Ghana’s mining sector to be worth $1.83b in 2016 – Report
Ghana’s mining sector is expected to reach a value of $1.83 billion in 2016, according to the Ghana Mining Report – Fourth Quarter 2012.
The Report by research company Research and Markets says the sector will increase from $1.21 billion in 2010 “as bauxite and gold production see substantial increases.”
The Report argues; “This marks a significant break from the past decade where the mining sector value has barely risen as gold output has declined, offsetting much of the increases in price. We expect gold to be the main driver of growth, but bauxite to play a growing role in the mining sector over the coming years,” it said.
Ghana contains the second-largest area of gold deposits in the African region after South Africa, the Report said, adding that the nation derives the bulk of its external revenue from gold mining, which accounts for over 90% of Ghana’s total mineral exports.
“Apart from gold, Ghana also produces significant quantities of bauxite, manganese and diamonds, although diamond output has been affected in recent years by the closure of Ghana Consolidated Diamonds in 2007,” the Report said.
According to the Report, Ghana is set to remain Africa’s second-largest gold producer after South Africa as investment continues to flow into the mineral rich country.
“In addition, the country boasts one of the most favourable business environments in the region with a democratic and stable government, which contrasts sharply with many of its resources-rich neighbours,” it said.
According to Ghana’s Minister of Lands and Natural Resources, Mike Hammah, mining has contributed 27.6 percent to total government revenue and 42 percent of total merchandise exports in 2011.
Mr. Hammah was also cited by the Ghana News Agency in a report saying between 2009 and 2011 the investment inflow for Ghana’s mining sector was $2.5 billion.
He also said gold production increased consistently; 3.1 million ounces in 2009, 3.4 million ounces in 2010 and 3.6 million ounces in 2011 which is the highest gold production ever in Ghana.
By Emmanuel K. Dogbevi