In the first half of 2024, small-scale mining has significantly bolstered Ghana’s gold production, generating $1.7 billion.
This accounts for approximately 36% of the country’s total gold export revenue of $5 billion.
Mr Martin Ayisi, Chief Executive Officer (CEO) of the Minerals Commission, reported that Ghana’s gold exports reached a record high during this period.
Record gold exports and projections
The substantial revenue increase is attributed to a rise in local gold production from both small and large-scale operations, alongside a surge in global gold prices, particularly in the second quarter.
During this period, gold prices averaged a record $2,338 per ounce, marking an 18% increase year-on-year and a 13% increase quarter-on-quarter.
July saw an average price of $2,396 per ounce, peaking at $2,482 per ounce on July 17, 2024.
Total mineral exports for the first half of the year amounted to $9.2 billion, with gold alone contributing 54%, or $5 billion.
Mr Ayisi is confident that if gold prices remain stable, the full-year revenue from gold exports could reach $10 billion by the end of 2024, with small-scale mining exports potentially exceeding $3 billion.
Economic impact and value addition
Ayisi emphasized that the revenue from gold exports underscores the mining sector’s pivotal role in Ghana’s economy.
However, he highlighted that the real economic benefits lie in value addition.
The government is actively pursuing value addition for minerals such as lithium, bauxite, and manganese, and has plans for local gold refining.
Govt initiatives and local content
Mr Ayisi expressed satisfaction with the government’s strong policy on value addition, particularly regarding manganese.
The Ghana Manganese Company Limited is investing $450 million to build a refinery that will locally process manganese ore, increasing its grade from 27% to 40% and creating an additional 350 jobs.
The CEO highlighted new measures to improve local content and participation in the mining sector, ensuring that over $2 billion spent annually by mining companies on local supplies and services benefit Ghanaians.
Efforts to list mining companies on the Ghana Stock Exchange to raise capital for mining projects were also praised.
Environmental management and sustainability
Mr Ayisi called for better environmental management of small-scale mining operations, which support approximately three million livelihoods across 12 out of 16 regions.
He underscored the need for sustainable practices in small-scale mining to ensure its long-term viability and benefit to the economy.
Ghana’s gold export revenue is on track to reach unprecedented levels, driven by increased local production and soaring global gold prices.
The government’s focus on value addition and local content aims to maximize the economic benefits of the mining sector while promoting sustainable practices to safeguard the industry’s future.
