Mining companies in Ghana make $4.6b revenue from gold sales in 2011

Revenue made from gold mined in Ghana and sold on the international market was $4.6 billion in 2011, up from $3.6 billion in 2010, according to figures released June 6, 2012 by the Ghana Chamber of Mines.

Despite a fall in gold production by 2% from 2,970,079 ounces in 2010 to 2,924,385 ounces in 2011, the Chamber said gold revenue increased by 28% in 2011 due to rising price of the metal.

“Gold revenue increased by 28% from $3,620,766,467 in 2010 to $4,630,255,619 in 2011 due to an increase in the average realized price of gold which appreciated by 30% from $1,219 per ounce in 2010 to $1,583 per ounce in 2011.

The average aggregated cash cost was $751 per ounce in 2011 compared with the $684 recorded in 2010, an increase of 9.8%, according to Chamber which is an umbrella body for miners such as Goldfields, AngloGold, Newmont Gold among others.

Gold Fields’ Tarkwa mine maintained its position as the leading producer of gold in Ghana, according to the report.

The report indicated that Precious Minerals and Marketing Company’s (PMMC) total purchases and export of gold from small-scale miners decreased by 32% from 346,861 ounces in 2010 to 235,787 ounces in 2011.

Accordingly, PMMC’s exports accounted for only 25% of the volume exported by that segment of the market in 2011, it added.

Asap-Vasa, a wholly Ghanaian-owned gold refinery also exported 10,173 ounces of gold in 2011 compared with the 17,133 ounces in 2010 representing a decrease of over 40% over the same period.

By Ekow Quandzie