Gold Production hits 4.2m ounces in 2012

Gold production climbed 4.2 million ounces in 2012 as compared to 3.6 million ounces recorded in 2011, Mr. Benjamin Aryee, Chief Executive of the Minerals Commission ,has said.

The figure represents a 17 percent increase over the 2011 production figure and is attributed to rising prices and higher output by miners.

Gold prices averaged US$1,668 an ounce in 2012 from US$1,572 an ounce a year earlier.
“Gold prices are still appreciable and motivational enough for mining companies to produce more. The trend will follow as long as gold prices are high,” Mr. Aryee said.

Bauxite rose to 662,925 metric tonnes in 2012 from 410,918 tonnes a year earlier, while Diamond output fell to 215,118 carats from 283,368 carats.

Mining companies’ expressed 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 the result of a decline in demand, Daniel Owiredu, President of the Chamber of Mines, told B&FT.

“The year looks promising for the mining industry. Additional production from new mines --Adamus Resources and the prospects from the Owere Mines -- is expected to bring an increased production beyond the marginal output arising out of existing mine projects.

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

Figures from the Chamber indicate that a total investment inflow into the mining sector in 2010 was US$770million, up from the US$762million that was recorded in 2009.

Cumulatively, the investment inflow into the sector from 2000 to 2010 stood at approximately US$6.2billion.
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 other minerals also recorded increases in price 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.