The gold mining sector faltered

The World Gold Council has confirmed that large-scale gold mining is capital intensive and requires significant exploration and development, with it taking an average of 10 to 20 years before a mine (TADAWUL:4162) is ready for production.

Even during exploration, the likelihood of a discovery being turned into a development mine is low, with only about 10% of global gold discoveries containing enough of the metal to justify mining.

So far, about 187,000 tons of gold have been extracted, most of it coming from China, South Africa and Australia. Extractable gold reserves are estimated at approximately 57,000 tons, according to the United States Geological Survey.

In addition to the discovery process, government permits have become more difficult to obtain and take longer, making mining more difficult, Reed noted. However, securing the necessary licenses and permits before mining companies can begin operations may take several years.

In addition, many mining projects are planned for remote areas that require infrastructure such as roads, power and water, resulting in additional costs in constructing these mines and financing operations, Reid said.

Gold prices had fallen after rising to record levels in recent months, driven by strong demand led by China. With the difficulty of producing gold