Gold Council,
per ton (0.158 ounce per short ton); this pursue opportunities in more hospitable New York and Geneva, Switzerland, monthly.
compares with 103 million tons bearing 5.56 environments elsewhere. Jewelers' Circular-Keystone, Radnor, PA.
grams per ton (0.162 ounce per short ton) What may be little understood and Mining Journal, London.
milled by Chamber members during the appreciated in the current debate is that modern Noble Metals. Time-Life Books Inc., New
previous year. metal mining has always been a high risk global York.
The six major corporate groups or "houses" pursuit driven by cyclical world market prices Platt's Metals Week, New York.
which dominate the South African gold mining and by evolving geologic theories and the Randol Mining Directory 1994-95, Randol Intl.
industry were as follows: The Anglo American accessibility to favorable geologic terrain. The Ltd., Golden, CO.
Corp. of South Africa Ltd. (AAC), Gold Fields nature of the exploration process, the ability to Russian Far East News, Alaska Center for
of South Africa Ltd., Gencor Ltd., pursue the development of favorable prospects International Business and American Russian
Johannesburg Consolidated Investment Co. once discovered, and the long lead times Center, Univ. of Alaska, Fairbanks, AK,
Ltd., Anglovaal Ltd., and Rand Mines Ltd. The generally required to effect a return on monthly.
two largest gold mines in terms of production investment are characteristics that must be taken The Metalsmiths. Time-Life Books Inc., New
during 1994 were the Freegold and Vaal Reefs, into account whenever the future of the industry York.
both owned by AAC. The two next largest is considered. The Mining Record, Englewood, CO.
mines were the Driefontein and Kloof, both The USBM released a comprehensive The Northern Miner, Toronto.
owned by Gold Fields. overview of the operation and economics of the
Russia and the Former U.S.S.R.—Of the gold mining industry worldwide.6 An
seven or more gold-producing independent overview of the economics and public policy
countries resulting from the dissolution of the issues affecting the domestic gold mining
U.S.S.R. in late 1991, Russia is by far the industry was published in early 1995.7 The
largest, both in terms of output and number of Gold Institute forecasts world gold production
operations as well as areal distribution. Much of to increase at a rate of about 1.6% annually
Russia's production derives from State-owned through 1997.8
enterprises and cooperatives, known as artels,
scattered throughout eastern Russia.

