GOLD—1997 33.1

GOLD

By Earle B. Amey

Domestic gold mine production increased to a record level,

nearly 9% above the all-time high reached in 1993. Primarily, this

growth was the result of a significant amount of new capacity that

had been in preparation during the previous 2 to 3 years before

coming on-stream. The United States has been the second largest

producer since 1991, when its production surpassed that of the

former Soviet Union for the first time in nearly five decades.

Nevada produced two-thirds of domestic production; the other

one-third came from 12 other States. Although the majority of the

Nation’s gold mines were in the Western States, several were in

operation in South Carolina and Wisconsin, east of the

Mississippi River. Gold was produced at about 120 lode mines, a

dozen or more large placer mines, nearly all in Alaska, and

numerous small placer mines, mostly in Alaska and the Western

States. In addition, a small amount of domestic gold was produced

as a byproduct of processing base metals, principally copper. Of

the gold produced in the United States, 30 mines yielded 90%.

The value of U.S. gold mine production was about $4 billion.

Domestic gold exploration activity, which peaked during the

late 1980’s, continued to increase on a total dollar basis, while

shrinking as a share of worldwide exploration as mining

companies pursued opportunities overseas. Many countries have

revised their mining laws, offering incentives for foreign

investment, and in some cases, have opened up areas previously

not available for exploration. In addition, technical advancements

in ore processing by heap leaching have led to more gold

exploration in developing countries where low-grade disseminated

gold deposits can be exploited by bulk-mining methods. Africa,

Latin America, and countries in the Pacific region have the

potential for the occurrence of this type of deposit (Wilburn, 1998,

p. 52).

Commercial-grade refined gold came from about two dozen

domestic producers. A few dozen companies, out of several

thousand companies and artisans, dominated the fabrication of

gold into commercial products. U.S. jewelry manufacturing was

heavily concentrated in the New York, NY, and Providence, RI,

areas; with added concentrations of these businesses occurring in

California, Florida, and Texas. In 1997, estimated uses were

jewelry and arts, 55%; electronics, 4%; dental, 3%; and other

industrial, 38%.

According to the World Gold Council, 1997 marked the sixth

consecutive year of unit sales increases for gold jewelry in the

United States. Total U.S. gold jewelry sales reached $12.6 billion,

up 2% from sales in 1996 (World Gold Council, 1998).

Trade in refined bullion comprised 92% of U.S. gold imports

and 82% of exports; net exports of bullion dropped to 198,000

tons, down about 25% from that of 1996. Canada provided more

than one-half of the bullion imported, and Switzerland was the

destination for more than one-half of the bullion exported. The

Office of the United States Trade Representative, assisted by the

U.S. Geological Survey (USGS), entered negotiations with 17

Asian and Pacific Rim governments to reduce barriers in gold

trade. The negotiations, still underway at yearend, focused on

tariffs as well as other barriers to international trade. Most

imports of unwrought gold, including bullion and doré, enter the

U.S. duty free.

The dollar price for gold decreased throughout the year. The

Engelhard Industries’ daily price of gold ranged from a low of

about $298 per troy ounce1 on November 26 to a high of nearly

$368 on January 1. The average for the year was, to the nearest

dollar, $332. The previous year’s prices ranged from about $369

to $391 and averaged $389.

By the second quarter, gold easing rates dropped, presenting a

good opportunity to make long-term structured deals. By the third

quarter, 12-month lease rates were driven briefly above 3% by the

demands made on liquidity by a combination of speculation, 

hedging, and withdrawal of lent gold (Murray and others, 1998,

p. 29). Typically, lease rates were well below 1%, except in midNovember of 1995, when short-term lease rates reached a

historical high.

Total world gold mine production increased to a record level,

about 5% above the all-time high reached in 1996. Despite a

fourth successive annual decline in production, South Africa

remained the largest of more than 80 gold-producing nations,

followed by the United States, Australia, Canada, and China.

Identified world gold resources at yearend 1997 were estimated at

89,000 tons, of which 15% to 20% was byproduct resources; the

world reserve base was estimated to be 72,000 tons and reserves

45,000 tons (Roger Ashley, Gold Resource Specialist, U.S.

Geological Survey, oral commun., 1997). South Africa had about

one-half of the resources and reserve base and 41% of the

reserves. The United States had about 12% of world resources, 8%

of the reserve base, and 12% of the reserves.

About 15% of all gold mined is thought to have been lost, used

in dissipative industrial uses, or otherwise unaccounted for or

unrecoverable (Thomas and Boyle, 1986). Therefore, of an

estimated 123,000 tons of gold mined in historical times through

1997, 105,000 tons of gold remain, with about 34,000 tons held

by central banks as official stocks and about 71,000 tons held

privately as bullion, coin, and jewelry.

Production

Domestic mine production data for gold were derived by the

USGS from two separate voluntary surveys of U.S. operations.

One of these surveys is the production survey of copper, gold,

lead, silver, and zinc lode mines. Of the 118 lode gold producers

in operation to which a survey request was sent, 115 responded,

representing 97% of the total gold shown in tables 1 and 2. The

1Where used by itself elsewhere in this report, ounce refers to troy ounce; 1

kilogram of gold is equivalent to 32.1507 troy ounces.
33.2 GOLD—1997

individual company production and performance data cited in this

report were obtained from published sources, such as company

annual reports.

Of the total domestic gold produced during 1997, 93% was

extracted from gold ore, and the remainder was derived from base

metal ores, other precious-metal ores, and placer deposits. By

comparison, similar data assembled for 1980 indicated that gold

ores provided 63% of the total gold produced and the remainder,

37%, was derived from base metal ores, other precious-metal ores,

and placers. In both years, the contribution from placer mines

amounted to less than 2% of the total gold produced.

Although most domestic gold mines were open pit mines,

interest in underground methods continued to increase as more

near-surface deposits reached depletion. Some of the deeper

deposits, accessible only by underground methods, contain higher

grade sulfide ores that require more extensive processing than the

oxidized ores encountered in most near-surface operations. Along

with this shift in ore types and the related maturing of the U.S.

gold mining industry, there has also been a trend toward fewer but

larger gold mines.

Alaska.—The State’s Division of Geology and Geophysical

Surveys reported that gold output increased significantly from an

estimated 5 tons (160,000 ounces) worth $61 million in 1996 to

16.3 tons (524,000 ounces) worth $175.4 million in 1997, or an

approximate increase in production of 225% and an increase in

associated value of 185% (Swainbank and others, 1998). The new

underground Fort Knox gold mine near Fairbanks, which began

to produce gold during the first quarter, became Alaska’s largest

gold mine in 1997. Amax Gold, the owner and operator, reported

that the mine produced almost 10,000 kilograms of gold (Amax

Gold Inc., 1998). An estimated 144 placer mines were operating

in 1997, about the same as in 1996. Placer production rose from

3,090 to 3,240 kilograms of gold. 

Operations at the Greens Creek Mine on Admiralty Island, off

Juneau, AK, restarted ahead of schedule. Grinding and flotation

circuits at the silver-zinc-lead-gold mine were started the week of

July 22, 1996, well ahead of the original schedule, and full

production levels were achieved in January 1997. Hecla Mining

reported that the mine produced more than 1,700 kilograms of

gold (Hecla Mining Company, 1998, p. 15). Greens Creek is a

joint venture between Kennecott Greens Creek Mining (70.3%)

and Hecla (29.7%).

Nixon Fork Mining, the operating subsidiary for Consolidated

Nevada Goldfields, reported that the underground Nixon Fork

copper-gold mine near McGrath mined about 1,200 kilograms of

gold (Consolidated Nevada Goldfields Company, 1998).

Dakota Mining’s Illinois Creek gold mine in west-central

Alaska started producing gold at a sustainable rate of about 40

kilograms per week in September (Swainbank and others, 1998).

