The new mines are expected to help push gold production output from the projected 4 million ounces in 2023 to over 4.5 million ounces this year.

Ghana last year reclaimed its status as the leading gold producer in Africa after losing that position to South Africa in 2021.

This was after the country’s gold production increased by 32 per cent from 2.8 million ounces in 2021 to 3.7 million ounces in the third quarter of 2023, with the full-year production figure expected to be around 4 million ounces. The production figure for 2022 was 3.4 million ounces.

At a stakeholder breakfast meeting with the Ghana Chamber of Mines and the Minerals Commission, Mr Jinapor said the government was not resting on its laurels but putting in place measures to consolidate this position.

He said there have been significant investments in the construction of new mines and the redevelopment of existing ones, which was welcoming because for the country to maintain this position, it would require investments in new mines and investments in exploration.

“The Bibiani Mine, which had been dormant for seven years, was revived in 2022, and we are looking forward to new mines coming on stream, including Cardinal Namdini, which has committed to pour its first gold this year, Azumah Resources and Newmont Ahafo North.

“When all of this comes on board, it will mean that our status as the leading producer will be consolidated and in the foreseeable future, we will continue to be the lead producer,” he stated.

That, he said, would further increase the contribution of mining to the economy, and help create more jobs as well. 

Data from the Bank of Ghana shows that as of August 2023, gold alone had contributed some US$4.67 billion in exports, which represents 43.4 per cent of total exports. 

The minister said the government was also putting in efforts to get the best out of the small-scale mining sector, noting that in 2023, the country recorded the highest export of gold from that sector in the past three years. He said that was largely due to the reduction of the tax on unprocessed gold, which took great efforts from all stakeholders to get it done.

Diversification 

Mr Jinapor also noted that the government was, however, not only concentrating on gold as it was also working to diversify the country’s mineral resources base. 

He said work on the integrated aluminium and iron and steel industries was progressing steadily, noting that the Ghana Integrated Aluminium Development Corporation (GIADEC) had completed mineral resource estimation for Nyinahini Block 1, and had identified an investor for Nyinahini Block 2, with the agreement due to be signed next week. 

He said the Ghana Integrated Iron and Steel Development Corporation (GIISDEC) had also taken delivery of a drill rig to commence mineral resource estimation for iron ore in the Oti Region.

“In terms of value addition, generally, we are working around the clock to secure London Bullion Market Association (LBMA) Certification for our refinery established through a public-private partnership. “We are also working with Ghana Manganese Company to establish a refinery for the manganese we produce. We were in China late last year to inspect their refinery there, and, hopefully, work will start very soon on the construction of the refinery, here in our country,” he stated.

Gold price performance The President of the Ghana Chamber of Mines, Joshua Mortoti, said the faster-than-expected recovery of the global economy and reversal of disruptions to the global supply chain contributed to lowering the global inflation outlook.

He said that in turn led to a gradual decline in the rate of increase in interest rate of most central banks, which enhanced the yield on gold and gold-backed assets. As a result, he said the average traded price of gold increased from $1,800 per ounce in 2022 to $1,940 per ounce in 2023, which translated into a growth rate of eight per cent, which was a marked improvement over the 0.08 per cent year-on-year increase in the previous year.

On cost performance, he said the challenges that confronted domestic gold producers manifested in an escalation in the cost of production. 

“The benchmark metric for measuring the cost of producing an ounce of gold, all-in-sustaining cost (AISC), rose from $1.380 per ounce as of the end of the third quarter of 2022 to $1.513 per ounce as of the end of the third quarter of 2023,” he noted. He said the cost increases were attributable to price inflation of mining consumables, lower grade, and deeper mines, as well as impacts of the government’s fiscal imposts.

“The 10 per cent increase in cost, which is more than the growth rate in the price of gold in the corresponding period and the faster growth in production cost relative to price implies a narrowing of the margins of the mines. This situation impacts negatively on the sustainability and competitiveness of the mining industry, as well as its continued ability to support the development of mining communities and the larger country,” he said.