Revenue from gold dips in 2015
Revenue from gold production slowed from US$3.84 billion in 2014 to US$3.32 billion in 2015. This represents a decline of 14 per cent.
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The decline was as a result of a plunge in production and the persistent fall in gold prices on the international market.
For instance, total gold output dropped from 3.1 million ounces in 2014 to 2.8 million ounces in 2015. The steep decline, according to the Ghana Chamber of Mines, was as a result of decline in production at AngloGold Ashanti; Obuasi, Golden Star, Bogoso Prestea; Abosso Goldfields; Golden Star, Wassa, Chirano; and the Newmont Ahafo mines.
Exports of gold subsequently reduced by 10 per cent in 2015. The pass-through effect of the country's energy crisis also had a toll on operations of mining companies.
Speaking at the 88th annual general meeting in Accra, the President of the chamber, Mr Kwame Addo-Kufuor, said in spite of the dip in production and revenue, Ghana maintained its position as the 10th largest producer of gold in the world.
Declining revenues
Proceeds from the export of minerals reduced from US$3.94 billion in 2014 to US$3.39 billion in 2015.
The reduction in revenue, according to him, was as a result of reduced production and price and purchase of gold and in the shipment of manganese.
"While the latter (manganese) recorded a five per cent dip in total shipments, the volume of gold exports also reduced by 10 per cent. Similarly, purchase of diamond by Precious Minerals and Marketing Company (PMMC) decreased by 28 per cent," he said.
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Purchase of other minerals
Purchase of gold by PMMC from small-scale miners in 2015 inched upwards to more than 267,000 ounces from 265,000 in 2014.
Mr Addo-Kufuor said PMMC, the sole buyer from small scale miners, reported a 28 per cent 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 corresponding revenue of US$10.7 million and US$6.4 million respectively.
“Ghana Manganese Company’s (GMC’s) export of manganese reduced from over 1.35 million tons to 1.28 million tons in 2015. The decline in exports reflects the inability of the company’s major client to lift manganese in 2014 and the early part of 2015. Accordingly, GMC’s revenue declined from US$91.1 million over the period,” he said.
Threat of illegal mining
The activities of illegal miners on the concessions of certain large-scale mines remain a concern for the chamber.
The Chief Executive Officer of the Ghana Chamber of Mines, Mr Sulemanu Koney, said in 2015, the concession of some of its member companies were encroached by illegal miners.
“This uneasy situation does not only deprive our members of the opportunity to prudentially extract the inherent mineral resources on their bona fide concessions, but also bequeath them with rehabilitative costs,” he said.
He added that the chamber would deepen its collaboration with the state security agencies to abate the incidence of illegal mining on the concessions of member companies.
Mining policy
The Minister for Lands and Natural Resources, Nii Osah Mills, said Ghana had unveiled its Minerals and Mining Policy to address various concerns in the mining industry and to ensure that mining contributed to the sustainable development of the country.