The global mining market is booming and that is the result of a surge in demand for gold and copper mining, which is still in its infancy.
Gold and copper are becoming increasingly valuable because of a shift to more efficient technology, according to Mark Haldane, senior economist at Aberdeen Asset Management.
“A new generation of miners is becoming more efficient and they are also finding more of the ore to go to gold,” Haldanes said.
The number of new mines opening each year is on the rise, with the total value of gold and silver mined in 2016 up 7.6 percent to $6.7 trillion, according the Minerals Council of Australia.
The total value rose to $7.5 trillion last year.
Gold miners have been finding ore on the global market, thanks to new technologies, a lack of competition and better economics, Haldan said.
“There is no question that mining is one of the fastest growing industries in the world and it has gone up exponentially over the last decade,” he said.
New technologies such as advanced hydraulic fracturing, or fracking, and the use of new metals such as zinc and copper to create more efficient mines, have allowed miners to extract more ore.
“The amount of gold in the mine is the same or slightly higher than it was five years ago, but the gold content of the mine has increased significantly,” Hiddanes said, adding that mining companies are now able to mine the ore in the same way as before.
“And the companies are more efficient, they are cheaper to run, they’re more profitable and they’re getting more bang for their buck,” he added.
“So it’s definitely a positive story.”
Gold prices have been on the move recently and have now recovered slightly from their slump following a record low.
The Australian dollar, the world’s reserve currency, is down 0.3 percent against the dollar, which has been on a tear against the US dollar since early July.
Gold prices are up 4.5 percent since the start of the year, according TOXI data.
The price of copper and zinc have also climbed by about 10 percent, according data from the IAEA.
The International Monetary Fund said on Friday the value of the Australian dollar is on track to hit $1,200 by the end of this year.
Australian mining company GVK is one company that has been picking up the slack from a decline in the value and price of gold.
The company recently announced it will build the world-first gold mining facility in the state of Western Australia, which it said would generate nearly 50,000 jobs and generate an estimated $7 billion in economic activity.GVK chief executive John Anderson said the investment in the facility would allow the company to continue to grow its mining operations in Western Australia while still meeting Australia’s strict environmental requirements.
“Our long-term strategy is to mine a portion of the gold in Western Australian’s Goldfields region, which contains over 300 million tonnes of gold, which can provide the company with a long-run opportunity to grow the business,” he told the ABC.
“We have an opportunity to have the biggest mining operation in the country, to have a massive output, and to have an economic boost for our state.”GVK is also looking at plans to open a gold mine in the Northern Territory, where the mine will also create 50,800 jobs, but has yet to make a final decision.