Ghana’s gold export industry is set for a stellar year, with the Minerals Commission predicting gold exports could reach a record $10 billion by the end of 2024. Martin Ayisi, the CEO of the Minerals Commission, shared that the country’s gold exports totaled an impressive $5 billion in the first half of 2024. This amount accounts for 54% of the total export value of $9.2 billion.
The surge in gold exports is largely due to a significant rise in gold prices, especially in the second quarter of the year, and increased production from both small and large mining operations. In the second quarter of 2024, gold prices averaged $2,338 per ounce, marking an 18% increase from the previous year and a 13% rise from the previous quarter. The trend continued into July, with prices averaging $2,396 per ounce, and hitting a record $2,482 per ounce on July 17. Ayisi is confident that if gold prices stay high, the annual export value could surpass $10 billion.
A large part of this growth comes from small-scale mining operations, which contributed about $1.7 billion to gold exports in the first half of 2024. This sector, making up about 36% of the total gold exports by mid-year, is expected to contribute even more, possibly exceeding $3 billion by year-end.
Ayisi emphasized that the mining sector is crucial to Ghana’s economy, calling it the backbone of the country’s economic structure. However, he also highlighted the need for value addition within the mining industry. While exporting raw minerals is beneficial, refining and adding value to these resources within the country can significantly boost their economic value. He mentioned examples like lithium, bauxite, and manganese, suggesting that refining these minerals locally would greatly enhance their worth.
One such value addition initiative is the Ghana Manganese Company’s plan to build a $450 million refinery. This facility aims to increase the manganese ore grade from 27% to 40%, creating 350 new jobs and boosting national revenue. Ayisi praised the government’s strong policy on value addition, which supports such projects and maximizes the economic benefits of mining.
Additionally, Ayisi talked about new measures to increase local content and participation in the mining sector. Over $2 billion is spent annually by mining companies on local supplies and services, and the government wants more of this spending to benefit Ghanaian businesses. They are also encouraging mining companies to list on the Ghana Stock Exchange to raise local capital for mining projects. Along with the Minerals Income Investment Fund (MIIF) acquiring equity stakes in mines, these efforts aim to boost state and Ghanaian involvement in the sector.
Lastly, Ayisi stressed on the importance of better environmental management in small-scale mining operations. With small-scale mining happening in about 12 regions and supporting around three million livelihoods, sustainable practices are necessary to prevent long-term environmental damage.
