SOLOMON ISLANDS could be amongst the top 100 gold exporting countries in the world, if government agencies kept accurate records on the annual export of the precious metal.
Poor record keeping is blamed for mineral exports over the years, robbing the government of tens of millions of export dollars. Coordination is said to be weakest amongst government agencies responsible for the export of the yellow stuff.
A discovery of new gold deposits on Guadalcanal has set gold apart as an economic development player. According to the find, the deposit could sustain the country for over 30 years. Revenue could be as high as $2 billion a year or more, according to sources who attended a recent briefing on the matter.
The potential for Solomon Islands to climb the gold export ladder even higher is there.
In 2022 for example, we exported gold valued at USD24.2 million, making the country the 120th largest gold exporter in the world, according to a report in the daily galaxy
(https://dailygalaxy.com/2025/01/here-are-the-7-countries-with-the-most-gold-mines-in-the-world/)
That is the value of 30, 900 ounces of gold exported that year, according to the 2023 Annual Report of the Central Bank of Solomon Islands (CBSI).
That figure may not reflect the true amount of gold going out each year. It is not clear whether measures are being taken to strengthen record keeping.
Customs officials reportedly foiled a senior government minister allegedly trying to smuggle about 2kg of gold out of the country last year. The Minister gave in after he was convinced, he could be charged in the incident which allegedly occurred at the Henderson International Airport in November/December 2024.
Gold has earned its place in the global economy. So much so that even our own CBSI has adopted a Gold Investment Policy.
“In line with best practice and CBSI Gold Investment policy, gold forms part of the reserves as a strategic asset to maintain stability, diversify reserves and enhance monetary autonomy and for investments and gold trading.
“The framework also specifies that gold holdings should not be more than 10 per cent of the total foreign reserves. As gold has a strong negative correlation to the US dollar making it a good hedge against US dollar assets,” CBSI 2023 Annual Report said.
As a result of this conviction, the CBSI in 2023 “actively trades in unallocated gold (paper gold) amidst economic uncertainties for income optimization. A total of 30,900 ounces of unallocated gold bought at varying prices from USD $1,600- $2,040 and all purchases were sold before end of 2023 at higher prices.
“With gold price hovers above $2000/oz level for quite a period of time, this allows gold purchased below USD1,700 prices traded at good margin, leading to gold trading income target recorded $10.4 million, a record achievement surpassing the 2023 target,” the report said.
The Governor of the Central Bank, Luke Forau also acknowledged the contribution gold made to the economy.
“Economic growth rebounded strongly to 4 per cent from a slower growth of 2.4 per cent in 2022. This was driven by a surge in gold exports … Governor Dr. Forau said in the Foreword to the 2023 Annual Report.
“A total of 30,900 ounces of unallocated gold bought at varying prices from. USD $1,600- $2,040 and all purchases were sold before end of 2023,” a news report issued at the time, said.
Uncertainty over President Trump’s trade policy is certain to drive gold prices up to or above the USD2,700 an ounce level.
Gold production is booming globally, according to the Observatory of Economic Complexity, which released the list of seven leading gold production countries in the world.
“Gold production is booming globally, with Australia leading the pack. Its production accounts for over 50 per cent of their exports, it said. Statistics buffs would care to note how each country navigates economic challenges while keeping this precious metal in the spotlight.
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Gold—one of Earth’s rare gems—plays a unique role in the global economy. As a valuable asset for many countries, it acts as a safety net for investors, especially during geopolitical upheavals that cause economic jitters. Beyond its financial importance, gold is prized for jewellery, currency, bullion, and tech applications, the report said.
Australia’s leading the way in gold production with a whopping 12,000 tons churned out in 2023. This achievement highlights Australia’s stronghold on the global mining stage. Gold is big business here, making up over 50 per cent of exports and adding 8 per cent of the GDP. Major mines like Newmont’s Boddington, Newcrest’s Cadia, and Newmont’s Tanami play key roles in keeping this momentum,” Observatory of Economic Complexity, reported.
The vast reserves and smooth operations have catapulted Australia into the top tier of global producers. These mines not only boost local economies but also cement Australia’s position as a major player on the world stage, it said.
2. What’s Russia’s Gold Game?
Russia isn’t far behind with 11,100 tons produced in 2023, holding its spot as Europe’s top supplier since 2010. The Russian government is a major consumer at home (buying up much of its own output). However, sanctions after invading Ukraine have thrown some wrenches into their economic gears,” the Report said.
“Siberia’s Olimpiada mine is crucial to Russia’s output, accounting for 20% of national production. Despite geopolitical roadblocks, Russia remains a heavyweight in the gold market.
3. South Africa: Still Shining Bright?
In 2023, South Africa put out 5,000 tons of gold, keeping its crown as Africa’s top producer even though it’s no longer leading globally. Known historically for its rich deposits, South Africa still plays a vital role on the continent.
The East Rand mine in Boksburg stands tall as South Africa’s largest mine at depths of 3,585 meters (that’s deep!). Though facing competition from other African nations, South Africa’s legacy and contributions are still noteworthy.
4. Can the U.S. Keep Up?
The United States cranked out 3,000 tons of gold in 2023, with Nevada and Colorado seeing significant increases. Back in 2021 alone, Nevada was responsible for an impressive 80 per cent of U.S. production. Areas like Alaska and the western states continue pushing production forward.
This effort underscores an economic impact marked by $9 billion worth of net exports back in 2021. The U.S.’s strategic push to ramp up output ensures it stays relevant globally.
5. China’s Environmental Balancing Act
China matched U.S.’s numbers with 3,000 tons produced in 2023, yet faced hurdles due to strict environmental laws causing dwindling reserves and closures.
“Once the biggest consumer worldwide, China’s shift towards sustainability is reshaping how it mines. Even with these challenges, China’s dedication to eco-friendly mining could set new standards industry-wide down the road, the report said.
6. Indonesia: More Than Just Gold
Indonesia chipped in with 2,600 tons, featuring one of the world’s largest mines—the Grasberg—in Papua. Mining plays a pivotal part beyond just extracting gold—it drives Indonesia’s economy forward too.
This Southeast Asian nation skilfully uses its natural resources while juggling environmental concerns alongside growth goals.
7. Brazil: Old Roots Meet New Challenges
Brazil delivered 2,400 tons, focusing heavily on regions like Amazon and Pará states. With roots tracing back to colonial times, Brazil now tackles modern issues like illegal mining activities and environmental impacts within its vast rainforests.
Efforts are underway to tackle these problems while cherishing Brazil’s rich historical ties with this precious metal.
The ever-changing landscape of global gold production showcases each country’s unique contributions despite diverse challenges—from geopolitical tensions affecting economies like Russia or green regulations reshaping industries such as China—gold remains deeply woven both economically & culturally worldwide.