4
 TABLE 1
SALIENT GOLD STATISTICS 1/

1990 1991 1992 1993 1994

United States:
Mine production kilograms 294,000 294,000 330,000 331,000 326,000
Value thousands $3,640,000 $3,430,000 $3,660,000 $3,840,000 $4,040,000
Gold recovered by cyanidation:
Extracted in vats, tanks, and closed containers 2/ 136,000 160,000 178,000 177,000 169,000
Leached in open heaps or dumps 3/ 129,000 104,000 120,000 128,000 119,000
Refinery production:
Ores, concentrates and dore kilograms 225,000 225,000 284,000 243,000 241,000
Recycled materials (new and old scrap) do. 144,000 153,000 163,000 152,000 r/ 148,000
Imports for consumption:
Refined do. 64,800 147,000 141,000 130,000 96,400
Exports
Refined do. 141,000 174,000 257,000 658,000 334,000
Net deliveries from foreign stocks in
Federal Reserve Bank of New York do. 51,500 61,600 136,000 582,000 217,000
Stocks, Dec. 31:
Industry 4/ 37,100 39,400 36,700 34,400 r/ 32,700
Commodity Exchange (Comex) 5/ do. 50,900 49,900 46,500 78,500 49,100
Department of the Treasury 6/ metric tons 8,150 8,150 8,150 8,140 8,140
Volume of U.S. Gold Futures Trading 7/ do. 30,300 21,200 18,700 25,500 26,400
Department of the Treasury: 8/
American Eagle gold coin 9/ kilograms 17,400 13,700 11,100 21,800 NA
Other Numismatic gold coins do. 695 952 965 2,250 NA
Consumption in industry and the arts do. 118,000 114,000 110,000 91,400 r/ 76,100
Apparent demands, refined 10/ do. 244,000 307,000 357,000 363,000 294,000
Price: Average per troy ounce 11/ $384.93 $363.29 $344.97 $360.91 $385.41
Employment, mine and mill only 12/ 16,100 15,100 14,800 14,700 14,200
World:
Production, mine kilograms 2,180,000 2,190,000 2,290,000 r/ 2,310,000 r/ 2,290,000
Official bullion reserves 13/ metric tons 35,600 35,500 r/ 35,200 r/ 34,700 r/ 34,500
r/ Revised. NA Not available.
1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits.
2/ May include small quantities recovered by gravity methods.
3/ May include tailings, waste ore dumps and previously mined ore at some inactive mines.
4/ Unfabricated refined gold held by refiners, fabricators, dealers, and U.S. Department of Defense.
5/ Comex division of New York Mercantile Exchange.
6/ Includes gold in Exchange Stabilization Fund.
7 /Comex only.
8/ Sales to market fiscal year 1990; thereafter, bullion disbursements to U.S. Mint coin programs. Fiscal year begins Oct. 1, of year prior to year indicated.
9/ Sales program began Oct. 20, 1986.
10/ Defined as refinery production from primary materials + refinery production from old scrap + net bullion flow to market from foreign stocks at the New York Federal Reserve
Bank + net imports of bullion. Assumed to include gold held for investment purposes. Excludes gold contained in fabricated items, imported coins, and official monetary gold.
11/ Engelhard Industries quotation.
12/ Source: Mine Safety and Health Administration.
13/ Held by central banks and governments and international monetary organizations. Source: International Monetary Fund.
 TABLE 2
MINE PRODUCTION OF GOLD IN THE UNITED STATES, BY STATE 1/ 2/

(Kilograms)

State 1993 1994

Alaska 2,780 3/ 5,740 4/
Arizona 2,710 1,980
California 35,800 30,100
Colorado W 4,420
Montana 5/ 14,300 12,600
Nevada 211,000 214,000
New Mexico 995 W
South Dakota 19,200 W
Washington 7,110 7,410
Other States 6/ 37,300 50,100
Total 331,000 326,000
W Withheld to avoid disclosing company proprietary data; included in "Other States."
1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three
significant digits; may not add to totals shown.
2/ Beginning with calendar year 1994 the U.S. Bureau of Mines ceased collecting data on
placer mine production. Placer mine data from other sources is footnoted.
3/ This figure, reported to the U.S. Bureau of Mines, probably understates production.
Data collected by the State indicates 1993 production was 5,948 kilograms.
4/ Production data collected by the State. Data published in this table in prior years was
Bureau of Mines data only; State-sourced data was appended as a footnote.
5/ In addition to reported data shown in the table, placer production was estimated by the
State to have been as follows in kilograms: 1993--6; 1994--12.
6/ Includes for at least one of the years Idaho, Oregon, South Carolina, Utah, Wisconsin,
and withheld placer data from other states where available.
 TABLE 3
TWENTY-FIVE LEADING GOLD-PRODUCING MINES IN THE UNITED STATES IN 1994, IN ORDER OF OUTPUT

