Gold Miners Bucking Mining Downtrend with $140 Billion Global Project Development

Researched by Industrial Info Resources (Sugar Land, Texas)--Gold is one of the bright spots for the Mining Industry in 2016 as companies continue to divest non-core or high-cost resources. Most mining companies have implemented cost cutting programs including significant reduction in capital expenditures as they grapple with slowing demand growth and low commodity prices.

Industrial Info is following 1,219 active gold mining projects worldwide, representing $140 billion as part of the Global Mining Project Database. The top 10 countries for gold mining projects are: Canada, the U.S., Mexico, Russia, Colombia, Australia, Peru, Papua New Guinea, South Africa and Indonesia. These countries account for 69% of the value of all mining projects globally.

Click on the link at right to view a chart showing the top 10 countries for active gold mining projects.

The price of gold had been on a steady decline since peaking in 2011 at over $1,800 per ounce, but a price turnaround at the end of 2015 and continued gains in 2016 have given hope to companies that service the mining sector that the yellow metal will provide some much needed business in terms of mining project development in 2016 and 2017. The price of gold has rallied since the beginning of the year and is now hovering around the $1,230 per ounce mark.

Newmont Mining Corporation (NYSE:NEM) (Greenwood Village, Colorado) is one company that is banking on gold. In 2014, it divested a number of assets with costs above $900 per ounce, including the Midas Mine in Nevada, now owned by Klondex Mine Limited (NYSE:KLDX) (Reno, Nevada), and the Jundee Mine in Australia, now owned by Northern Star Resources Limited (Perth, Australia).

Newmont Mining is focusing on investments at lower cost and lower risk assets of under $800 per ounce such as Merian in Suriname, Long Canyon in Nevada and Cripple Creek & Victor (CC&V) in Colorado.

Newmont is scheduled to complete construction and first production at the Merian Mine by the end of the year.

Construction began last year on the new Long Canyon mine in Nevada.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.