There are currently 238 active gold mines in 36 countries on every continent except Antarctica, often in remote and impoverished areas. A World Gold Council report shows that responsible gold mining greatly contributes to many local communities’ economic and social development. 

Gold has been a unique precious metal with great emotional, cultural and financial value throughout history. In addition, gold has an increasing number of technological applications, including in mobile phones, medical test kits and airbags for vehicles. 

Gold resources are also a key source of opportunities in many developing countries. As a World Gold Council report shows, responsible gold mining generates numerous jobs, facilitates the construction of infrastructure, contributes to the development of local communities, and brings in substantial revenues through taxes and royalties. 

Well-paid employment

Analysis of the operations of the 29 member companies of the World Gold Council shows that in 2023 they contributed 57.52 billion euros to their countries’ economies, supporting 212,000 direct jobs and 163,000 businesses. In addition, each job in the gold industry generates another six indirect jobs in the supply chain, or almost that many more if spin-off occupations are included.

Workers in the gold industry are well paid, averaging six times the national average wage. It should be noted that 95 % of the employees belong to the country where the mine is located. The percentage of expatriates has halved in the last seven years. 

Development of local communities

Companies in the sector recognise the mutual benefits of integrating as much as possible into the local economy, using indigenous people and supply chains. This underpins their “licence to operate” and allows the community to benefit from the economic and social development of the mine.  

Indeed, operating in an isolated enclave while ignoring the local community is no longer a viable option for any mining company. To be successful, they must generate sustainable benefits for local people, especially in the poorest and most remote locations, where there are often few alternative avenues for economic activity and community progress. 

This has resulted in World Gold Council member companies spending more than €620 million in community investment by 2023, an increase of €77 million over the previous year. In addition to meeting the needs of a gold mine, it is clear that investments in roads, water supply and electricity will be of long-term benefit to local businesses and communities.

We must add almost €8 billion paid in taxes and royalties, which go back into improving public services, education, health, and infrastructure in the countries where the mines are located. In many developing countries, these taxes constitute a significant proportion of the national tax base and benefit both mining and non-mining areas.

A significant contribution to GDP

In total, the contribution of these companies to the GDP of the 36 countries where they operate is estimated at around 57 billion euros. For every euro of gold production, at least 63 cents ended up as wages, taxes, or income for local business owners.  

While historically mining operations have not always led to improvements in the human and social development of local communities, there is a growing trend towards strict environmental, governance and social protocols as a condition of operating. As a result, the gold industry is becoming an important economic and social driver for many countries around the world. 

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