Rank Mine County and State Operator Source of gold

1 Goldstrike Eureka, NV Barrick Goldstrike Mines Inc. Gold ore.
2 Carlin Mines Complex do. Newmont Gold Co. Do.
3 Twin Creeks Humboldt, NV Santa Fe Pacific Gold Corp. Do.
4 Bingham Canyon Salt Lake, UT Kennecott-Utah Copper Corp. Copper ore.
5 Smokey Valley Common Operation Nye, NV Round Mountain Gold Corp. Gold ore.
6 Homestake Lawrence, SD Homestake Mining Co. Do.
7 Jerritt Canyon (Enfield Bell) Elko, NV Independence Mining Co. Inc. Do.
8 Bullfrog Nye, NV LAC Minerals Do.
9 McCoy and Cove Lander, NV Echo Bay Mining Co. Do.
10 McLaughlin Napa, CA Homestake Mining Co. Do.
11 Getchell Humboldt, NV FMG Inc. Do.
12 Mesquite Imperial, CA Santa Fe Pacific Gold Corp. Do.
13 Castle Mountain San Bernardino, CA Viceroy Gold Corp. Do.
14 Lone Tree Humboldt, NV Santa Fe Pacific Gold Corp. Do.
15 Cannon Chelan, WA Asamera Minerals (U.S.) Inc. Do.
16 Denton-Rawhide Mineral, NV Kennecott Rawhide Mining Co. Do.
17 Zortman-Landusky Phillips, MT Pegasus Gold Inc. Do.
18 Wharf Lawrence, SD Wharf Resources LTD Do.
19 Ridgeway Fairfield, SC Kennecott Ridgeway Mining Co. Do.
20 Florida Canyon Lander, NV Pegasus Gold Inc. Do.
21 Barney's Canyon Salt Lake, UT Kennecott Corp. Do.
22 Crofoot-Lewis Humboldt, NV Hycroft Resources & Development Corp. Do.
23 Mercur Tooele, UT Barrick Goldstrike Mines Inc. Do.
24 Yellow Aster Kern, CA Glamis Gold Inc. Do.
25 Bald Mountain White Pine, NV Placer Dome (U.S.) Inc. Do.
 TABLE 4
U.S. CONSUMPTION OF GOLD 1/ 2/, BY END-USE SECTOR

(Kilograms)

End use 1993 1994

Jewelry and the arts:
Karat gold 61,700 r/ 49,700
Fine gold for electroplating 373 r/ 369
Gold-filled and other 3,530 3,650
Total 65,600 r/ 53,700
Dental 6,170 5,430
Industrial:
Karat gold 1,100 96
Fine gold for electroplating 9,090 9,470
Gold-filled and other 9,470 7,450
Total 19,700 17,000
Small items for investment 3/ -- --
Grand total 91,400 r/ 76,100
r/ Revised.
1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines
to three significant digits; may not add to totals shown.
2/ Gold consumed in fabricated products only; does not include monetary bullion.
3/ Fabricated bars, medallions, coins, etc.
 TABLE 5
U.S. EXPORTS OF GOLD, BY COUNTRY 1/ 2/

Ores and concentrates 3/ Dore and precipitates Refined bullion Total Waste and scrap
Year and country Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value
(kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands)
1993 216 $1,880 67,500 $686,000 658,000 $7,610,000 726,000 $8,300,000 66,800 4/ $616,000

1994:
Argentina -- -- -- -- 285 3,480 285 3,480 -- --
Belgium -- -- -- -- -- -- -- -- 2,660 33,600
Brazil -- -- -- -- 255 3,120 255 3,120 -- --
Canada 414 3,390 15,500 120,000 2,900 33,200 18,800 156,000 33,600 270,000
China -- -- 9 115 636 8,000 645 8,120 -- --
France -- -- 30,300 377,000 -- -- 30,300 377,000 5,020 61,700
Germany -- -- 40 141 13,200 166,000 13,300 167,000 5,580 65,400
Hong Kong -- -- 628 7,870 64,700 795,000 65,300 803,000 2 13
Ireland -- -- -- -- 793 12,000 793 12,000 5 66
Italy -- -- 3 25 12 93 15 118 351 4,330
Japan -- -- 529 6,400 1,590 19,100 2,120 25,500 90 1,370
Korea, Republic of -- -- 185 2,310 2,070 25,400 2,260 27,700 1 7
Mexico -- -- 20 251 7,940 96,100 7,960 96,300 -- --
Peru -- -- -- -- 294 3,610 294 3,610 7 89
Singapore -- -- -- -- 1,500 18,200 1,500 18,200 60 568
Sweden -- -- -- -- -- -- -- -- 998 12,600
Switzerland -- -- 9,190 113,000 95,000 1,130,000 104,000 1,240,000 7,650 64,400
Taiwan -- -- -- -- 32,500 404,000 32,500 404,000 -- --
Turkey -- -- -- -- 429 5,250 429 5,250 -- --
United Arab Emirates -- -- -- -- 707 8,690 707 8,690 -- --
United Kingdom 36 360 4,140 49,700 109,000 1,330,000 113,000 1,380,000 20,200 229,000
Other 12 29 20 158 324 3,870 356 4,060 95 1,170
Total 462 3,780 60,600 677,000 334,000 4,060,000 395,000 4,740,000 76,300 745,000
1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown.
2/ Bullion also moves in both directions between U.S. markets and foreign stocks on deposit in the Federal Reserve Bank. Monetary gold excluded.
3/ Includes base metal ores, concentrates, and matte destined for refining.
4/ Verification of Bureau of the Census export quantities was not possible for some months of 1993. Quantities shown are rounded estimates derived by dividing dollar values, which are believed to
be accurate, by an estimated value for waste and scrap of $9,400/kg.