Arizona.—Addwest Minerals International’s Gold Road Mine,

an underground mine in Mohave County, produced 1.1 tons

(35,000 ounces) of gold (Addwest Minerals International,

Limited, 1998).

California.—Gold production in California reportedly rose

about 2% from that of 1996, as shown in table 2. California’s

largest gold mine, Newmont Gold’s Mesquite Mine, near

Brawley, yielded about 7.1 tons (228,000 ounces) of gold from

oxide and sulfide ores that were mined by open pit methods

(Newmont Gold Company, 1998, p. 8). In eastern Imperial

County, Glamis Gold continued to produce gold by using heapleaching methods at its Picacho Mine and continued exploration

at its nearby Imperial project. Picacho produced more than 1 ton

(33,200 ounces), close to its record production of 1.1 tons (34,600

ounces) in 1996, but after 16 years of gold production, reserves

were exhausted during 1997 and mining ceased. Gold recovery

from the last ore heap was expected to take 2 years, after which

reclamation will begin. Glamis, through its wholly owned Rand

Mining, also produced 2.9 tons of gold (94,000 ounces) at its

Rand Mine near Randsburg. Almost all mining at the Rand Mine

has been carried out at the Yellow Aster Pit (Glamis Gold

Limited, 1998).

Glamis is continuing with the permitting process at its Imperial

project. A Record of Decision is expected from the Bureau of

Land Management by December 1998, with production possible

in 1999. Reserves are 86.3 million tons grading 0.5 gram of gold

per ton (diGesu and others, 1998, p. 6).

In eastern San Bernardino County near the Nevada-California

State line, about 95 kilometers southwest of Las Vegas, NV, the

Castle Mountain Mine of Viceroy Resource and MK Gold 

produced an estimated 3.8 tons (122,000 ounces) of gold (Viceroy

Resource Corporation, 1998).

Siskon Gold’s new San Juan Mine, north of Grass Valley,

produced 0.1 ton (3,500 ounces) of gold. During the first week in

April, unforeseen ground failures occurred in the area where

mining operations were advancing in the eastern ore body,

preventing any further progress from existing haulageways.

Retreat mining was conducted back to the area of the

underground plant. By early May, mining operations had been

suspended (Siskon Gold Corporation, 1997).

Colorado.—Gold production in the State remained steady

owing to an increase in production from Cresson Mine in the

Cripple Creek District of Teller County. Golden Cycle Gold

reported that this open pit mining operation produced 7.1 tons

(228,000 ounces) of gold in 1997 (Golden Cycle Gold

Corporation, 1998).

Idaho.—In spite of a full year of production from Meridian

Gold’s Beartrack Mine, near Salmon, total gold production for

Idaho slipped by more than 15% (Meridian Gold Incorporated,

1998). Dakota Mining’s wholly owned Stibnite Mine in Valley

County decreased its gold production to 0.5 ton (15,000 ounces)

in 1997 from 0.9 ton (29,000 ounces) in 1996 (Wilburn, 1998, p.

52).

Pegasus Gold’s Black Pine Mine in Cassia County also

produced less gold—1.4 tons (44,000 ounces) in 1997 versus 2.7

tons (88,000 ounces) in 1996. Black Pine reportedly was mined

out during the fourth quarter of 1997 (Pegasus Gold Incorporated,

1998).

Gold production at the Grouse Creek gold mine near Challis

declined about 65% to 0.8 ton (27,000 ounces) in 1997 from 2.4

tons (77,000 ounces) in 1996. During the year, mining ceased, the

milling facilities were mothballed, and reclamation activities were

undertaken as necessary to prevent degradation of the property

(Hecla Mining Company, 1998, p. 29).

Montana.—According to the annual review of mining and

mineral developments prepared by the Montana Bureau of Mines

and Geology, exploration for gold fell as the last of the major

companies closed its Montana exploration offices (McCulloch,

R.B., 1998, p. 89).
GOLD—1997 33.3

Gold output rose to 10 tons (320,000 ounces) in 1997 from 9.1

tons (293,000 ounces) in 1996. Of the five mines producing gold

in Montana during the year, four were owned and operated by

Pegasus Gold— the new Diamond Hill Mine in Jefferson County;

the Beal Mountain Mine in Silver Bow County; the Montana

Tunnels Mine, a gold, lead, silver, and zinc mine in Jefferson

County that was the State’s second largest gold mine in 1997; and

the Zortman Mine in Phillips County. The total gold production

of these mines during the year amounted to about 5.1 tons

(160,000 ounces) (Pegasus Gold Incorporated, 1998).

Placer Dome’s wholly owned Golden Sunlight Mine near

Whitehall is Montana’s largest gold-producing mine with 4.9 tons

(158,800 ounces) in 1997; production in 1996 had amounted to

nearly 3.7 tons (117,900 ounces) of gold (Placer Dome

Incorporated, 1998). The company indicated that it is working

with the Montana Department of Environmental Quality to

complete an environmental impact statement for an expanded

Stage 5 pit that will extend the main pit life by 6 years.

Land near Cooke City, which is on the outskirts of Yellowstone

National Park, was closed to hard rock mining for the next 20

years. The Department of the Interior withdrawal order for 22,065

acres became effective August 19. This decision was based on a

comprehensive environmental impact statement released in July

that examined potential impacts on surface and ground water, as

well as on fish and other aquatic life (American Metal Market,

1997a).

Nevada.—Nevada maintained its long–standing position as the

Nation’s dominant gold-producing State. Of the Nation’s top 30

gold-producing mines, 14 were in the Silver State. Primary gold

production increased to 244 tons (7.8 million ounces).

Newmont Mining merged with Santa Fe Pacific Gold, creating

Newmont Gold, the largest gold mining company in North

America (American Metal Market, 1997b). Newmont Gold

produced 84.9 tons (2.8 million ounces) of gold from 17 open pit

operations and 5 underground mines centered in Humboldt,

Pershing, Eureka and Elko Counties (Newmont Gold Company,

1998). In May, Newmont marked 32 years of production on the

Carlin Trend, which it discovered in the mid-1960’s. The

company’s extensive operations along the Carlin Trend included

open pit mines from which nearly 369 million tons of ore and

waste was mined during the year, accounting for more than 80%

of Newmont’s Carlin Trend production. Mining began at its new

Rosebud underground mine, located in Pershing County, in April

(Newmont Gold Company, 1998). To recover gold from the

widely varying grades and many types of ore it is currently

mining along the Carlin Trend, Newmont uses several processing

methods. The company’s $350 million refractory (sulfidic and

carbonaceous) ore treatment plant, or roaster, which is reported

to be the largest facility of its kind in the world, processed almost

one-third of the company’s production in Nevada—21.8 tons

(700,000 ounces) of gold during the year, a 30% increase from

1996. On May 5, the first sulfidic ore was processed through the

first of two new autoclaves at Twin Creek’s Sage Mill. The

second autoclave was commissioned in October. The twin

autoclaves, the industry’s largest, have a combined capacity of

4,000 tons per day.

Barrick Gold was the Nation’s second largest gold mining

company and reportedly recovered 50 tons (1.61 million ounces)

of gold at its Betze-Post Mine in Eureka County. In nearby Elko

County, Barrick continued development of its Meikle Mine, an

underground operation that produced 17.9 tons (574,000 ounces)

of gold. These Barrick operations on the Carlin Trend are

developed within a 2,800-hectare landholding known as the

Goldstrike property. In addition, Barrick’s wholly owned Bullfrog

Mine near Beatty produced nearly 6.4 tons (206,600 ounces) of

gold (Barrick Gold Corporation, 1998).

Northwest of Elko, Independence Mining and Meridian Gold

produced about 10 tons (320,000 ounces) of gold at its Jerritt

Canyon Mine (Meridian Gold Incorporated, 1998). At the

Getchell Mine, in Humboldt County, FirstMiss Gold produced 5.6

tons (180,000 ounces) of gold from its underground operations

(Getchell Gold Corporation, 1998). Other gold mines in

Humboldt County include the Hycroft (formerly the

Crofoot/Lewis), the Marigold, and the Pinson.

