Gold mining’s economic value drops

(File, Shutterstock)
(File, Shutterstock)

Johannesburg - Gold mining’s economic value worldwide sank 16% in 2013 as prices tumbled by the most on record, according to an industry lobby for the precious metal.

Gross value added, a gauge of the industry’s activity, was $83.1bn in 2013, or $171.6bn including the value of goods and services from outside businesses such as suppliers, the World Gold Council said in a report published Wednesday.

Gold mining’s economic contribution is up almost seven-fold since 2000 as output and the value of the metal climbed. Prices increased to a peak of $1 900 an ounce in 2011 from $272 an ounce at the end of 2000. Gold was $1 193 an ounce at 15:55 in Johannesburg on Tuesday. It dropped 28% in 2013.

Almost 60% of payments by gold mining companies to governments come in the form of income and corporation taxes, while a further 15% are royalties, the report said.

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