TORONTO (miningweekly.com) – The World Gold Council (WGC) has released the second edition of its ‘Responsible gold mining and value distribution’ report, covering 2013 data, highlighting the continuing contribution responsible gold mining makes in supporting economic development in host countries.

The report was published on Thursday at the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development, in Geneva.

As well as providing greater transparency and consistency on the data and analysis companies provided to investors and stakeholders on the economic impact of gold mining, the report offered real-life examples of how responsible mining could make a positive contribution to national infrastructure, businesses and local communities in host countries.

Based on data from 15 WGC members, of the $47-billion paid out last year, almost 80% of that total spend ($37.4-billion) was incurred in the country of operation. From that spend, $26.4-billion (71%) went to suppliers, $6.3-billion (17%) to wages and $4.7-billion (12%) to the respective government in taxes and royalties.

A further $3.8-billion was paid to capital providers, including dividends and interest.

“Collaborative efforts from a range of stakeholders are needed to support sustained social and economic development. This report shows the continuing commitment of responsible gold miners to help stakeholders understand the economics of mining.

“By developing a consistent and transparent approach to reporting costs and providing comprehensive insights on the monies paid to governments, businesses and employees, the report seeks to address concerns of a ‘trust and data deficit’ and highlight the contribution gold mining companies are making to national economies,” WGC MD of gold for development Terry Heymann said.

The World Bank’s Christopher Sheldon noted that one of the interesting facts in the report was the relative level of payments to suppliers.

“To maximise mining’s contribution to development we need to focus on how these payments to suppliers can benefit local business even more as well as promote economic diversification through the use of local content,” he stated.

“There is a growing trend of collaboration between governments and mining companies. This positive development is the result of work by people directly involved in the industry and better corporate social responsibility policies that have been put in place by mining companies,” Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development chairperson Glenn Gemerts commented.

The WGC had worked with member companies to generate a common ‘Guidance note on expenditure definitions’ – which was used to develop the data in the report. This body of work was intended to provide greater consistency and transparency in the information companies provide to investors and stakeholders about the economics of gold mining and demonstrates responsible miners’ willingness to work collaboratively as an industry to achieve this.

The report drew information from 87 producing gold mines and 60 nonproducing operations, including exploration activities, premine development and closed mine sites, across 26 different countries. The main aim was to support the ongoing dialogue between governments and industry on the transformational potential of responsible gold mining, the WGC pointed out.