South of and parallel to the Carlin Trend, the Battle

Mountain/Eureka Trend runs from southeastern Humboldt County

and southeast through Lander and Eureka Counties. Gold mining

operations along this trend in Lander County include the Battle

Mountain Complex, which produced 2.4 tons (78,000 ounces)

(Battle Mountain Gold Company, 1998); the McCoy/Cove gold

and silver mine, which produced 5.8 tons (187,000 ounces) (Echo

Bay Mines Limited, 1998); and the Cortez Mine (Placer Dome

60% and Kennecott Mining 40%) which produced 12.7 tons

(408,000 ounces) (Placer Dome Incorporated, 1998). Mining

permits for the Cortez joint venture’s South Pipeline project are

expected by the end of 1998, and development is tentatively

planned for 2002. With a 20% royalty held by Royal Gold and

lower ore grades than at the Pipeline project, the owners appear

to be in no hurry to develop the South Pipeline (diGesu and

others, 1998, p. 6).

At Round Mountain, about 95 kilometers north of Tonopah, the

Round Mountain Mine property of Echo Bay Mines produced

about 14.9 tons (478,000 ounces) of gold during the year (Echo

Bay Mines Limited, 1998).

The largest reserve studied in the United States is Newmont

Gold/Barrick Gold’s High Desert joint venture in the Carlin

Trend. The mine plan and environmental impact statement have

been submitted to the Bureau of Land Management and a permit

is expected by mid-1998 with a full annual production of more

than 15 tons of gold in 1999 (diGesu and others, 1998, p. 5).

South Dakota.—Gold production remained largely unchanged.

Homestake Mining’s 120-year-old Homestake Mine at Lead was

again the Nation’s largest underground gold mine, the largest

gold-producing mine in South Dakota, and the seventh largest

gold-producing mine in the country. During the year, the mine,

a nearly 2.5-kilometer-deep operation with associated surface

mining, yielded about 12.3 tons (400,000 ounces) of gold at a

reported cash production cost of $335 per ounce (Homestate

Mining Company, 1998).

Wharf Resources operated an open pit gold mine near Lead, the

wholly owned Wharf Mine, which produced about 3.2 tons

(103,000 ounces) of gold (Goldcorp Incorporated, 1998).

On May 29, the State of South Dakota obtained a temporary

restraining order against Brohm Mining that requires Brohm to

continue to operate water treatment systems at the Gilt Edge Mine

in accordance with State mine permits. Brohm said it intends to

comply with this order. The Gilt Edge Mine operation has been

discontinued with the exception of these activities (Dakota
33.4 GOLD—1997

Mining Corporation, 1998).

Utah.—Rio Tinto’s Bingham Canyon Mine, which is operated

by Kennecott-Utah Copper, produced about 18.8 tons (603,000

ounces) of gold as a byproduct of its copper mining operations

near Salt Lake City. Long ranked as one of the Nation’s principal

gold-producing mines, Bingham Canyon was the third largest

gold producer in 1997. Kennecott also operated the nearby

Barney’s Canyon Mine, an open pit and heap-leaching operation

that produced 4.2 tons (135,000 ounces) of gold (Rio Tinto

Limited, 1998).

Barrick Gold’s open pit Mercur Mine in Tooele County yielded

about 1.3 tons (40,000 ounces) of gold. Mercur began closure

activities in early 1997. Mill processing of tailings from earlier

mining operations is expected to continue into late 1998, when

the mill will close (Barrick Gold Corporation, 1998).

Washington.—Echo Bay Mines’ Kettle River Mine, located in

the scenic mountains of northeastern Washington State, produced

a record 4 tons (130,000 ounces) of gold in its seventh year of

production (Echo Bay Mines Limited, 1998).

The State Department of Ecology approved certain key water

rights for the Crown Jewel project in November, but additional

State and Federal permits and approvals are required. In addition,

legal appeals by special interest groups remain outstanding. If

favorable rulings are assumed and no further legal delays occur,

construction could begin in early 1999, with projected annual

production of 5.4 tons (175,000 ounces) of gold to follow about 14

months later (diGesu and others, 1998, p. 6).

Wisconsin.—Rio Tinto’s Flambeau Mine completed mining 0.4

ton (12,000 ounces) of gold by March, and site reclamation began.

The small pit has been back filled and final grading will be

completed in 1998 (Rio Tinto Limitted, 1998).

World Review

World gold mine production rose significantly in 1997 for the

second consecutive year. Increasing production from mines in

Australia, North America, and South America has been enough

to help offset a continuing sharp decline in gold output from

South Africa. According to its annual review of world gold supply

and demand, Gold Fields Mineral Services calculated that the

total global supply of gold in 1997 was 4,254 tons (137 million

ounces) compared with the previous year’s total supply of 3,510

tons (113 million ounces) in 1996 (Murray and others, 1998, p.

5). Gold Fields reported that apart from old gold scrap, every

component of supply showed an increase in 1997, from a

surprising 4.6% increase in mine production, to an order-ofmagnitude jump in supply from forward sales (Murray and others,

1998, p. 5).

On the demand side, Gold Fields reported some dramatic

increases. Bar hoarding almost doubled to reach the highest level

since the late 1980’s; the use of gold in the electronics industry

rose to a new record level; and jewelry fabrication reached the

highest level ever, surpassing the previous year’s record demand

by more than 17%. In addition, the coin sector showed a robust

recovery, with offtake rising to a 5-year high (Murray and others,

1998, p. 7).

With regard to gold exploration, the Metals Economics Group

of Halifax, Canada, determined from its annual survey of

worldwide exploration budgets for 251 companies that the

percentage of mineral exploration expenditures directed to gold

targets rose to 64.9% in 1997, the highest level devoted to gold

since 1989 (Beamish and others, 1997). For the fourth

consecutive year, the most money for exploration for hard-rock

minerals of all kinds was spent in Latin America, about 30% of

the world exploration budget of $5.1 billion. This was a result

primarily of mining legislation reform and favorable geology

(Mining Journal, 1997b).

Australia.—Australian gold mine production increased by 8%

in 1997, to reach its highest level ever, helping Australia retain

its position as the world’s third largest gold-producing nation. Of

the 311 tons (10 million ounces) of gold mined in 1997, Western

Australia, Queensland, and the Northern Territory accounted for

about 76%, 9%, and 8%, respectively (Australian Bureau of

Agricultural and Resource Economics, 1998); Western Australia’s

production was derived principally from mining operations near

Kalgoorlie. Other Australian gold-producing States were, in

descending order of output, New South Wales, Victoria,

Tasmania, and South Australia.

Although a number of Australian mines were exhausted, were

shut down, or were placed on care-and-maintenance, the losses

were more than compensated for by new production from the

Sunrise Dam, Vera-Nancy, and Earnest Henry Mines and

increased production from existing mines (Murray and others,

1998, p. 18). The largest gold producer was the Super Pit lode

mine in Western Australia (Mining Journal, 1998a).

The Western Australian Government Court offered the State’s

gold miners some respite on gold royalties. The first phase of the

royalties on gold production was delayed by 9 months; the 1.25%

flat royalty charge on production will be levied in July 1998

instead of October 1997. In addition, the threshold for exemption

from payment of the royalty was raised from 1,000 ounces of gold

per year to 2,500 ounces. Full royalties of 2.5% will be effective

July 1, 2000—a 12-month deferral. The Government has

promised that the higher rate will be applicable only if the gold

price is more than A$435 per ounce (Metal Bulletin, 1997).