Source: Bureau of the Census.

 TABLE 6
U.S. IMPORTS FOR CONSUMPTION OF GOLD, BY COUNTRY 1/ 2/

Ores and concentrates 3/ Dore and precipitates Refined bullion Total Waste and scrap
Year and country Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value
(kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands)
1993 1,240 $13,500 12,500 $135,000 130,000 $1,500,000 144,000 $1,640,000 25,500 $65,400

1994:
Argentina -- -- -- -- 117 1,560 117 1,560 1,060 15,700
Bolivia -- -- -- -- 711 8,600 711 8,600 14 101
Brazil -- -- -- -- 3,370 42,000 3,370 42,000 6 42
Canada 3 35 11,400 132,000 73,900 913,000 85,300 1,040,000 2,740 21,600
Chile -- -- 283 3,500 7,300 90,600 7,590 94,100 13 143
Colombia -- -- 67 494 1,900 20,300 1,960 20,800 14 176
Costa Rica -- -- 326 4,080 3 42 329 4,120 487 4,060
Dominican Republic -- -- -- -- 43 455 43 455 3,410 21,500
Ecuador -- -- 104 1,260 2,840 29,100 2,940 30,300 55 557
Guyana -- -- -- -- 174 2,180 174 2,180 636 7,490
Malaysia -- -- -- -- -- -- -- -- 1,350 2,150
Mexico 2,240 27,300 2,120 25,900 1,080 12,800 5,450 66,000 2,080 11,800
Panama -- -- 549 3,670 224 2,080 773 5,750 211 604
Peru -- -- 168 2,060 476 5,820 644 7,880 7,410 8,120
Philippines -- -- -- -- -- -- -- -- 736 336
Suriname -- -- -- -- 59 702 59 702 321 3,880
Switzerland -- -- -- -- 2,220 28,500 2,220 28,500 9 59
Trinidad and Tobago -- -- -- -- 17 199 17 199 538 7,330
United Kingdom 1 8 -- -- 1,140 15,600 1,140 15,600 14 152
Uruguay -- -- -- -- 201 2,480 201 2,480 -- --
Venezuela -- -- 1 12 223 2,300 224 2,310 3 38
Other -- -- 113 1,160 319 3,250 432 4,400 687 5,330
Total 2,250 27,300 15,100 174,000 96,400 1,180,000 114,000 1,380,000 21,800 111,000
1/ Previously published and 1994 data are rounded by the U.S. Bureau of Mines to three significant digits; may not add to totals shown.
2/ Bullion also moves in both directions between U.S. markets and foreign stocks on deposit in the Federal Reserve Bank. Monetary gold excluded.
3/ Includes base metal ores, concentrates, and matte destined for refining.

Source: Bureau of the Census.

