Gold is getting harder to find as miners struggle to excavate more, World Gold Council says

According to John Reade from the World Gold Council, gold mining companies are facing several challenges. These include:

1. Depleting reserves: Gold reserves that can be excavated are estimated at around 57,000 tonnes, and new gold deposits are becoming harder to find around the world as many prospective areas have already been explored.

2. Long lead times: Large-scale gold mining is capital-intensive, and requires significant exploration and development, taking an average of 10 to 20 years before a mine is ready for production.

3. Low discovery success rate: Even during the exploration process, the likelihood of a discovery progressing into the development of a mine is low, with only about 10% of global gold discoveries containing sufficient metal to warrant mining.

4. Difficulty in securing permits: Government permits are getting harder to secure and requiring more time to come through, making mining more difficult.

5. Infrastructure challenges: Many mining projects are planned for remote areas that require infrastructure such as roads, power, and water, resulting in added costs in building these mines and financing operations.

In summary, Reade states, "It's getting harder to find gold, permit it, finance it, and operate it."

The World Gold Council (WGC) has identified several factors that contribute to the difficulty of finding new gold deposits. These factors include:

1. Depletion of easily accessible deposits: Many prospective areas have already been explored, and gold deposits close to the surface or in easily accessible locations have likely been discovered. This makes finding new deposits more challenging.

2. Increased exploration depth: As the easily accessible deposits are depleted, mining companies must explore deeper underground or in more remote locations. This requires more advanced technology, increased investment, and higher operational costs.

3. Environmental and social concerns: Mining companies face growing scrutiny from governments, local communities, and environmental groups over the environmental impact and social implications of mining projects. This can lead to stricter regulations and a more challenging permitting process.

4. Securing licenses and permits: Governments have become more cautious in granting mining licenses and permits, and the process can take several years. This can delay or even halt mining projects.

5. Infrastructure challenges: Many new gold deposits are located in remote areas that lack essential infrastructure, such as roads, power, and water. Building this infrastructure adds to the cost and complexity of developing a mine.

6. Low discovery rate: The likelihood of a gold discovery progressing to the development of a mine is low. Only about 10% of global gold discoveries contain sufficient metal to warrant mining.

7. Capital-intensive industry: Large-scale gold mining requires significant investment in exploration, development, and production, with a mine typically taking 10 to 20 years to become operational. This high level of investment can be a barrier to finding and developing new gold deposits.