Papres - Metal Mining - Effect of Revaluation on the Gold-mining Industry

The year 1935 witnessed one of the world's oldest industries—gold mining—attain the stature of a billion dollar business. Preliminary estimates indicate that somewhat over 30,000,000 oz. of gold was produced, the largest output ever recorded and exceeding the previous year by more than 11 per cent. Of this huge total the Witwatersrand field produced about 10,800,000 oz., compared with 10,480,000 oz. in 1934. Russia was apparently the stellar performer, and from incomplete data it appears that between five and five and a half million ounces were produced by the Soviets compared with 4,200,000 last year and 2,814,000 in 1933. The United States nosed Canada out of third place with a production of 3,546,000 oz. against 2,916,000 in 1934, while Canada increased her total from 2,965,000 to 3,291,000 oz. Similarly, gains of lesser magnitude were made in Australia, the Gold Coast and other countries. As a result of great activity in developing outlying areas on the Rand, and the great number of new companies building mills in Canada, Australia, the Gold Coast and the United States, the years 1936 and 1937 should see new high records, as these new producers will more than offset any decline in the older properties. The whole world has become "gold conscious" during the past three years. It has been the subject of innumerable articles by economists and others, but, unfortunately, because of their lack of actual mining knowledge, they have treated the production of gold as a static affair, ignoring geological and technical factors. It is hardly necessary to draw attention to the fact that the world's gold-mining industry was slowly but steadily shrinking in importance, owing to the gradual depletion of known deposits that were profitable to work at costs existing prior to 1929. The International Geological Congress at Pretoria and the League of Nations Committee drew attention to the estimates of the mining experts of the various governments predicting a steady falling off in world production. On the Rand there