Global mine production of gold up 6% in 1987

As in past years, international mining company Consolidated Gold Fields’ Gold 88, a review of last year’s gold scene around the world, does not disappoint. Below is a sampling of information “nuggets” from the publication.

* The total supply of gold in 1987 to the non-Communist private sector, at 2,008 tonnes, was slightly less than in 1986, but still well above the 1985 total.

* Mine production grew by 6% to 1,373 tonnes, the highest level ever. Sales from Communist bloc and old gold scrap (303 tonnes and 402 tonnes, respectively) were both below 1986 totals.

* Total fabrication of gold dropped by 5% to 1,589 tonnes, the first fall in four years. The whole of the decline was attributed to the absence last year of Japan’s Hirohito coin program.

* Jewelry fabrication, which accounts for more than 70% of all gold fabricated, absorbed 1,138 tonnes.

* Gold used in the minting of official coins declined by 110 tonnes to 207 tonnes.

* Identified bar hoarding outside of Europe and North America increased by 25% to 275 tonnes.

* Activity on the futures and options exchanges continues to grow, with the number of contracts in both types of markets jumping about 25% last year.

* The supply of gold, both new and scrap, to the world market exceeded the demand by fabrication and bar hoarding by 144 tonnes in 1987.

* Production of gold in South Africa was down in 1987 (to 607 tonnes) for the third straight year, falling ore grades and a strike by mineworkers contributing significantly. Increases in production were recorded by the U.S., Canada and Australia.

* The amount of gold used in making dental alloys has been falling this decade and in 1987 totalled less than 50 tonnes. Better preventive dentistry measures and a growing demand for alloys based on ceramics are part of the reason given for the decline.

* Canadian mine production jumped 14% to 120 tonnes last year, third among non-Communist nations after South Africa and the U.S. The Hope Brook gold project, which went into production in 1987, is located in Newfoundland, not New Brunswick as written in the publication.

* Global average cash operating costs increased by an estimated $39 to $227(US) last year; the average price of gold in 1987 was up $79 per oz. In Canada in 1987, cash operating costs averaged $209, up $10 from the year before.