If the 2021 production guidance are met, the collective production of the top 10 global gold producers is expected to recover by around 13.5 per cent in the seond half of 2021, compared with the first half, according to GlobalData. The company notes that total production is expected to be 14.9 million ounces (moz) in in the second half, compared to 13.1 million ounces in the first.
Vinneth Bajaj, Associate Project Manager at GlobalData said the companies saw a collective 1.1 per cent drop in production in the first half of 2021, compared to the year prior, due to barriers such as lower ore grades, the sale of assets, reduced mill throughput and lower recoveries.
“While this production is now expected to recover in the second half, overall output for 2021 will remain relatively flat, keeping around 27-28moz.”
Of the top 10 gold producers, the highest production increase came from Agnico Eagle due to increased mining and milling rates, as well as higher grades at the Meadowbank Complex. The company also saw higher throughput at its Meliadine site. Meanwhile, the companies within the top 10 producers that saw the most significant falls in production were AngloGold Ashanti (a 6.1 per cent loss), Barrick (12.9 per cent) and Newcrest (7.1 per cent). The collective output from these companies declined to 4.4moz from nearly 5moz the year before.
Bajaj continues: “While AngloGold’s first quarter operations were affected by operational challenges such as low ore grades, lower mill throughput and increased operational costs, second quarter operations were impacted by both the pandemic and the suspension of underground mining activities at Obuasi following a fall-of-ground incident in May 2021.
“Meanwhile, Barrick’s output was impacted due to the transition of its Goldstrike autoclave from acid to alkaline ore, a drop in the amount of ore processed at the Carlin roasters during the first quarter, and a failure at one of the two mills at the Carlin mine in the second quarter – coupled with extended planned maintenance shutdown at the Turquoise Ridge’s Sage autoclave. In addition, lower recovery and throughput at several mines further reduced the 2021 production.”
GlobalData has identified the top five countries for gold production: China, Australia, Russia, the US and Canada. Overall, production from these countries is expected to increase by 5.7 per cent to 50.8moz in 2021.
Bajaj comments: “Production in China, after reaching an all-time high in 2014 and a subsequent downtrend, is expected to grow by around 4 per cent in 2021. The country has been tackling issues related to frequent policy changes and depleting ore reserves, to which the pandemic became an additional challenge in 2020.”
Production in Indonesia will increase by 13.7 per cent owing to a rise in output from Grasberg — among the world’s five largest gold mines — following a transition to underground activities during the first half of 2019. Following steep declines in 2020, production is also expected to increase in Canada and Western Africa in 2021.
GlobalData has identified Newmont, Barrick, Polyus, AngloGold Ashanti, Kinross, Gold Fields, Newcrest, Agnico Eagle, Kirkland Lake Gold and Polymetal International Production as the world’s top 10 gold producers in the first half of 2021 by volume.