The Reserve Bank of Australia sold 167 tons of gold, or more

than two-thirds of its total reserves, over the first 6 months of

1997. Widespread gold mine closures were said to be feared in

Australia, which is rated as the world’s second highest-cost gold

producer behind South Africa. Mines considered most vulnerable

included Telfer, Big Bell, Wiluna, Paddington, and Meekatharra.

According to Sydney-based AME Mineral Economics, Australia’s

cost of gold production was $271 per ounce in 1996, up from

$253 per ounce in 1995 (Platt’s Metals Week, 1997a).

Brazil.—During 1997, Brazilian production fell for the ninth

consecutive year, to drop below the 60–ton level for the first time

since 1983. Output from the informal mining sector was estimated

to have dropped to as low as 19 tons (610,000 ounces). Although

there are still regions in the Brazilian jungle where informal

mining is actively, and even profitably, accomplished, local

miners tell stories of hundreds of abandoned workings and

destroyed airstrips that are rapidly being reclaimed by the

rainforest. By contrast, the formal mining sector has adjusted well

with only marginally less gold production in 1997, at about 40

tons (1.3 million ounces) of gold. Additional capacity is expected

in 1998 as the Brasilia/Paracatu and Serra Grande Mines are

brought on-stream. In addition, with the successful privatization

of Brazil’s largest gold producer, the State-owned mining giant
GOLD—1997 33.5

Companhia Vale do Rio Doce (CVRD), CVRD could see

substantial increases in May at its five operating gold mines

(Murray and others, 1998, p. 21).

Canada.—In 1997, gold production continued to rebound,

reversing the downward trend from 1992 through 1994. Canada

retained its position as the world’s fourth largest gold producer.

Gold was produced at about 42 lode gold mines, which accounted

for 90.4% of the total gold output. Base metal mines and placer

mines accounted for 7.2% and 2.4%, respectively, of the total.

During the year, 3 gold mines began operation and 11 mines shut

down. Canada’s principal gold-producing regions were, in

descending order of output, Ontario, Quebec, British Columbia,

and the Northwest Territories. Gold was also produced in

Manitoba, New Brunswick, Newfoundland, Saskatchewan, and

Yukon Territory (Giles Couturier, Natural Resources Canada,

1998, written commun./unpub. data).

Chile.—Gold production in Chile, because of the depletion of

reserves at some older mines, extreme weather conditions caused

by El Niño, and operational difficulties at Bema Gold’s Refugio

Mine in Maricunga, declined 7% to 50 tons (1.6 million ounces)

(Murray and others, 1998, p. 21).

India.—India, which consumes 16% of the world’s gold, more

gold than any other country, eased import restrictions on gold,

allowing its overseas residents, effective April 2, to bring 10

kilograms of gold into India as part of their baggage, double the

quantity allowed previously. Residents must have been abroad for

6 months or more before they can qualify, and they will be

required to pay a “nominal” import duty on the gold they bring.

The easing of gold import rules did not apply to imports under

other schemes, such as gold jewelry export promotions (Platt’s

Metals Week, 1997b).

India reported gold jewelry exports of more than $800 million

in the fiscal year ending March 31, 1998. Although about 7%

more than in 1997, the amount of gold jewelry exported was short

of the official target of $850 million (Platt’s Metals Week, 1998).

Starting in January 1998, the Indian Government was expected

to authorize all agencies importing gold and silver into the

country to sell gold on the domestic market. This latest move is

aimed at boosting exports of gold and jewelry, and bringing into

legal channels much of the present illegal financing of gold

imports. Imports will be subject to duty at only 5%, hence, the

authorization, over time, will have a major effect on gold and

silver prices (Mining Journal, 1997a).

Indonesia.—Gold output was estimated to have risen by 4.6%

in 1997 and by more than 160% since 1993. Freeport Indonesia

again improved its output of byproduct gold at its

Grasberg/Ertsberg copper-gold mine in West Irian, and PT Kelian

Equatorial Mining increased its production of gold at the Kelian

Mine in East Kalimantan. A fourth concentrator, mine, and mill

expansion is planned at Grasberg, which would further increase

its gold output to an estimated 62 tons (2,000,000 ounces) per

year. The first gold was poured in January at the Rawas Mine,

where gold output reached close to 2 tons (64,000 ounces)

(Murray and others, 1998, p. 24).

Mexico.—Gold production in Mexico rose to more than 26 tons

(840,000 ounces) in 1997 compared with 24 tons (775,000

ounces) in 1996. During the year, production at Santa Cruz

Gold’s Lluvia de Oro Mine was only 0.2 ton (7,000 ounces), but

is expected to produce almost 1 ton (30,000 ounces) as startup

problems are resolved. Santa Cruz Gold was formed by the

merger of Great Lakes Minerals and Newmex Mining. Eldorado’s

La Trinidad Mine enjoyed its first full year of operation,

producing 1 ton (30,000 ounces). The country’s mining sector has

been revitalized by the introduction of new legislation that

encourages investment and exploration. The latest set of

regulations is to come into effect early in 1998 (Mining Journal,

1998b).

Papua New Guinea.—Gold production in Papua New Guinea

declined for the fifth consecutive year. Water levels in the Fly

River dropped too low, due to one of the worst droughts in

history, to allow transportation of copper concentrates from the

Ok Tedi Mine. Hence, the mill at Porgera was forced to shut

down, and mining was suspended at both Ok Tedi and Porgera for

several weeks. Lihir Gold’s gold mine, on Lihir Island, in the

Bismark Archipelago, experienced a smooth startup in August

and produced more than 7 tons (225,000 ounces) of gold during

its first year of operation (Murray and others, 1998, p. 24).

Peru.—For the second consecutive time since the 1960’s,

production in Peru exceeded that in Brazil, making it the largest

gold producer in Latin America at just under 77 tons (2.5 million

ounces) of gold. The growth of the Peruvian mining industry has

been quite phenomenal, with gold production increasing 300% in

the last 5 years. The main impetus for this increase came from the

large-scale, open pit, low-cost, heap-leach Yanacocha Mine in

northern Peru, where owners Newmont Gold and Cia. de Minas

Buenaventura extracted more than 33 tons (1.1 million ounces) of

gold in 1997. The Yanacocha Mine, which was the largest gold

mining operation in Latin America for the third consecutive year,

yielded gold at cash costs of $98 an ounce, making it the lowestcost gold mine in the world in 1997. In addition, production

began at Hochschild’s Sipan Mine, where gold output is expected

to reach about 3 tons (96,500 ounces) per year during 1998

(Murray and others, 1998, p. 19).

Russia and the former Soviet Union.—Of the independent

gold-producing countries resulting from the dissolution of the

U.S.S.R. in late 1991, Russia is by far the largest producer in

terms of output and number of operations, as well as a real

distribution. The majority of Russia’s production derives from

formerly State-owned enterprises and workers’ cooperatives,

known as artels, which principally exploit placer deposits

scattered throughout Siberia and the Russian Far East.

Production in Russia fell 6.5% to 115 tons (3.7 million ounces)

of gold. This was the third consecutive year of declining

production, and reflects the continued financial crisis prevailing

in the country, which affected all of the 30 gold-producing

regions. In contrast to the poor performance in Russia, production

in Uzbekistan increased by 4%. This modest increase was said to

be largely as a result of Newmont Gold’s efforts at Zarafshan,

where about 218 million tons of low-grade stockpiled material

had accumulated over 27 years of mining at the Muruntau Mine,

the largest open pit gold mine in the world. Processing of the

enormous stockpiles of low-grade rock dumps began late in 1995

and resulted in the production in 1997 of 13 tons (420,000

ounces) of gold (Murray and others, 1998, p. 22).

