Thursday, 26th May 2005 (3958 views)

The World Gold Council (WGC) has declared that gold mining is becoming more and more important to developing countries, as exports of gold output from heavily indebted countries continues to surge.

According to the organisation, exports of gold output from heavily indebted countries rose by 84 per cent and developing countries produced 72 per cent of the world's gold output in 2004.

In its report, A Touch Of Gold, the WGC said that heavily indebted countries, such as Mali and Ghana, were becoming increasingly dependent on the gold industry, which provides export revenues and "brings substantial improvement" in social and financial infrastructure.

"The gold industry is of tremendous and growing importance to highly indebted countries," WGC chief executive James Burton commented.

Most mining companies try to take on local workers and source supplies locally, the WGC claims. The report found that studies indicate that each mining employee in South Africa supports up to ten people on average.

In 2003, gold was Mali's leading export, responsible for 59 per cent of all goods sent abroad, and was also the leading export for Tanzania (44 per cent), Ghana (32 per cent) and Guyana (26 per cent). Gold is also a key export for other low and lower-middle-income countries, including South Africa, Peru, Kyrgyzstan and Papua New Guinea.

The WGC has recently urged the International Monetary Fund not to sell its gold reserves as a means to fund debt relief for poorer countries, arguing that it would devalue gold, hitting poorer countries hardest.

 

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