Central bank easing has driven up gold prices. Here’s what that means for gold mining companies and the people who invest in them.
Central banks around the world have been easing monetary policy as they look to support growth throughout the global economy. From the U.S. Federal Reserve and the European Central Bank to the Bank of England and the Reserve Bank of Australia, developed market central bank authorities are cutting interest rates across the board.
These moves are meant to provide a solid foundation for international trade and broad economic growth, but they’re also having a positive impact on another area of the market: gold. In fact, the precious metal has gained about 16% in value this year, positioning the commodity for its best year since 2010.
For gold mining companies, these gains suggest a strong market for years to come. For those looking to invest further in gold mining, the potential for future gains should be welcomed news. However, gold mining companies should also consider what they can do to invest in the infrastructure that makes their operations possible — such as their critical worksite haul and access roads.
Key Investors Leading the Charge
Current investors have been overjoyed to take part in the dramatically surging value of gold as of late. According to Bloomberg, four billionaires with stakes in gold mining businesses have seen their fortunes grow by $1.8 billion in just this year. These investors indicate that the policies of central banks around the world are to thank for the precious metal’s rising value.
Of these investors, Russia’s Suleiman Kerimov has seen the biggest gains. His family owns 78.6% of Polyus, the largest producer of gold in Russia. Egypt’s Naguib Sawiris comes in second with his stakes in La Mancha Resources. With the price of gold currently hovering around $1,500 per ounce, Sawiris predicts that it will rise another 20% by the end of this year.
What This Means for Mining Companies
A stronger market for gold means that mining companies can expect greater activity in all areas of their global operations. On the ground, this will put increased strain on worksite infrastructure as mining professionals strive to meet surging demand.
For example, the haul and access roads that are crucial to the success of day-to-day operations will see more intensive use. Higher volumes of traffic can cause those roads to degrade and kick up airborne dust, which can be a hazard to both workers’ health and the longevity of the existing roadbed. Any delays that result from such effects can bring operations to a screeching halt, making the care and maintenance of these roads paramount to these companies’ bottom lines.
Investing in Better Gold Mining Infrastructure
Accordingly, mining companies need to ensure that their haul and access roads are maintained and protected through proper dust control — especially as the market for gold sees marked growth. Without doing so, stakeholders run the risk of exposing their workers to airborne dust and delaying the timely arrival of shipments and transport vehicles.
With a custom-designed dust control program built by the experts at Midwest Industrial Supply, Inc., mining companies can solve all of these issues in one fell swoop. Our patented dust control products are backed by more than 40 years of experience helping mining companies maintain and extend the working life of their roads and surfaces. Midwest products and application strategies make it possible to deliver long-term reliability, reduce operating costs, and improve worker health and safety in a cost-efficient way.
Whether you’re looking for dust control to meet air quality compliance standards, improve operating conditions, protect employee health, or some combination of all three, Midwest can help. To get your custom dust control program off the ground and operational, reach out to the team at Midwest today.