South Africa.—In 1970, the continent of Africa was the source

of 81.8% of the world’s gold output, but with the increase in

production in Australia and North America, Africa’s share had

declined to only 20% in 1997. Gold production in South Africa,
33.6 GOLD—1997

the world’s largest gold-producing nation, declined for the fourth

consecutive year to 483 tons (15.5 million ounces) of gold, more

than 3% lower than in 1996. Extensive high-grading was evident;

this contributed to production, keeping declines from being

greater. Progress related to labor relations had a positive impact

on productivity; however, the gold mining industry was faced

with cost pressures that intensified to such an extent that, by the

third quarter, more than 50% of all mines were operating at a loss

(Murray and others, 1998, p. 18).

The tonnage and grade of ore milled during 1997 by the nearly

three dozen mines composing the membership of the Chamber of

Mines of South Africa amounted to more than 93 million tons at

a grade of 4.95 grams per ton of gold; this compares with a

similar total tonnage of 94 million tons, which was at a slightly

lower grade of 4.91 grams per ton, milled by Chamber members

in 1996.

Of the top 15 gold-producing companies in the world in 1997,

6 were South African. Anglo American Corp. of South Africa

Ltd. (AAC) remained the leading gold-producing company in the

world. AAC owns the Freegold and the Vaal Reefs Mines. Gold

Fields of South Africa (GFSA) remained at third in the world.

GFSA owns the Driefontein and Kloof Mines. The other four

companies were Gencor (9th); Johannesburg Consolidated

Investment (10th); Anglovaal (13th); and Harmony (15th).

Harmony made its first appearance as a top producer with

acquisitions of the Grootvlei and the Consolidated Modderfontein

gold mines (Murray and others, 1997, p. 19).

Outlook

The traditional role of gold as a store of value has not been able

to lift the gold price out its 18-year-low trading range. The market

continues to be concerned about the future role of gold in the

reserves of the European Central Bank (ECB), which will

commence operation on January 1, 1999. It appears that gold will

account for 10% to 15% of the bank’s foreign reserves. This

would leave significant quantities of gold with European

Monetary Union (EMU) national central banks, and there is

uncertainty about the degree of control those banks will retain

over its reserves. The final make-up of the ECB and the

determination of its relationship to national central banks will

influence the gold market far beyond the member countries of the

EMU.

References Cited

Addwest Minerals International, Limited,1998, Addwest Minerals annual report

1997: Arvada, CO, Addwest Minerals International, Limited, p. 4.

American Metal Market, 1997a, Babbitt closes federal land to mining: American

Metal Market, v. 105, no. 165, August 26, p. 6.

———1997b, Santa Fe, Newmont sign $2.5 B merger agreement: American Metal

Market, v. 105, no. 48, March 19, p. 4.

Amax Gold Inc., 1998, Form 10-K: Washington, DC, U.S. Securities and Exchange

Commission, p. 3.

Australian Bureau of Agricultural and Resource Economics, 1998, Australian

Mineral Statistics December Quarter 1997: Canberra, Australian Bureau of

Agricultural and Resource Economics, p. 15.

Barrick Gold Corporation, 1998, Barrick Gold annual report 1997: Toronto, Canada,

Barrick Gold Corporation, p. 55.

Battle Mountain Gold Company, 1998, Form 10K405: Washington, DC, U.S.

Securities and Exchange Commission, p. 7.

Beamish, Marilyn, and others, 1997, Overview of worldwide exploration

expenditures: Halifax, Canada, Metals Economics Group Strategic Report,

v.10, no. 5, September-October, p. 1-5.

Consolidated Nevada Goldfields Company, 1998, Consolidated Nevada Goldfields

annual report 1997: Denver, CO, Consolidated Nevada Goldfields Company,

p. 12.

Dakota Mining Corporation, 1998, Form 8-K: Washington, DC, U.S. Securities and

Exchange Commission, p. 3.

diGesu, Dominique, and others, 1998, Potential new U.S. gold production: Halifax,

Canada, Metals Economics Group Strategic Report, v. 11, no. 3, May-June, p.

1-8.

Echo Bay Mines Limited, 1998, Echo Bay Mines annual report 1997: Englewood,

CO, Echo Bay Mines Limited, p. 6, 8.

Getchell Gold Corporation, 1998, Getchell Cycle Gold annual report 1997: 

Englewood, CO, Getchell Gold Corporation, p. 3.

Glamis Gold Limited, 1998, Glamis Gold annual report 1997: Reno, NV, Glamis

Gold Limited, p. 1.

Golden Cycle Gold Corporation, 1998, Golden Cycle Gold Corp. annual report 1997:

Colorado Springs, CO, Golden Cycle Gold Corporation, p. 1.

Goldcorp Incorporated, 1998, Form 6K: Washington, DC, U.S. Securities and

Exchange Commission, p. 5.

Hecla Mining Company, 1998, Form 10-K: Washington, DC, U.S. Securities and

Exchange Commission, p. 15, 29.

Homestake Mining Company, 1998, Homestake Mining Co. annual report 1997: San

Francisco, CA, Homestake Mining Company, p. 5.

McCulloch, R.B., 1998, Montana: Mining Engineering, v. 50, no. 5, May, p. 89-91.

Meridian Gold Incorporated, 1998, Form 6K: Washington, DC, U.S. Securities and

Exchange Commission, p. 2.

Metal Bulletin, 1997, WA government defers gold royalty: Metal Bulletin, no. 8203,

August 14, p. 8.

Mining Journal, 1997a, India liberalizes gold trade: Mining Journal, v. 329, no. 8452,

October 24, p. 348.

———1997b, Mining Journal, 1997, Latin America still leads exploration: Mining

Journal, v. 329, no. 8452, October 24, p. 338.

———1998a, Australian gold output increases: Mining Journal, v. 330, no. 8469,

February 2, p. 167.

———1998b, North America—Annual review supplement: Mining Journal, v. 330,

no. 8480, May 15, p. 12.

Murray, Stewart, Klapwijk, Philip, le Roux, Hester, and Walker, Paul, 1998, Gold

1998: Gold Fields Mineral Services Limited, 62 p.

Newmont Gold Company, 1998, Newmont Gold Company annual report 1997:

Denver, CO, Newmont Gold Company, p. 6-8.

Pegasus Gold Incorporated, 1998, Pegasus Gold Update: Spokane, WA, Pegasus

Gold Incorporated news release, March 10, 5 p.

Placer Dome Incorporated, 1998, Placer Dome annual report 1997: Vancouver, B.C.,

Canada, Placer Dome Incorporated, p. 29.

Platt’s Metals Week, 1997a, Australia’s bank sells gold: Platt’s Metals Week, v. 68,

no. 28, July 14, p. 15.

———1997b, India eases gold import rules: Platt’s Metals Week, v. 68, no. 1,

January 6, p. 11.

———1998, Indian gold jewelry exports below target: Platt’s Metals Week, v. 69,

no. 15, April 13, p. 15-16.

Rio Tinto Limited, 1998, Rio Tinto Limited annual report 1997: London, England,

Rio Tinto Limited, p. 39.

Siskon Gold Corporation, 1997, Form 10QSB: Washington, DC, U.S. Securities and

Exchange Commission, p. 2.

Swainbank, R.C., Bundtzen, T.K., Clough, A.H., and Henning, M.W., 1998, Alaska’s

mineral industry 1997: Alaska Division of Geology and Geophysics Survey

Special Report 51, September, 75 p.

Thomas, P.R., and Boyle, E.H., Jr., 1986, Gold availability appraisal: U.S. Bureau

of Mines Information Circular 9070, p. 6.

Viceroy Resource Company, 1998, Viceroy Resource annual report 1997:

Vancouver, Canada, Viceroy Resource Company, p. 8.

Wilburn, D.R., 1998, Exploration: Mining Engineering, v. 50, no. 5, May, p. 51-60.

World Gold Council, 1998, U. S. gold jewelry retail sales annual report for 1997:

New York, NY, World Gold Council, p. 2.

