Mineral revenue for the first quarter of 2011 was about US$ 1.2 billion, up by 47% compared to the same period of 2010 figure of US$ 809.9 million, the latest Ghana Chamber of Mines figures have revealed.
The industry performance was greatly driven by healthy outturn of gold and manganese product segments except bauxite and diamond.
However, the dip in purchases of diamond was compensated for by the prices of the mineral resulting in its positive revenue variance.
The sharp decline in shipments of bauxite could not be helped by the relatively higher realized price of the mineral.
“Whilst the global economic situation appeared favourable to Ghana’s mining industry, the country appeared not to have taken advantage of the situation optimally. The creeping rebound of the economies of some emerging and industrial nations have witnessed a revival in demand for industrial minerals.
“It is however gratifying that, most gold mining companies have continued with their expansion programmes, whilst new production is on stream. In this regard, the gold mining sub-sector is favourably disposed to the healthy conditions,” the Chamber of Mines said.
B&FT has gathered that the total investment inflow into the mining sector in 2010 was US$770 million, up from the US$762 million that was recorded in 2009.he investment came from producing, exploration and support service companies.
Cumulatively, the investment inflow into the sector from 2000 to 2010 stood at approximately US$6.2 billion.
“The year looks promising for the mining industry. Additional production from new mines -Adamus Resources and Owere Mines - as well as the prospects that Owere Mines will increase production beyond the marginal output increases arising out of existing mine expansion projects,” said Daniel Owiredu, President of the Chamber.
“The expected higher volumes of mineral production and strengthening of the gold price is expected to result in increased mineral revenue, with a corresponding increase in mineral royalties and corporate tax payment to government,” added Owiredu.
He explained that mining firms have to spend huge sums of money to secure their concessions due to the illegal mining menace in the country.
Regarding the review of mining contracts, Owiredu said: “Since mining agreements provide certainty to the investor, the Chamber is looking forward to its members concluding the discussions with government expeditiously - having due regard to the fact that commodity prices such as those relating to gold are cyclical.”
The total mineral revenue rose significantly from US$2.93billion in 2009 to US$3.73billion in 2010, representing an increase of 27 percent - mainly on the account of healthy price of gold, although the other minerals also recorded increases in prices during the period.
The mining sub-sector grew remarkably, by 11.2 percent compared to the 6.8 percent it recorded in 2009. By this growth performance, the industry came second behind the electricity sub-sector which grew by 16.7 percent in 2010.
In 2010, mining companies returned about 68 percent of the US$3.7billion mineral revenue to the country through the Bank of Ghana (BoG) and the private commercial banks.
An average of 20 percent was repatriated to the country through BoG and the remaining 48 percent through private banks. This ensured that the country receives considerable foreign exchange from the mining sector to support the nation’s foreign currency transactions.
Last year, the industry spent US$ 865million, representing about 27 percent of its total funds to procure inputs locally - including diesel and electrical power.
In addition, the mining sub-sector contributed about GH¢520 million to the Ghana Revenue Authority (GRA), representing 21 percent of total GRA collections in 2010.
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