Mining: Small scale gold production surges by 70.6%; large scale declines by 4.9% in 2023

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Mining: Small scale gold production surges by 70.6%; large scale declines by 4.9% in 2023

Small scale mining recorded a major increase of 70.6% in the production of gold from 0.66 million ounces to 1.1 million ounces in 2023.

According to a report by the Ghana Chamber of Mines, the development can be attributed to a number of policies including the review of withholding tax on unprocessed gold and the Gold for Oil Programme.

“Regarding the small-scale sub-sector, the output growth was consistent with the recovery trajectory that followed the halving of the withholding tax on unprocessed gold, from 3.0% in 2021 to 1.5% in 2022,” the report said.

“Further, the introduction of the Government of Ghana’s Gold for Oil programme in 2023 effectively relieved small-scale miners from the payment of the impost,” it added.

Again the boom in the sector is attributed to a common trend in an election year.

On the contrary, large scale gold production declined by 6% to2.9 million ounces in 2023.

The report attributed the reduction to a steep decline “in the production of Gold Field’s Damang Mine, Newmont’s Akyem Mine, Galiano’s Asanko Mine, Adamus Resource’s Nzema Mine, FGR’s Bogoso Prestea Mine and AngloGold Ashanti’s Obuasi Mine. The fall in production of the previously cited mines was partly counteracted by the rise in the output of Mensin Gold’s Bibiani Mine, Perseus’ Edikan Mine, Golden Team Mining Company, Earl International Gold Mine, and Akroma Gold Limited.”

In general, Ghana recorded an upturn in the production and export of its traditional minerals in 2023 except for manganese.

Gold production rose from 3.7 million ounces in 2022 to four million ounces in 2023, representing an 8.3% increase, largely driven by the expansion of small-scale mining industry.

Mineral export receipts increased from $6.8 billion in 2022 to $7.8 billion in 2023, with gold contributing $7.6 billion.

Bauxite and diamond revenues also saw significant increases, while manganese export proceeds declined slightly.

Also, data from the Bank of Ghana showed that receipts from the export of minerals improved from $6.8 billion in 2022 to $7.8 billion in 2023.

“The 15.0% growth in mineral revenue was ascribed to the increase in proceeds from the export of all minerals, except manganese”.

Mineral production outlook for 2024

The report also stated that it expects new productions by some members of the Chamber to boost production.

“Ghana’s mineral sector is expected to record broad-based growth in the production and exports of the four traditional minerals. The production of gold is projected to range between 4.3 million ounces and 4.5 million ounces in 2024.”

“Fresh production from Newmont’s Ahafo North project and Cardinal Resource’s Namdini Gold Mine will supplement the planned production of the existing producing member companies’ mines, which will increase the attributable production of the Chamber to a range of 3.1 million ounces to 3.3 million ounces in 2024.”

“The Ghana Manganese Company Ltd, projects to ramp up its production to 5 million tonnes in 2024. Likewise, the volume of bauxite to be produced by Ghana Bauxite Company Ltd is anticipated to range between 1.2 million tonnes to 1.5 million tonnes.”