Miners anticipate boost to gold output

The Ghana Chamber of Mines expects a rise in 2012 gold production, after full-year gold production in 2011 declined by marginally.

“Gold output last year came down 2 to 3% compared to the year before, and the decline could have been deeper but for the fact that Australian miner Adamus Resources poured its first gold in January last year.

“Two more mines are expected to come on-stream this year and we also anticipate that Adamus will increase its production. So we are going to see production go up this year,” Ghana Chamber of Mines Chief Executive Dr. Toni Aubynn, said.

Meanwhile, Mr. Daniel Owiredu, President of the Chamber, predicted a mixed outlook for the country’s mining industry this year, expecting gold to sustain its good performance in the global market while bauxite and manganese exports could fall as a result of a decline in demand.

“The coming year looks promising for the mining industry. Additional production from new mines and the prospects from the Owere Mines are expected to bring in increased production.

“The expected higher volumes of mineral production and the strengthening of gold prices are expected to result in increased mineral revenue, with a corresponding increase in mineral royalties and corporate-tax payment to government,” Owiredu said.

In the first half of 2011 the country produced 1,497,023 ounces, up 3% over the same period of 2010 -- with revenues jumping 31% to US$2.2billion on the back of higher gold prices.

Output was originally rising in 2011, but in the end shrunk since a number of firms focused on longer-term maintenance and expansion projects rather than maximising existing production.

According to the Chamber, the total investment inflow into the mining sector in 2010 was US$770million -- up from the US$762million which was recorded in 2009.

Cumulatively, the investment inflow into the sector from 2000 to 2010 stood at approximately US$6.2billion. Total mineral revenues rose significantly from US$2.93billion in 2009 to US$3.73billion in 2010, representing an increase of 27% -- mainly on the account of healthy prices of gold.

The country’s largest mine --Tarkwa Gold Mine owned by Gold Fields Ltd -- operates six open pits, two heap leach facilities, and a CIL plant.

Tarkwa has a mineral resource of 15.3 million gold ounces and a mineral reserve of 9.9 million ounces. In 2010, Tarkwa produced 720,700 ounces of gold. For the 12-months to end-June 2011 the outlook for Tarkwa was to produce between 720,000 and 760,000 ounces of gold.

Gold Fields also owns the Damang mine, located in south-western Ghana, about 300 kilometres west of Accra. The Damang Gold Mine has a mineral resource of 4.7 million gold ounces and a mineral reserve of 2.1 million ounces.

AngloGold Ashanti’s Obuasi mine operation produced 383,000 ounces last year. The company expects the mine to produce around 400,000 ounces of gold in 2012.

AngloGold also owns the Iduapriem Mine, which produces an average of 190,000 ounces of gold per year.

Bibiani Gold mine, owned by Noble Mineral Resources, is located in the Western Region and operates an open-pit mine that was brought into operation in 1998 in the Sefwi-Bibiani belt.

This contains more than 17 million ounces of gold. The Sefwi-Bibiani belt is the second most significant gold- bearing belt in the country. Noble Resources plans a US$9million drilling programme over the next three years.

Golden Star Resources, which has two operating mines, poured its two-millionth ounce of gold from the Bogoso/Pretea and Wassa mines in 2009.

The Bogoso/Pretea project, in which Golden Star has a 90 percent interest (Ghana government owns the remaining 10%), consists of approximately 85km in mining and exploration concessions.

Keegan Resources, another miner, has two premier gold assets in the country. Keegan's flagship property is the Esaase gold deposit. Updated resource calculations indicate 2.025 million ounces of gold buried in the deposit.

Development studies are currently underway that will enable the project to be brought quickly to production stage. Keegan is also exploring a second project, the Asumura gold property, expected to be the largest and most productive gold structure in the country.