SOURCES OF INFORMATION

U.S. Geological Survey Publications

Gold. Ch. in Mineral Commodity Summaries, annual.2

Gold. Ch. in Minerals Yearbook, annual.2

Gold. Ch. in United States mineral resources, U.S. Geological

2Prior to January 1996, published by the U.S. Bureau of Mines.
GOLD—1997 33.7

Survey Professional Paper 820, 1973.

Precious metals. Mineral Industry Surveys, monthly.2

Principal gold-producing districts of the United States, U.S.

Geological Survey Professional Paper 610, 1968.

Other

American Metal Market, daily.

Canadian Mines Handbook 1996-97.

Engineering and Mining Journal, monthly.

Gold Ch. in Mineral facts and problems, U.S. Bureau of Mines

Bulletin 675, 1985.

Jewelers’ Circular-Keystone, monthly.

Mining Journal, biweekly.

Platt’s Metals Week, weekly.

Randol Mining Directory 1996-97.

The Mining Record, weekly.

The Northern Miner, weekly.

World gold—A minerals availability appraisal, U.S. Bureau of

Mines Special Publication SP 24-94, 1994.
TABLE 1

SALIENT GOLD STATISTICS 1/

1993 1994 1995 1996 1997

United States:

 Mine production kilograms 331,000 327,000 317,000 326,000 r/ 360,000

 Value thousands $3,840,000 $4,050,000 $3,950,000 $4,090,000 r/ $3,850,000

 Gold recovered by cyanidation:

 Extracted in vats, tanks, and closed containers 2/ kilograms 185,000 r/ 169,000 157,000 r/ 168,000 r/ 196,000

 Leached in open heaps or dumps 3/ do. 120,000 r/ 119,000 121,000 r/ 125,000 r/ 133,000

 Refinery production:

 Ores, concentrates and dore do. 243,000 241,000 4/ (4/) (4/) 270,000

 Recycled materials (new and old scrap) do. 152,000 148,000 4/ (4/) (4/) 100,000

 Imports for consumption:

 Refined do. 130,000 96,400 111,000 143,000 194,000

 Exports:

 Refined do. 658,000 334,000 277,000 406,000 391,000

 Net deliveries from foreign stocks in

 Federal Reserve Bank of New York do. 582,000 217,000 244,000 373,000 143,000

 Stocks, December 31:

 Industry 5/ do. 34,400 32,700 4/ (4/) (4/) (4/)

 Commodity Exchange (Comex) 6/ do. 78,500 49,100 45,400 20,700 15,200

 Department of the Treasury 7/ metric tons 8,140 8,140 8,140 8,140 8,140

 Volume of U.S. Gold Futures Trading 8/ do. 25,500 26,400 24,200 14,300 29,700

 Department of the Treasury: 9/

 American Eagle gold coin kilograms 21,800 10,900 13,900 10,700 20,000

 Other Numismatic gold coins do. 2,250 852 1,150 1,190 500

 Consumption in industry and the arts do. 91,400 76,100 4/ (4/) (4/) 137,000

 Apparent demand, refined 10/ do. 363,000 294,000 4/ (4/) (4/) 265,000

 Price: Average per troy ounce 11/ $361.00 $385.00 $386.00 $389.00 $332.00

 Employment, mine and mill only 12/ 14,700 14,100 14,700 16,900 16,300

 World:

 Production, mine kilograms 2,280,000 r/ 2,270,000 r/ 2,250,000 r/ 2,310,000 r/ 2,420,000 e/

 Official bullion reserves 13/ metric tons 34,900 34,800 34,600 34,400 34,000

e/ Estimated. r/ Revised. 

1/ Data are rounded to three significant digits, except prices.

2/ May include small quantities recovered by gravity methods.

3/ May include tailings, waste-ore dumps, and previously mined ore at some inactive mines.

4/ Data under review.

5/ Unfabricated refined gold held by refiners, fabricators, dealers, and the U.S. Department of Defense.

6/ Comex Division of the New York Mercantile Exchange.

7/ Includes gold in Exchange Stabilization Fund.

8/ Comex only.

9/ Sales to market in fiscal year 1990; thereafter, bullion disbursements to U.S. Mint coin programs. Fiscal year begins October 1, of year prior to year

indicated.

10/ Defined as refinery production from primary materials + refinery production from old scrap + net bullion flow to market from foreign stocks at the 

New York Federal Reserve Bank + net imports of bullion. Assumed to include gold held for investment purposes. Excludes gold contained in fabricated items,

imported coins, and official monetary gold.

11/ Engelhard Industries quotation.

12/ Data from Mine Safety and Health Administration.

13/ Held by central banks and governments and international monetary organizations. Data from International Monetary Fund.
TABLE 2

MINE PRODUCTION OF GOLD IN THE UNITED STATES, BY STATE 1/

(Kilograms)

State 1996 1997

Alaska 2/ 5,020 16,300

Arizona 2,990 r/ 2,140

California 24,200 r/ 24,400

Idaho 10,800 r/ 7,490

Montana 9,440 r/ 10,200

Nevada 215,000 r/ 243,000

South Dakota W 16,400

Washington W 4,040

Other States 3/ 58,400 r/ 36,200

 Total 326,000 r/ 360,000

r/ Revised. W Withheld to avoid disclosing company proprietary data; included with "Other States."

1/ Data are rounded to three significant digits; may not add to totals shown.

2/ Production data collected by the State. 

3/ Includes Colorado, New Mexico, South Carolina, Utah, Wisconsin, and States indicated by symbol "W."

TABLE 3

LEADING GOLD-PRODUCING MINES IN THE UNITED STATES IN 1997, IN ORDER OF OUTPUT 1/

(Kilograms)

Rank Mine County and State Operator Gold produced 1/

1 Carlin Mines Complex Eureka and Elko, NV Newmont Gold Co. 84,900

2 Betze-Post/Goldstrike Eureka, NV Barrick Gold Corp. 49,900

3 Bingham Canyon Salt Lake, UT Kennecott Utah Copper 18,800

4 Meikle/Goldstrike Eureka, NV Barrick Gold Corp. 17,900

5 Round Mountain Nye, NV Round Mountain Gold Corp. 14,900

6 Cortez Lander, NV Placer Dome (U.S.) Inc. 12,700

7 Homestake Lawrence, SD Homestake Mining Co. 12,300

8 Fort Knox Fairbanks North Star, AK Amax Gold Inc. 9,970

9 Jerritt Canyon Elko, NV Independence Mining Co. 9,950

10 Cresson Teller, CO Cripple Creek & Victor 7,100

11 Mesquite Imperial, CA Santa Fe Pacific Gold Corp. 7,090

12 Bullfrog Nye, NV Barrick Gold Corp. 6,430

13 McCoy/Cove Lander, NV Echo Bay Mines 5,820

14 Getchell Humboldt, NV FirstMiss Gold Inc. 5,590

15 Florida Canyon Lander, NV Pegasus Gold Inc. 5,080

16 Golden Sunlight Jefferson, MT Placer Dome (U.S.) Inc. 4,940

17 Barney's Canyon Salt Lake, UT Kennecott Corp. 4,200

18 Kettle River Ferry, WA Echo Bay Mines 4,040

19 Castle Mountain San Bernardino, CA Viceroy Gold Co. 3,810

20 Ridgeway Fairfield, SC Kennecott Ridgeway Mining Co. 3,760

21 Denton-Rawhide Mineral, NV Kennecott Rawhide Mining Co. 3,700

22 McLaughlin Napa, CA Homestake Mining Co. 3,670

23 Hycroft Humboldt, NV Vista Gold Corp. 3,650

24 Bald Mountain White Pine, NV Placer Dome (U.S.) Inc. 3,530

25 Hayden Hill Lassen, CA Amax Gold Inc. 3,490

26 Beartrack Lemhi, ID Meridian Gold Inc. 3,340

27 Wharf Lawrence, SD Wharf Resources Ltd. 3,210

28 Rand Kern, CA Rand Mining Co. 2,930

29 Rochester Pershing, NV Coeur Rochester Inc. 2,800

30 Montana Tunnels Jefferson, MT Pegasus Gold Inc. 2,440

1/ Data are rounded to three significant digits.