 GOLD: WORLD MINE PRODUCTION BY COUNTRY 1/ 2/

(Kilograms)

Country 1990 1991 1992 1993 1994 e/

Argentina 1,400 r/ 1,730 r/ 1,110 r/ 937 r/ 1,000
Armenia e/ XX XX 500 r/ 500 500
Australia 244,000 234,000 243,000 e/ 247,000 256,000 3/
Belize e/ 1 3/ 5 5 2 2
Bolivia 5,200 3,500 4,690 10,400 r/ 12,800 3/
Botswana 46 20 165 192 200
Brazil 4/ 102,000 89,600 r/ 85,900 74,200 r/ 76,000
Burkina Faso e/ 7,800 5,600 5,400 5,000 6,000
Burundi e/ 9 3/ 25 32 20 20
Cameroon e/ 10 3/ 10 10 10 10
Canada 169,000 177,000 161,000 153,000 146,000 3/
Central African Republic 241 176 155 150 e/ 150
Chile 27,500 28,900 33,800 33,600 r/ 38,600 3/
China e/ 100,000 120,000 140,000 160,000 160,000
Colombia 29,400 34,800 32,100 27,500 r/ 27,500 3/
Congo 7 12 5 5 e/ 5
Costa Rica e/ 460 550 550 600 650
Cote d'Ivoire 20 1,100 1,500 1,500 e/ 1,500
Dominican Republic 4,350 3,160 2,380 1,500 r/ e/ 1,300
Ecuador 5/ 10,700 12,200 1,310 r/ 940 r/ 1,500 3/
Ethiopia 6/ 848 3,040 2,220 3,390 r/ 3,300
Fiji 4,120 2,740 r/ 3,700 r/ 3,780 3,440 3/
Finland 2,810 2,200 1,600 1,390 r/ 1,380 3/
France 5,430 r/ 4,610 r/ 3,060 r/ 2,160 r/ e/ 3,800
French Guiana (Guyane) 870 1,420 2,140 r/ 2,500 r/ 2,500
Gabon 5/ 80 e/ 50 70 120 72
Georgia e/ XX XX 1,500 r/ 1,000 r/ 600
Germany:
Eastern states 1,750 XX XX XX XX
Western states e/ 18 XX XX XX XX
Total 1,770 10 e/ -- -- --
Ghana 16,800 26,300 31,000 39,200 44,500 3/
Guatemala 62 31 32 30 e/ 30
Guinea 7/ 6,340 4,450 2,110 2,100 e/ 2,100
Guyana e/ 1,500 1,840 2,480 9,610 11,800 3/
Honduras 156 180 163 111 r/ 106 3/
Hungary e/ 600 500 500 500 200
India 8/ 1,980 1,970 1,760 r/ 2,000 r/ 2,150
Indonesia 9/ 11,200 16,900 38,000 42,100 45,000
Iran e/ 500 500 500 417 3/ 723 3/
Japan 7,300 8,300 8,890 9,350 r/ 9,550 3/
Kazakhstan e/ XX XX 24,000 25,000 26,000
Kenya e/ 25 3/ 20 20 20 20
Korea, North e/ 5,000 5,000 5,000 5,000 5,000
Korea, Republic of 8/ 20,800 20,800 23,300 25,000 e/ 25,000
Kyrgyzstan e/ XX XX 1,200 r/ 1,500 r/ 2,000
Liberia e/ 10/ 600 600 700 700 --
Madagascar e/ 216 3/ 200 200 200 200
Malaysia 2,590 2,780 3,510 4,460 4,080 3/
Mali e/ 11/ 5,200 4,900 5,700 5,500 5,500
Mexico 9,680 10,100 9,890 11,100 r/ 13,900 3/
Mongolia e/ 1,000 800 900 1,200 r/ 2,000
Mozambique 63 394 296 149 336 3/
Namibia 1,610 1,860 2,030 1,950 2,450 3/
New Zealand 4,630 6,760 10,500 11,200 r/ 12,000
Nicaragua 1,200 e/ 1,150 1,320 1,240 r/ 1,070 3/
Panama 85 194 250 255 e/ 245
Papua New Guinea 31,900 60,800 71,200 60,600 59,300 3/
Peru 5/ 9,100 e/ 9,930 20,600 r/ 23,100 r/ 25,000 3/
Philippines 24,600 25,900 22,700 15,800 14,600 3/
Poland e/ 30,000 30,000 30,000 30,000 30,000
Portugal e/ 350 160 89 -- --
Romania e/ 3,000 3,000 3,700 3,000 4,000
Russia XX XX 146,000 150,000 147,000 3/
See footnotes at end of table.
 TABLE 7--Continued
GOLD: WORLD MINE PRODUCTION BY COUNTRY 1/ 2/

