While the global demand for gold is expected to grow over the long term, the global mined supply is expected to peak in 2022 before steadily decreasing as ore grades decline and large mining projects reach the end of their lives. The price of gold is not expected to rise at the same rate as demand, so miners will be incentivised to find more efficient and cost-effective ways of extracting gold from this lower-grade ore.
At the same time, mining
companies are under increasing pressure to lower the environmental impact of
their operations, and this trend is set to continue for the foreseeable future.
With environmental regulations tightening worldwide and shareholders becoming
more environmentally conscious, gold miners will be obliged to lower their
greenhouse gas emissions and decrease their use of toxic chemicals such as
cyanide in order to continue to operate. This, along with the need for more
efficient operation, necessitates innovation in the industry.
One of the major developments taking place in
gold mining and in the mining industry generally is the shift to renewable
energy, with gold mining companies such as Polyus already using renewable
energy to power 90% of their gold production. Many gold miners are
investigating new technologies with the potential to facilitate this shift.
Numerous other new and established technologies, aimed at both increasing the
efficiency of gold mines and decreasing their environmental impact, are also
being trialled and used by gold mining companies around the world.