Largest and richest gold mine in the world

 The world's Biggest gold mine in the world is worth £30bn 

Gold mining has been a big industry for centuries, with some of the world’s richest deposits found deep underground. Countries with huge gold reserves rely on mining to drive their economies, and demand for the precious metal remains high across the world. Some mines produce only a small amount of gold each year, but others extract thousands of tonnes over their lifetimes.  No gold mine, however, is as productive or valuable as the one in a remote mountain region of Indonesia. The Grasberg mine, located in Indonesia, is the biggest gold mine in the world. It is also the second largest copper mine in the world; the ore mined at Grasberg produces relatively high grades of both metals. The mine contains high grades of both metals. Copper is the primary commodity, with 2.8 billion tonnes of provable copper deposits still available, but another major precious metal mined at Grasberg is silver, with 2.9 million ounces of silver sold in 2016.

The Grasberg mine, located in Papua, Indonesia, is the largest and richest gold mine in the world, producing around 48 tonnes of gold every year. To keep up with demand, the mine operates on a scale unlike any other, with a workforce of around 20,000 people and its own airport, seaport, roads, housing, schools, and a hospital. It is also one of the biggest copper mines globally, with the ore extracted from Grasberg containing high grades of both metals. Grasberg is owned by PT Freeport Indonesia, a joint venture between the Indonesian government and American mining giant Freeport-McMoRan. The facility is located near Puncak Jaya, the highest mountain in Papua, in an area rich in mineral deposits formed by shifting tectonic plates.  For decades, the mine’s most distinctive feature was its mile-wide open pit, but surface deposits have now been largely depleted, shifting production underground.

As the world’s largest gold mine, the Grasberg facility employs a staggering 19,500 workers as of 2021. In order to support the operations and workforce, Grasberg has seaport, 119 km of access roads, a tramway, a hospital, employee housing and schools, along with a number of other support facilities. The mine even reportedly has its own airport. Grasberg now operates three major underground mines, known as Grasberg Block Cave, Deep Mill Level Zone, and Big Gossan. The defining feature of the Grasberg facility is the open-pit mine, with an incredible mile-wide crater. For years, millions of tonnes of ore were dug out from this pit but it has now largely been exhausted. Production is currently centred around underground mining, and the facility has four concentrators to process the huge amount of ore mined every day.

In 2023, Grasberg produced 52.9 tonnes of gold (1.7 million ounces), 680,000 tonnes of copper and 190 tonnes of silver, making it one of the world’s most profitable mining operations. Grasberg’s huge scale means it requires major infrastructure to function. The mine has a dedicated airport to transport workers and equipment in and out of the remote site, as well as a 103-mile pipeline that carries ore to the Amamapare port for processing and export. The mine still holds gold reserves worth an estimated $40 billion (£31 billion), ensuring that it will remain a major producer for years to come. In particular, the Grasberg Block Cave, a recent addition, is expected to see significant growth over next five years, with production reaching an estimated 130,000 metric tons of ore per day. Reserves at Grasberg are estimated to be worth $40 billion and, in 2016 alone, an incredible 1,061,000 ounces of gold was produced. 

   

The mine’s history dates back to 1936, when Dutch geologist Jean Jacques Dozy discovered mineral-rich rocks in the region. However, large-scale mining didn’t begin until the 1960s, when Freeport-McMoRan secured the rights to develop the site. Since then, Grasberg has seen continuous expansion, with billions invested in new tunnels, roads and transport systems. Grasberg is located in Papua, the most eastern province of Indonesia, near Puncak Jaya (the highest mountain in Papua). The area is found in the centre of a collision of the Indo-Australian and Pacific tectonic plates. The confluence of the plate activity gives the area its mineral-rich deposits which help make it the biggest gold mine in the world.

As of 2018, the majority stake in the mine is owned by the Indonesian government, following a long period of disputed claims regarding ownership. The site is operated under licence by the American firm Freeport-McMoRan. Despite its economic importance, Grasberg has also faced controversy. Environmental concerns have been raised over high levels of sediment and heavy metals entering local rivers, while political tensions in the region have led to security issues and attacks on the mine by separatist groups. There have also been worker strikes and disputes over pay and conditions. Despite these challenges, the mine remains one of Indonesia’s most valuable assets, and the government has extended Freeport-McMoRan’s mining lease until 2041. With gold, silver and copper all seeing high prices in 2021 the mine no doubt remains an incredible resource for the companies involved.