Sources: Company annual reports, company news releases, or U.S. Securities and Exchange Commission's 10K and 6K reports.
TABLE 4

U.S. EXPORTS OF GOLD, BY COUNTRY 1/ 2/

Ore and concentrates 3/ Dore and precipitates Refined bullion Total Waste and scrap

 Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

Year and country (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands)

1996 375 $3,730 65,100 $696,000 406,000 $5,010,000 471,000 5,710,000 89,900 $853,000

1997:

 Belgium -- -- -- -- -- -- -- -- 1,580 17,100

 Canada 242 2,470 9,760 91,400 35,100 414,000 45,100 508,000 31,000 207,000

 China -- -- -- -- 1,120 11,300 1,120 11,300 -- --

 France -- -- -- -- -- -- -- -- 14,300 155,000

 Germany 176 2,050 5 27 4,280 45,100 4,460 47,200 1,800 33,900

 Hong Kong -- -- 1,000 5,390 17,000 175,000 18,000 180,000 2 17

 Italy -- -- (4/) (4/) 61 594 61 594 1,380 11,400

 Japan 1 12 10 65 1,030 10,400 1,040 10,500 15 152

 Korea, Republic of -- -- -- -- 9,180 99,100 9,180 99,100 -- --

 Mexico 1 12 -- -- 12,800 126,000 12,800 126,000 -- --

 Netherlands -- -- 2 15 157 1,680 159 1,690 -- --

 Peru -- -- 42 277 2,440 26,200 2,480 26,500 -- --

 Singapore 1 7 -- -- 596 5,940 597 5,950 -- --

 South Africa -- -- -- -- 760 7,780 760 7,780 -- --

 Sweden -- -- -- -- 1 5 1 5 1,210 13,100

 Switzerland -- -- 44,000 381,000 215,000 2,370,000 259,000 2,750,000 101 920

 Taiwan 2 5 -- -- 5,770 61,900 5,770 61,900 -- --

 Turkey -- -- -- -- 375 3,890 375 3,890 -- --

 United Kingdom 1 9 30,500 260,000 84,600 909,000 115,000 1,170,000 9,100 99,800

 Other 3 32 7 58 737 7,290 747 7,380 19 218

 Total 427 4,600 85,300 738,000 391,000 4,270,000 477,000 5,020,000 60,500 538,000

1/ Data are rounded to three significant digits; may not add to totals shown.

2/ Bullion also moves in both directions between U.S. markets and foreign stocks on deposit in the Federal Reserve Bank. Monetary gold excluded.

3/ Includes base metal ores, concentrates, and matte destined for refining.

4/ Less than 1/2 unit.

Source: Bureau of the Census.
TABLE 5

U.S. IMPORTS FOR CONSUMPTION OF GOLD, BY COUNTRY 1/ 2/

Ores and concentrates 3/ Dore and precipitates Refined bullion Total Waste and scrap

Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value

 Year and country (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands) (kilograms) (thousands)

1996 3,460 $42,200 11,900 $117,000 143,000 $1,780,000 159,000 $1,940,000 13,000 $102,000

1997:

 Antigua and Barbuda -- -- -- -- -- -- -- -- 75 1,040

 Argentina -- -- 62 517 -- -- 62 517 (4/) (4/)

 Australia 247 2,560 878 7,290 125 2,410 1,250 12,300 14 34

 Austria (4/) (4/) (4/) (4/) 535 2,870 535 2,870 (4/) (4/)

 Belgium -- -- -- -- 3,280 37,000 3,280 37,000 11 41

 Bolivia -- -- -- -- 143 1,550 143 1,550 81 440

 Brazil -- -- -- -- 32,600 351,000 32,600 351,000 -- --

 Canada 31 216 2,260 17,000 106,000 1,170,000 108,000 1,190,000 1,710 6,070

 Chile 54 531 1,690 7,020 5,920 64,500 7,670 72,000 15 254

 China (4/) (4/) -- -- -- -- (4/) (4/) 87 1,140

 Colombia -- -- -- -- 5,140 54,700 5,140 54,700 663 4,330

 Costa Rica -- -- -- -- 80 682 80 682 883 5,360

 Dominican Republic -- -- -- -- 334 3,340 334 3,340 4,480 25,500

 Ecuador -- -- 35 337 615 6,420 650 6,760 285 1,440

 France -- -- -- -- 25 266 25 266 186 989

 Germany -- -- -- -- 26 168 26 168 67 354

 Guyana -- -- -- -- 326 3,240 326 3,240 426 794

 Korea, Republic of -- -- -- -- 1,910 21,400 1,910 21,400 158 1,610

 Malaysia -- -- 50 276 -- -- 50 276 595 4,020

 Mexico 1,380 15,100 8,500 83,300 2,030 21,200 11,900 120,000 2,500 14,000

 Netherlands Antilles -- -- -- -- 2,350 25,500 2,350 25,500 322 3,370

 Nicaragua -- -- -- -- 1,470 13,800 1,470 13,800 -- --

 Norway -- -- -- -- 401 4,380 401 4,380 -- --

 Panama -- -- 85 883 350 3,440 435 4,320 128 867

 Peru -- -- 132 1,150 7,350 75,500 7,480 76,600 89 634

 Philippines -- -- -- -- 12 220 12 220 103 436

 Russia -- -- -- -- 31 380 31 380 -- --

 South Africa -- -- 4 40 514 4,790 518 4,830 -- --

 Switzerland -- -- -- -- 13,300 143,000 13,300 143,000 (4/) (4/)

 Taiwan -- -- -- -- -- -- -- -- 172 1,430

 Trinidad and Tobago -- -- -- -- 113 1,240 113 1,240 17 174

 United Kingdom -- -- -- -- 4,540 50,400 4,540 50,400 4 48

 Uruguay -- -- 21 323 3,850 42,600 3,870 42,900 -- --

 Venezuela -- -- -- -- 38 438 38 438 -- --

 Other (4/) 7 30 291 365 3,790 395 4,090 1,100 4,190

 Total 1,710 18,400 13,700 118,000 194,000 2,110,000 209,000 2,250,000 14,100 78,600

1/ Data are rounded to three significant digits; may not add to totals shown.

2/ Bullion also moves in both directions between U.S. markets and foreign stocks on deposit in the Federal Reserve Bank. Monetary gold excluded.

3/ Includes base metal ores, concentrates, and matte destined for refining.

4/ Less than 1/2 unit.

Source: Bureau of the Census.
TABLE 6

GOLD: WORLD MINE PRODUCTION, BY COUNTRY 1/ 2/ 

(Kilograms)

