Note: Article adapted from here.
Gold has made a pronounced mark on history. From ornaments to jewellery, gold has been at the heart of cultures for thousands of years. It continues to be a lucrative investment, especially given the current instability and rising inflationary pressures.
Due to the long mining life cycle, gold is not heavily responsive to price fluctuations. The process from delivery to production is often decades long. Producer hedging is another important factor in this; wherein the supply of gold supplied to the market yearly, is influenced by the forward selling of subsequent production. The miners lock in a preferable price for their future gold production plans and hedging agreements are drawn out. Recently, this has proven to be relatively inappreciable.
Decades ago, the majority of the world's gold came from mines located in South Africa. Now, mining operations have broadened their reach and become more geographically diverse, given the increase in gold demand. According to the World Gold Council, the demand for the metal has increased 34% year-over-year reaching a whopping 1,234 tonnes, in the first three months of 2022. As a result, the levels of production have also increased notably, although advancements in practices are rare. The extraction of the adored metal is now a global industry, setting up operations on every continent, with the only exception being Antarctica.
Gold mining is carried out in varied scales. The World Gold Council stresses the importance of responsible mining processes. Traditionally, gold mining uses toxic cyanide in the extraction process, which on occasion seeps into the surrounding waterbeds and soil, polluting the environment. This causes significant harm to the health of the nearby inhabitants and the ecosystem as a whole. This process is not sustainable. Clean Mining, part of the Clean Earth Technologies Group, has a solution for the gold mining industry by replacing toxic cyanide and mercury with a non-toxic gold recovery agent. This reagent eliminates the risk of cyanide contamination, benefiting both human health and the environment.
Clean Mining’s non-toxic solution will help to deliver a safe alternative and revolutionise the gold mining industry, by putting an end to the harmful by-products of gold mining. Through this, hopefully, it would have reshaped gold mining worldwide, and create great benefit for people and the environment.