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Ghana's total mineral revenue up
by 28%
Masahudu Ankiilu Kunateh, Ghanadot
Accra, June 1, Ghanadot - Ghana's
total mineral revenue rose from $1,794,396,677 in 2007 to
$2,303,928,866 in 2008, representing an increase of 28%.
The country's gold revenue was up 29% from $1,711,511,381 to
$2,202,878,021 in the same period. The rise was a result of the
appreciation in gold output by 4% from 2,486,821 ounces in 2007
to 2,585,913 ounces in 2008 as well as an increase in average
realized price of gold by 23.78% from $688 per ounce in 2007 to
$852 in 2008.
While, global gold output dropped substantially by 4%,
year-on-year, from 2,473 tonnes in 2007 to 2,385 tonnes in 2008.
The manganese sector in the country contributed albeit
marginally to the total mineral revenue increase, the mineral
having realized an appreciation in revenue by 69% in 2008
compared with 2007.
The rise in gold production was on account of increased
production at Golden Star Bogoso, Newmont Ahafo, Gold Fields
Damang, Central African Gold, Anglo Gold Ashanti (AGA) Iduapriem
and Gold Fields Tarkwa.
Precious Mineral Marketing Company (PMMC) purchases from small
scale miners during the year under review fell by 15.37% whilst
Chirano Gold Mines recorded a 12.26% decline in production.
The Iduapriem mine of Anglo Gold produced 200,139 ounces of gold
in 2008 compared with the 185,158 ounces output in 2007,
representing an increase of 8%.
Anglo Gold Ashanti Obuasi's output was down one percent from
359,961 ounces in 2007 to 357,102 ounces in 2008. The marginal
declined of one percent was on account of a decrease in
underground volumes and the grade mined.
Cumulatively, the Anglo Gold Group produced a total of 557,241
ounces of gold making a 2% increase above the 545,119 ounces
produced in 2007.
Gold production at Golden Star Bogoso Prestea increase sharply
by 33.2% from 127,994 ounces in 2007 to 170,485 ounces in 2008.
Furthermore, the Golden Star Bogoso Prestea increased its gold
output mainly due to improved recovery rates at the BIOX plant.
The company's BIOX pant having had its first full year of
production in 2008 since the sulfide processing plant was put
into production in 2007.
However, Golden Star Wassa recorded a marginal drop in
production of 0.5% from 126,045 ounces in 2007 to 125,438 ounces
in 2008.
Together, the Golden Star Group produced 295,923 ounces of gold
in 2008, a 16.5% increase on that of 2007.
Chirano Gold Mine's production of 119,776 ounces was a decline
of 12% on the 136,414 ounces it produced in 2007. The lower gold
production of Chirano Gold Mines was on account of lower grade
ore mined, following a pit wall failure at the higher grade Tano
pit.
During the year, Gold Fields Tarkwa's gold production was up
from 654,352 ounces in 2007 to 659,308 ounces in 2008, a
marginal increase of one percent.
Gold Fields Damang mine on the other hand recorded an increase
in output of 10% from 179,439 ounces in 2007 to 197,025 ounces
in 2008. The company's increased production was due to the
mining of higher grade ore as well as the addition of an extra
leach tank to the processing circuit. The total output of the
Gold Fields Group was therefore up by 3% to 856,333 ounces in
2008 compared with the 833,791 ounces produced in 2007.
The outturn at Central African Gold was 30, 186 ounces in 2008.
This was 26% more than the 23,915 ounces produced in 2007.
Production at Newmont Ahafo's mine in 2008 was 524,000 ounces.
This was 15% above the 454,212 ounces produced in 2007. The
increase in production was due to a 25% increase in mill ore
grade and higher throughput.
The total tonnes mined rose from 44.2million tonnes in 2007 to
50.6million tonnes in 2008. This was facilitated by the
installation of additional equipment, increased mining
efficiencies and the operation of a third pit.
PMMC's purchases and exports of diamond from small scale miners
were down 28% from 837,586 carats in 2007 to 598,042 carats in
2008. Manganes shipments declined from 1,172,555 tonnes in 2007
to 1,089,024 tonnes in 2008, a decrease of 7%.
However, manganese revenue rose by an outstanding 69% from
$36,831,651 in 2007 to $62,348,266, last year.
The exceptional performance of manganese was on account of a
strategic decision of the Ghana Manganese Company Limited to
revise its marketing and operational targets, resulting in on
average, lower volumes and grades of exports, better pricing,
more efficiency and longer life of mine.
Contrary, bauxite shipments from Ghana Bauxite Company was down
7.25% from 748,232 tonnes in 2007 to 693,991 tonnes in 2008;
conversely, baxite revenue increased from $19,686,731 to
$19,810,287, an increase of one percent.
At the just ended 81st Annual General Meeting of the Ghana
Chamber of Mines, the President of the Chamber, Mr. Jurgen
Eijgendaal disclosed that for the first time in about a decade,
Ghana moved up to become the nineth highest gold producing
country according to the Gold Fields Mineral Survey (GFMS) log.
Also, the mining industry accounted for about 43.7% of gross
export revenue, reinforcing its position as the country's
leading export earner and a major contributor to the country's
balance of payment position in 2008.
To add up, the mining and quarrying sectors contributed GH¢179,978,382
to Ghana's Internal Revenue Service's (IRS') collections in
2008. This figure represents 14.72% of the total IRS
collections, last year, making the industry, the 3rd highest
contributor to IRS's collections, behind the Public
Administration and Defence and Financial International sectors.
The GH¢73,554,696 the mining and quarrying sector paid to the
IRS for coporate tax was 13.25% of the total company tax,
withholding tax and levies the IRS collected in 2008.
By this impressive performance, the sector became the third
highest payer of corporate tax in 2008, whilst the communication
and financial international sectors leading the pack in that
order.
However, players of the mining industry complained of
skyrocketing price of inputs. This was especially reflected in
the cash cost of gold producing companies.
As aggregated average cash cost of gold producers rose from $489
per ounce in 2007 to $651 per ounce in 2008, an increase of
33.13%.
The major cost drivers of the mining industry were diesel fuel,
electric power and labour. Whilst the cost of diesel to the
mines largely mirrored global prices, the mines had to pay
significant premium on power, even in the period when the price
of light crude oil had fallen sharply and the hydro component of
the power generation mix had increased appreciably. Thus, whilst
the realized price of gold increased by 23%, the cast cost of
gold producers appreciated by 33,13%.
Ghanadot
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