Gold: Production Is Being Ramped Up
In a great number of Third World developing countries the mining of gold becomes an industry of foundation which acts as the base for the entire pyramid of their developing economy. The income brought in from the mining of gold very often is responsible for providing the economic impetus which allows that developing country to reach critical mass as pertains to infrastructure of water, rail, road and electricity throughout that nation.
Developing countries were responsible for approximately three quarters of the entire global output of gold in the last decade. The most significant increase in gold production and output has been seen in as what is known as HIPC which are Heavenly Indebted Poor Countries. In these HIPCs in the last decade, the production of gold rose by almost 90%. There are 38 countries which are listed officially as HIPCs and 15 of them are producers of a considerable amount of gold. Over and above this level there is additional production in another 15 countries of sizeable amounts of gold.
The increase and the output of gold by the HIPCs have also been matched by an increasing dependence of the exporting of gold resources. In recent years, the production of gold was responsible for approximately 15 % of the exports from the top 15 producers of gold that are the most significant in the world. For example, the most important export for these HIPC countries is gold such as Guyana at 26%, Ghana at 32%, Tanzania at 44% and for Mali it is an extremely high 59% of all exported goods.
Every ten dollars per ounce which increases or decreases in the international price of gold has an effect of approximately 75 million dollars in the income to these HIPCs for the export of their gold resources.
Now that gold has reached over 1,200 dollars per ounce (which is a considerable rise of almost 400 dollars in the last few months), these HIPCs are certainly in much better financial situations than they were at that time.
Gold is also extremely important to a significant number of other countries which are also low income but are not listed formally as HIPCs. Some of these nations who are listed as moderately to severely indebted include Kyrgyzstan which has approximately 45% of its total exportation dedicated to gold while 36% is the figure for Papua New Guinea, 20% the figure for Mongolia, while Zimbabwe is at 11%.
There are various other countries which are generally acknowledged to not be HIPCs and rather fit in the categories of middle income or lower-middle income nations such as South Africa which exports gold to an extent of 13% of its total goods exports and Peru which has a percentage of 17%.
Some of the other developing countries which produce some form of gold in decreasing order are:
- Ivory Coast
- Burkina Faso
- D.R. Congo