(Kilograms)

Country 1990 1991 1992 1993 1994 e/

Rwanda e/ 2,160 3/ 1,000 1,000 1,000 100
Saudi Arabia 3,540 4,780 6,150 7,520 r/ 8,000
Serbia and Montenegro 12/ XX XX 7,330 3,330 4,000
Sierra Leone 13/ 32 26 92 157 123 3/
Solomon Islands e/ 35 30 25 20 5
South Africa, Republic of 605,000 601,000 614,000 619,000 580,000 3/
Spain 6,810 7,400 6,580 6,080 r/ 6,000
Sudan e/ 100 50 1,000 1,600 2,500
Suriname e/ 30 30 300 300 300
Sweden 6,330 6,250 6,160 r/ 6,550 r/ 6,500
Taiwan 8/ 72 -- -- -- --
Tajikistan e/ XX XX 1,700 r/ 1,600 r/ 1,500
Tanzania e/ 3,500 4,200 6,000 6,000 6,000
Turkey e/ 14/ 1,010 970 1,120 1,250 1,250
U.S.S.R. 15/ 302,000 260,000 XX XX XX
United States 294,000 294,000 330,000 331,000 326,000 3/
Uruguay e/ -- -- -- 300 300
Uzbekistan e/ XX XX 75,000 r/ 75,000 r/ 75,000
Venezuela 7,700 4,220 7,550 8,710 9,940 3/
Yugoslavia 12/ 16/ 8,170 r/ 6,920 r/ XX XX XX
Zaire e/ 9,300 8,800 7,000 6,000 1,080 3/
Zambia 17/ 129 136 271 235 r/ 210
Zimbabwe 16,900 17,800 18,300 18,900 20,500 3/
Total 2,180,000 r/ 2,190,000 r/ 2,290,000 r/ 2,310,000 r/ 2,290,000
e/ Estimated. r/ Revised. XX Not applicable.
1/ Previously published and 1994 data have been rounded by the U.S. Bureau of Mines to three siginificant digits; may not add to totals shown.
2/ Table contains data available through July 20, 1995.
3/ Reported figure.
4/ Officially reported figures are as follows, in kilograms: Major companies: 1990--30,100; 1991--34,100; 1992--39,000; 1993--39,900; and 1994--45,000
(estimated). Garimpos 1990--71,800; 1991--55,500; 1992--46,800; 1993--34,300; and 1994--31,000 (estimated).
5/ Does not include undocumented production from small artisanal production.
6/ Year ending July 7 of year stated.
7/ Figures include reported Société Aurìfere de Guinea (SAG) mine production of, in kilograms: 1990--1,750; 1991--1,450; 1992--1,110; and 1993--500
(estimated). Remainder represents approximate reported sales to Government, of artisanal production. Figures do not include artisanal production smuggled
out of the country. In 1994, the SAG mine was closed.
8/ Refinery output.
9/ Excludes production from so-called people's mines, which may be as much as 18,000 kilograms per year, but includes gold recovered as byproduct of
copper mining.
10/ These figures are based on gold taxed for export and include gold entering Liberia undocumented from Guinea and Sierra Leone.
11/ Includes estimates of artisanal production and may include some gold smuggled into Mali. The Kalana Mine accounted for about 8% in 1990; about 2% in
1991; less than 1% in 1992; and none from 1993-94. The Syama Mine began gold production in 1990 and accounted for about 42% of the total output that
year, 49% in 1991; 57% in 1992; 56% in 1993; and 55% in 1994.
12/ All production in Yugoslavia from 1990-91 came from Serbia and Montenegro.
13/ Data are based on official exports and do not reflect gold moved through undocumented channels.
14/ Indicates byproduct of base metals.
15/ Dissolved in Dec. 1991.
16/ Dissolved in Apr. 1992.
17/ Year beginning Apr. 1 of year listed. Byproduct of copper production by Zambia Consolidated Ltd. only. Some addtional artisinal production was
reported but data are insufficient to make a reliable estimate.