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Thursday, 21st September 2006 (3217 views)

Underwater gold mining has come under scrutiny from market analysts and observers who are still unsure whether the new systems could solve the industry's problems of under-supply.

Aquatic gold has been touted by many mining enthusiasts and producers as a way to improve the dwindling reserves and stocks of the precious metal as exploration continues to underwhelm.

Currently an operation is underway off the coast of Papua New Guinea that will extract up to two million tons of rock from which to extract gold to be put to market.

As quoted on the Free Market News Network, Roland Watson of newerainvestors.com queried the wisdom of pursuing this method of gold mining and production.

"I wonder how far global gold production would have declined before this form of mining begins to have an impact," he said.

"It reminds me of the oil strikes in the deep waters of the Gulf of Mexico. This was a bonanza for America but once again it did nothing to stop the decline in American cude oil production."

Mr Watson added that it took around 30 years to establish deep-sea oil strikes in order to provide less than a quarter of its respective market.

 

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