Gold drives up revenues

Cummulative mineral revenue for the first half of 2012 was US$2.76 billion -- up by 19% as against US$2.313billion recorded in the half-year of 2011.

“The impressive first-half performance was largely on the back of the performance of mineral revenue from gold and bauxite, despite the dip in reveue from diamond and manganese,” Dr. Toni Aubynn, CEO of the Chamber, disclosed to B&FT.

Gold, which has in recent times seen a remarkable increase in world price, saw an appreciation in revenue of 20%. The metal recorded US$2.69billion for the half -year, as against US$2.24billion for the first half of 2011.

Gold production was up by 6%.  This is attributed to the fresh production from Perseus Mining Ghana Ltd and Adamus Resources, which commenced production in the second quarter of 2011.

On the other hand, bauxite increased significantly by 82% on account of the substantial rise in shipments of the ore, which went up by 71%. Shipments rose from 173,601 tonnes in the half-year of 2011 to 295,993 tonnes for the same period in 2012.

Diamond purchase dipped significantly by 33% from 185,557 carats in the first-half of 2011 to 123,699 carats of the same period in 2012.

Manganese shipments saw a decline by 25%, and this translated into a slump in manganese rev

enue by 24% -- from US$61,489,236 in the first half of 2011 to US$46,981,229 for the same period in 2012.

“The performance of the mining industry in the area of production six months through the year has been mixed, but the generally significant increase in revenue confirms mining’s continuous position as a key fortress for the country’s economy.

“The industry, which has been a major contributor to the economy, witnessed an increase in the overall minerals revenue while output and shipments of some of the product segments recorded negative variances,” Dr. Aubynn said.

He anticipated a rise in this year’s gold production, after full-year gold production in 2011 declined marginally.

Total investment inflow into the country’s mining sub-sector increased from US$770million in 2010 to US$780million in 2011.  

High gold prices are motivating mining firms to increase production. New companies have also come on-stream. The higher rates make it profitable for mining companies to mine low-grade ore.

Gold output last year came down two to three percent 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.