Country 1993 1994 1995 1996 1997 e/

Argentina 937 937 837 723 r/ 725 p/

Armenia e/ 200 100 300 244 r/ 3/ 500

Australia 247,196 256,188 253,504 289,530 r/ 311,360 3/

Belize e/ 2 5 5 5 5

Bolivia 10,423 12,838 14,405 12,634 r/ 11,400

Botswana 192 234 r/ 86 5 r/ 10

Brazil 4/ 69,894 r/ 70,535 64,424 r/ 60,011 r/ 59,000

Bulgaria e/ 2,000 2,000 3,100 r/ 3,390 r/ 3,400

Burkina Faso e/ 5/ 5,000 4,000 3,000 4,000 4,000

Burundi e/ 20 1,000 r/ 2,000 r/ 2,200 r/ 1,500

Burma 63 70 90 160 100 3/

Cameroon e/ 1,000 r/ 1,000 r/ 1,000 1,000 1,000

Canada 152,929 146,428 152,032 r/ 166,378 r/ 169,050 p/

Central African Republic 153 138 120 e/ 90 e/ 90

Chile 33,638 38,786 44,585 r/ 53,174 r/ 49,500

China e/ 130,000 132,000 140,000 145,000 175,000

Colombia 27,471 20,762 21,165 r/ 22,073 r/ 18,810 3/

Congo (Brazzaville) e/ 5 12 r/ 12 r/ 10 r/ 10

Congo (Kinshasa) e/ 6/ 8,700 r/ 11,100 r/ 10,000 r/ 8,200 r/ 8,000 p/

Costa Rica e/ 260 r/ 358 3/ 400 r/ 500 500

Cote d'Ivoire 1,500 r/ e/ 1,860 1,983 1,000 r/ e/ 1,000

Cuba -- 45 184 250 e/ 250

Czech Republic 512 75 -- -- -- 3/

Dominican Republic 247 r/ 1,538 r/ 3,281 r/ 3,659 r/ 2,349 3/

Ecuador e/ 5/ 12,500 13,000 15,500 17,700 r/ 3/ 17,000

Eritrea XX 78 59 98 100

Ethiopia 7/ 3,387 2,370 4,500 2,500 r/ e/ 2,500

Fiji 3,713 r/ 4,111 r/ 3,511 r/ 4,554 r/ 4,200

Finland 1,385 1,372 2,061 r/ 3,070 r/ 3,000

France 3,034 r/ 5,078 r/ 4,615 5,651 r/ 5,700

French Guiana (Guyane) e/ 2,800 2,270 3,000 3/ 3,000 3,000

Gabon 8/ 120 72 70 e/ 70 e/ 70

Georgia e/ 1,000 600 500 500 700

Ghana 38,911 r/ 43,478 r/ 53,087 r/ 49,211 r/ 52,000

Guatemala e/ 30 30 30 30 30

Guinea 3,864 r/ 5,617 7,863 r/ 6,838 r/ 7,000

Guyana 9,614 11,811 9,331 12,441 12,500

Honduras 111 106 110 e/ 142 150

India 9/ 2,003 2,244 2,203 r/ 2,449 r/ 2,500

Indonesia 10/ 42,097 42,600 62,909 r/ 65,000 e/ 68,000

Iran 417 723 370 r/ 242 r/ 250 p/

Japan 9,352 9,551 9,185 8,627 8,166 3/

Kazakstan e/ 20,000 r/ 14,483 r/ 3/ 18,200 r/ 12,000 r/ 12,000

Kenya e/ 154 3/ 155 170 300 r/ 300

Korea, North e/ 5,000 5,000 5,000 5,000 5,000

Korea, Republic of 9/ 25,000 e/ 12,332 13,418 14,096 14,872 3/

Kyrgyzstan e/ 1,000 838 r/ 850 r/ 1,500 r/ 17,400

Liberia e/ 700 700 r/ 800 r/ 700 700

Madagascar e/ 500 500 38 r/ 3/ 50 r/ 50

Malaysia 4,462 4,085 3,161 2,830 4,488 3/

Mali e/ 5,500 6,200 r/ 7,800 8,400 r/ 8,500

Mauritania 1,264 1,738 1,196 1,200 e/ 1,200

Mexico 9,792 r/ 13,888 20,292 24,477 r/ 26,001 3/

Mongolia e/ 1,200 2,000 4,800 5,300 8,451 3/

Morocco 600 565 580 580 e/ 600

Mozambique 149 6,804 r/ 6,800 r/ 6,000 r/ e/ 6,000

Namibia 1,954 2,445 r/ 2,394 r/ 2,145 r/ 2,433 3/

New Zealand 11,161 10,118 12,132 11,571 r/ 11,500

Nicaragua 1,188 r/ 1,241 r/ 1,316 r/ 1,500 r/ e/ 1,800

Niger e/ 1 1 1 1 1

Nigeria 1 5 5 e/ 6 e/ 6

Norway 800 200 -- -- -- 3/

See footnotes at end of table.
TABLE 6--Continued

GOLD: WORLD MINE PRODUCTION, BY COUNTRY 1/ 2/ 

(Kilograms)

Country 1993 1994 1995 1996 1997 e/

Oman 90 137 591 576 575 p/

Panama e/ 255 245 1,100 807 r/ 3/ 1,550

Papua New Guinea 61,671 r/ 59,286 r/ 53,405 r/ 51,119 r/ 47,500

Peru 11/ 30,318 47,799 r/ 57,744 64,788 r/ 76,822 3/

Philippines 21,155 27,059 27,144 31,800 r/ 33,800 3/

Poland 450 628 510 598 600 3/

Romania e/ 4,000 3/ 4,000 4,000 4,000 4,000

Russia 149,500 146,600 132,170 123,000 r/ 115,000

Rwanda e/ 1,000 100 26 r/ 25 r/ 25

Saudi Arabia 7,519 7,630 8,080 8,302 r/ 8,500

Senegal e/ 550 r/ 550 r/ 550 r/ 600 r/ 550

Serbia and Montenegro 3,325 2,504 3,040 3,000 e/ 3,000

Sierra Leone 12/ 157 125 4 16 20

Slovakia 100 372 518 540 458 3/

Solomon Islands 30 r/ 31 r/ 25 r/ 25 r/ e/ 25

South Africa 619,201 580,201 523,809 497,583 483,443 3/

Spain 6,083 5,852 4,131 r/ 3,128 r/ 3,200

Sudan e/ 1,600 3,000 3,700 4,500 r/ 5,000

Suriname e/ 300 300 300 300 300

Sweden 6,548 6,364 6,528 6,500 e/ 6,500

Taiwan 9/ 1 r/ 5 11 r/ 11 r/ 11

Tajikistan e/ 1,000 r/ 1,000 r/ 1,000 r/ 1,100 r/ 2,550

Tanzania 3,264 r/ 2,861 r/ 320 r/ 318 r/ 300 p/

Turkey e/ 13/ 1,110 3/ 996 1,200 r/ 1,200 r/ 1,200

Uganda 291 1,627 1,506 2,954 3,000

United States 331,000 327,000 317,000 326,000 r/ 360,000 3/

Uruguay e/ 300 300 900 1,000 r/ 2,000

Uzbekistan e/ 70,000 70,000 70,000 72,000 75,000

Venezuela 8,985 r/ 10,094 7,110 r/ 11,719 r/ 19,661 3/

Vietnam e/ 10,000 3/ 10,000 10,000 10,000 10,000

Zambia 14/ 235 124 91 r/ 100 r/ e/ 100

Zimbabwe 18,916 20,512 23,959 24,772 25,000

 Total 2,280,000 r/ 2,270,000 r/ 2,250,000 r/ 2,310,000 r/ 2,420,000

e/ Estimated. p/ Preliminary. r/ Revised. XX Not applicable.

1/ World totals, U.S. data, and estimated data are rounded to three significant digits; may not add to totals shown.

2/ Table includes data available through July 15, 1998.

3/ Reported figure.

4/ Officially reported figures are as follows, in kilograms: Major companies: 1993--39,894; 1994--40,188; 1995--40,951; 1996--41,142; and 1997--

41,000 (estimated). Garimpos 1993--30,000; 1994--30,347; 1995--23,473 (revised); 1996--18,869 (revised); and 1997--18,000 (estimated).

5/ Includes undocumented artisanal production.

6/ Formerly Zaire.

7/ Year ending July 7 of that stated.

8/ Undocumented artisanal production.

9/ Refinery output.

10/ Excludes production from so-called people's mines, which may be as much as 18,000 kilograms per year, but includes gold recovered as byproduct

of copper mining.

11/ Includes documented production from placer artisanal production.

12/ Data are based on official exports and do not reflect gold moved through undocumented channels.

13/ Indicates byproduct of base metals.

14/ Year beginning April 1 of that stated. Byproduct of copper production by Zambia Consolidated Copper Mines Ltd. only. Some additional artisanal

production was reported, but data are insufficient to make reliable estimates.