How Gold Is Mined: From Pit to Market

Introduction

Before gold becomes part of a coin, bar, or piece of jewelry, it goes through an extensive journey from deep underground to global markets. This article explores how gold is mined, refined, and brought to market.

Stages of the Gold Supply Chain

1. Exploration and Discovery

Geologists use advanced technology to identify gold-rich regions through satellite imaging and soil analysis. Once a site is confirmed, test drilling is conducted.

2. Mining and Extraction

There are two primary types of gold mining:

• Open-pit mining: Used for shallow deposits; involves removing layers of earth.

• Underground mining: Suitable for deep ore bodies; more labor-intensive and costly.

3. Crushing and Milling

Extracted rocks are crushed and milled into fine particles to separate gold from other minerals.

4. Separation and Refinement

Using chemical processes like cyanidation and flotation, gold is separated from impurities. The result is dore bars – semi-pure gold.

5. Smelting and Purification

Dore bars are melted at high temperatures and purified into 99.5–99.99% pure gold.

6. Assaying and Certification

Refined gold is tested for purity, weighed, and stamped with certification marks before being sold.

Supply Chain to Market

From refineries, gold is distributed via:

• Bullion dealers

• Central banks

• Jewelry manufacturers

• Investment platforms (e.g., for those looking to buy gold online)

Environmental and Ethical Considerations

• Mining has a significant environmental footprint.

• Many companies are adopting ethical gold mining standards, such as using clean technologies and ensuring fair labor practices.

Conclusion

Understanding how gold is mined helps investors appreciate the value behind this precious metal. Each stage in the gold supply chain influences cost, availability, and sustainability.