Proceeds from gold hit US$2.43b

September 29, 2016
Source: Ekow Essabra-Mensah | B&FT Online | Ghana
Proceeds from gold hit US$2.43b

Proceeds from the country’s gold production in the first half of the year rose to US$2.43 billion compared with US$1.75 billion recorded in the same period last year.

Gold production during the period under review stood at 1,993,850 ounces, which represents an increase of 38.6 percent from the production figure of 1,438,656 ounces a year ago.

Diamond production dipped to 96,880 carats in the first half of this year from 106,061 carats last year while manganese rose to 752,782 tonnes compared with 553,549 tonnes.

Latest figures from the Chamber of Mines revealed that output from new mines namely, Asanko mine and Golden Star Wassa’s underground mine boosted the overall production figures.

The Chamber of Mines in a recent announcement disclosed that proceeds from the country’s export of minerals dipped from US$3.94billion in 2014 to US$3.39billion in 2015.

Announcing the figures, Kwame Addo-Kufuor, President of the Chamber, explained that the reduction in minerals revenue was as a result of reduced production and price of gold, and purchases of gold and shipments of manganese.

Whilst manganese recorded a five percent dip in total shipments, the volume of gold exports also reduced by 10 percent.

Purchases of diamond by Precious Minerals and Marketing Company (PMMC) decreased by 28 percent.

The decline is gold production was largely due to the fall in output of member-companies and the average realised gold price.

He mentioned that total gold output dropped from 3.1 million ounces in 2014 to 2.8 million ounces in 2015 as a result of declines in production at AngloGold Ashanti-Obuasi; Golden Star Resources-Bogoso Prestea; Abosso Gold Fields; Golden Star Wassa; Chirano; Newmont Ahafo and purchases by ASAP VASA. AngloGold Ashanti Iduapriem; Gold Fields-Tarkwa; Newmont Akyem; Adamus; Perseus; and PMMC recorded growth in output.

Purchases of gold by PMMC from small-scale miners in 2015 inched upward to more than 267,000 ounces from 265,000 in 2014.

On diamond, Kwame Addo-Kuffour indicated that PMMC - the sole buyer from small-scale miners - reported a 28 percent decrease in its purchases while total purchases and export of diamond decreased from over 240,000 carats in 2014 to about 174,000 carats in 2015, with a corresponding revenue of US$10.7million and US$6.4million respectively.

Ghana Manganese Company’s export of manganese reduced from over 1.35 million tonnes to 1.28million tonnes in 2015.

The decline in exports reflects the inability of the company’s major clients to lift manganese in 2014 and the early part of 2015.  GMC’s revenue declined from US$91.1million to US$70.5million, over the period.