Domestic gold production to hit record high
The country is set to surpass four million ounces of gold production this year, maintaining its status as Africa’s top gold producer, according to preliminary data shared by the Minister of Lands and Natural Resources, Samuel Abu Jinapor.
Speaking at the 10th Ghana Mining Industry Awards (GMIA 2024) in Accra, Mr. Jinapor revealed that the first-half of 2024 recorded production exceeding two million ounces, suggesting a robust trajectory for the remainder of the year.
With this development, the minister said: “There is no doubt that we will exceed four million ounces by the close of the year,” emphasising the country’s continued dominance over South Africa in gold production.
The minister also highlighted the economic significance of the mining sector, describing it as the “pillar of our national economy”.
Gold export receipts for the first-half of the year amounted to US$5billion, already surpassing last year’s August total of US$4.67billion. The country is on track to generate over US$10billion in export receipts from gold by year-end, he added.
Mr. Jinapor credited the country’s mining success to strategic expansions and innovations in the industry.
He pointed to projects such as the Cardinal Namdini Gold Mine completed in record time and new ventures like Newmont Ahafo North, Azumah Resources, and the first lithium mine by Atlantic Lithium.
Additionally, the revamping of dormant mines and investments in manganese and gold refineries signal a shift toward value addition in the country’s mining strategy, he indicated.
“President Akufo-Addo’s vision of moving from the old ‘dig and ship’ policy to value addition is taking shape,” Mr. Jinapor said, noting the commissioning of a US$450million manganese refinery at Nsuta in the coming days.
The minister emphasised efforts to ensure Ghanaians derive optimal benefits from the country’s mineral wealth. Revisions to the Local Procurement List have increased the retention of US$3billion annually within the local economy.
Meanwhile, the Gold for Oil (Gold4Oil) initiative, he said, accounted for over 30 percent of crude oil consumption in its first year.
The Bank of Ghana’s Domestic Gold Purchase Programme has also strengthened the country’s gold reserves, growing from 8.77 tonnes in 2021 to 65.4 tonnes as of August 2024. These developments, Mr. Jinapor noted, showcase the government’s commitment to inclusive and sustainable growth in the mining sector.
While recognising the progress and outstanding performances in the mining sector, Mr. Jinapor stressed the need for Ghana to maximise the sector’s potential.
“Our goal, going forward, should be how to maximise the potential benefit from the sector, ensuring that the mining industry stimulates broad-based sustainable growth that is internally driven by local content, value addition and linkages to other sectors of the economy,” he said.
The minister made key recommendations for the sector’s future development. He urged the next government to address the issue of Value Added Tax (VAT) on exploration activities and collaborate with the Chamber of Mines to resolve the matter.
Additionally, he emphasised the importance of security for mining operations, recommending that special forces be deployed to protect mines, as outlined in recommendations to the Ministerial Committee of the National Security Council.
Mr. Jinapor also called on the Ghana Chamber of Mines and its members to prioritise the development of the local communities where they operate, linking community satisfaction to the security and sustainability of the mines. “If the local community is happy, the mines would definitely be safe,” he noted.
The 10th edition of GMIA was organised by the Ghana Chamber of Mines, under the theme ‘Celebrating A Decade of Rewarding Mining Excellence’.
The Chief Executive Officer (CEO) of the Chamber, Dr. Sulemanu Koney, reckoned: “Over these ten years, the GMIA has evolved from humble beginnings to become a hallmark of distinction in the mining sector”.
The awards, he said, highlight performance in key areas such as environmental stewardship, innovation, green mining, corporate social investment, local content and diversity and inclusion.
“The accolades to be presented tonight are the result of years of dedication, collaboration and a relentless pursuit of excellence. These awards motivate industry players to refine their operations,” he stated.
Also, the First Vice President of the Chamber, Mr. Frederick Attakumah, recognised the contribution of the sector to the economy. It contributed GH₵11.69billion in fiscal revenue, solidifying its position as the largest source of direct domestic revenue.
Member-companies of the Chamber, he added, returned US$4.2billion to Ghana out of the US$5.9billion earned in total mineral revenues.
In all, a total of 25 companies and individuals were awarded, with AngloGold Ashanti Iduapriem Mine emerging as the Mining Company of the Year.