Gold & Silver Mining
Description
Companies in this industry develop mine sites, mine and quarry gold and silver, and prepare gold and silver for sale. Major companies include Canada-based Barrick Gold, Kinross Gold, as well as Newmont (headquartered in the US), AngloGold Ashanti (South Africa), KGHM (Poland), Fresnillo (UK-based with primary operations in Mexico), Glencore (Switzerland), and Polymetal International (UK).
Worldwide, the industry produces more than 3,000 metric tons of gold and 25,000 metric tons of silver in 2023, according to Statista. Gold ore is primarily mined in Australia, Russia, and South Africa. Mexico, Peru, Chile, and Bolivia are the top silver producing countries.
The US gold and silver mining industry includes about 160 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
Many gold and silver mining companies also mine for other metals. Mining of iron, nickel, copper, and other metals, including gold and silver, is covered in the Metal Ore Mining industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by industrial production and economic growth. Individual company profitability depends on volume and operating efficiency. Large companies have more resources to devote to discovering and developing new deposits. Small companies typically own just one mine, limit exploration to that one property, and aim to operate it as efficiently as possible.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of companies engaged in gold and silver mining include gold ore and silver ore. Gold and silver are typically sold for financial investment purposes or for fabrication into products like jewelry, silverware, art, coins, medals, dental products, or electronics. Silver is also used in photography.
Almost all US metal ore mining companies use open-pit mines, where the surface is removed to reach ore deposits. Benches are cut into the mine walls to provide access to progressively deeper ore. The ore is extracted by drilling holes in the rock for explosives. After blasting, the ore is removed using huge earthmoving equipment such as power shovels and draglines. This equipment is bought from major mining and drilling equipment manufacturers. Once the gold or silver is exposed, smaller shovels are used to load it into trucks, rail cars, and conveyors for transport to a mill for processing. Mines are large, typically hundreds of acres.
Some companies have their own processing facilities, and others sell the unrefined ore to third-party processors. Most gold is processed by the mining company. Processing, or beneficiation, involves removing unwanted parts to improve the quality and purity of the metal. Steps include crushing, washing, filtering, sorting, sizing, separating, and acid leaching. Mined gold ore is typically sold as doré bars, unrefined bullion bars which consist primarily of gold but also contain silver and other metals. Doré is further processed by refiners, producing bullion of 99.95% gold.
Waste material, created by mining and processing, can be up to 99% of the rock volume in the case of precious metals, such as gold and silver. Mine tailings contain impurities and chemical residues that were used in beneficiation. Tailings dam failures and acid drainage into groundwater, caused by leakage or seepage during leaching, can be environmental problems.
Mining exploration and development focuses on finding large-scale deposits of metals and costs about 10% of company revenue. For new exploration, a feasibility study is completed and exploration conducted using airborne geophysical data, satellite and location devices (GPS), drone surveys, field-portable systems, and onsite geological prospecting. Companies often participate jointly on exploration projects and then pay royalties to each other for mineral rights. Mining companies either own the property outright or pay royalties or lease payments to the owners for mining rights. Mining is sometimes allowed on government land after rights are secured and royalties paid.
Ore reserves are estimated quantities of proven, probable, or possible material that may be economically mined in the future. Estimates of reserves are based on engineering evaluations and data derived from drilling holes. Mining companies must continually replace areas depleted by production, which makes reserves a major financial asset.
Worldwide, the industry produces more than 3,000 metric tons of gold and 25,000 metric tons of silver in 2023, according to Statista. Gold ore is primarily mined in Australia, Russia, and South Africa. Mexico, Peru, Chile, and Bolivia are the top silver producing countries.
The US gold and silver mining industry includes about 160 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $10 billion.
Many gold and silver mining companies also mine for other metals. Mining of iron, nickel, copper, and other metals, including gold and silver, is covered in the Metal Ore Mining industry profile.
COMPETITIVE LANDSCAPE
Demand is driven by industrial production and economic growth. Individual company profitability depends on volume and operating efficiency. Large companies have more resources to devote to discovering and developing new deposits. Small companies typically own just one mine, limit exploration to that one property, and aim to operate it as efficiently as possible.
PRODUCTS, OPERATIONS & TECHNOLOGY
Major products of companies engaged in gold and silver mining include gold ore and silver ore. Gold and silver are typically sold for financial investment purposes or for fabrication into products like jewelry, silverware, art, coins, medals, dental products, or electronics. Silver is also used in photography.
Almost all US metal ore mining companies use open-pit mines, where the surface is removed to reach ore deposits. Benches are cut into the mine walls to provide access to progressively deeper ore. The ore is extracted by drilling holes in the rock for explosives. After blasting, the ore is removed using huge earthmoving equipment such as power shovels and draglines. This equipment is bought from major mining and drilling equipment manufacturers. Once the gold or silver is exposed, smaller shovels are used to load it into trucks, rail cars, and conveyors for transport to a mill for processing. Mines are large, typically hundreds of acres.
Some companies have their own processing facilities, and others sell the unrefined ore to third-party processors. Most gold is processed by the mining company. Processing, or beneficiation, involves removing unwanted parts to improve the quality and purity of the metal. Steps include crushing, washing, filtering, sorting, sizing, separating, and acid leaching. Mined gold ore is typically sold as doré bars, unrefined bullion bars which consist primarily of gold but also contain silver and other metals. Doré is further processed by refiners, producing bullion of 99.95% gold.
Waste material, created by mining and processing, can be up to 99% of the rock volume in the case of precious metals, such as gold and silver. Mine tailings contain impurities and chemical residues that were used in beneficiation. Tailings dam failures and acid drainage into groundwater, caused by leakage or seepage during leaching, can be environmental problems.
Mining exploration and development focuses on finding large-scale deposits of metals and costs about 10% of company revenue. For new exploration, a feasibility study is completed and exploration conducted using airborne geophysical data, satellite and location devices (GPS), drone surveys, field-portable systems, and onsite geological prospecting. Companies often participate jointly on exploration projects and then pay royalties to each other for mineral rights. Mining companies either own the property outright or pay royalties or lease payments to the owners for mining rights. Mining is sometimes allowed on government land after rights are secured and royalties paid.
Ore reserves are estimated quantities of proven, probable, or possible material that may be economically mined in the future. Estimates of reserves are based on engineering evaluations and data derived from drilling holes. Mining companies must continually replace areas depleted by production, which makes reserves a major financial asset.
Table of Contents
- Industry Overview
- Quarterly Industry Update
- Business Challenges
- Business Trends
- Industry Opportunities
- Call Preparation Questions
- Financial Information
- Industry Forecast
- Web Links and Acronyms
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