When undertaken using responsible practices, the gold mining industry has proven to contribute to the social and economic development of many communities worldwide.
A 2020 survey by the World Gold Council found that the industry employed 200,000 people across 31 gold mining companies. These jobs were found to provide six times the national average wage.
The report also found that across the 31 companies, 34.5 million ounces of gold were mined, contributing approximately US$38 billion to the GDP of the countries they operated in. In addition, responsible gold miners also work to boost local economies by employing local employees and contributing to their relative supply chains, supporting their ‘license-to-operate’ and enabling the community to benefit from mines’ economic and social development.
Not only is gold mining a significant economic driver for many countries across the world, but it also brings foreign direct investment and tax revenues to countries. In addition, gold mining companies often operate in remote locations and contribute to the local city’s infrastructure and utilities. In addition to supporting the needs of a gold mine, these improvements to roads, water, and electricity supplies are a long-term benefit to businesses and communities across the area that outlive the production years of a gold mine.
Additionally, as gold miners decarbonize their energy sources, they can also bring cleaner power to local communities and, in some locations, will be a crucial factor in bringing low-carbon electricity to the region, with potential development benefits well beyond the mine. Gold miners frequently partner with host governments, communities, and NGOs in their countries, identifying how best to support more comprehensive social and economic development.
Gold mining companies also have ethical and commercial incentives to improve the health and education of the communities they operate in, with many investing in social infrastructure, including schools, colleges, and health centers, that will enhance the opportunities and well-being of local people. In addition, many miners provide healthcare services to their workforce and surrounding communities—from COVID-19 relief to tackling malaria.
Another benefit that gold has had over the years is its ability to provide a key return on investment. As a result, gold has proven to be a safe haven for investors worldwide across multiple economic downturns and bear markets, with many traders and investors opting to invest in it to protect their capital against value depreciation, which occurs from inflation, causing an increase in general prices.
Zambesi Gold, a thriving business that aims to lead the transition from mining assets to becoming fully backed digital assets, has set out to combine the benefits of both gold mining and cryptocurrency. Self-described in its whitepaper as being “backed by real gold, real people, and real mining operations combined with real value,” the company believes that each asset should contribute to the profitability of a business and not subsidize other assets to reduce the cost of debt. It allows token holders to be the beneficiaries of the Gold Custodian Trust, a vault where physical bullion gets stored.
One of the reasons its founders created Zambesi Gold was to disrupt the current state of the gold mining industry. Traditionally, the amount of gold backing for gold mining houses is often unsuccessful because of high overhead costs, debt, finance, lack of control over commodity prices, and non-compliance.
With its management and overall ability to lead, guide, and influence operation profitability, the company can solve these problems, believing each asset should contribute to the business’s profitability and not subsidize other assets while innovatively using disruptive finance methods to reduce the cost of debt.
Over the decades, the gold mining industry has significantly contributed to economies worldwide by boosting employment while supporting the health and education of its surrounding communities. By combining the benefits of both the gold mining industry and a cryptocurrency, Zambesi Gold believes it can benefit both worlds. To find out about this revolutionary new product, head to Zambesi’s website today!
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.