EconomyNews

Ghana’s gold industry poised for success

…with projected 4m-oz in 2023

The national output of gold is expected to exceed 4 million ounces in 2023 from 3.7 million in 2022 chiefly from investments in new mines, President of the Ghana Chamber of Mines, Mr. Joshua Mortoti has revealed.

Ghana’s gold production inched up to 32 percent from 2.8 million ounces in 2021 to 3.7 million ounces in 2022, driving the country to the apex as the continent’s largest producer of precious yellow metal.

The nation’s gold production, which rose by 32 percent from 2.8 million ounces in 2021 to 3.7 million ounces in 2022, had reclaimed the top spot after yielding it to South Africa in the preceding year.

The Chamber anticipates that the 2023 output will be the highest in three years, consolidating Ghana’s position as the leading gold producer in Africa.

Mr. Mortoti revealed that gold output from Chamber-producing member companies is estimated to increase from 3.0 million ounces in the previous year to 3.5 million ounces in 2023.

Looking ahead to 2024, the projection indicates a further boost to 3.5 million ounces, driven mainly by fresh production from the Cardinal Namdini Gold Mine. This new output is expected to partially compensate for the projected decline in production from established mines such as Newmont’s Akyem Mine and Gold Fields’ Damang Mine, both approaching the end of their operational life.

Speaking to members at a ‘Breakfast Meeting with the Minister of Lands and Natural Resources’ in Accra, he said “On the whole, the Chamber expects the country’s total gold output to exceed 4 million ounces in 2023. This would be the highest in three years and would consolidate Ghana’s position as the

largest gold producer on the continent.”

Further, he disclosed that gold output from Chamber-producing member companies is estimated to increase from 3.0 million last year to 3.5 million ounces for the year.

Moreover, he remarked that mining sector’s economic contribution has witnessed substantial growth, with its value added to the economy increasing from Gh₵9.4 billion at the end of the third quarter of 2022 to Gh₵13.8 billion by the end of the third quarter of 2023. In terms of its share in the gross domestic product (GDP), the mining sector’s contribution has marginally improved from 6.5 percent in 2022 to 7.01 percent in 2023.

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, emphasized that substantial investments in constructing new mines and redeveloping existing ones will solidify Ghana’s status as a leading gold producer.

Notable mentions include the revival of the dormant Bibiani Mine in 2022 and the upcoming operations of Cardinal Namdini, Azumah Resources, and Newmont Ahafo North.

Data from the Bank of Ghana underscores the economic significance of gold, contributing approximately US$4.67 billion in exports as of August 2023, constituting 43.4% of the country’s total exports.

By Eugene Davis

Leave a Response