A recent data released by the World Bank shows Ghana is now the leading gold producer on the African continent, toppling South Africa which has held the title for many years now.

According to the Ghana Chamber of Mines, gold output gold output jumped 12 percent in 2018, as the industry is benefitting from lower-cost mines, friendlier policies and new development projects. The country cut corporate taxes in 2016 and in 2017 changed Gold Fields’ mineral royalty to a sliding scale based on the gold price, from a 5 percent flat rate.

“The government of Ghana’s 10 percent free-carry stake in all mining companies provides a level of security to the investment,” said Sven Lunsche, spokesman for Gold Fields.

Output in the country is expected to get a further boost when AngloGold Ashanti’s Obuasi operation, previously overrun by illegal miners, restarts later this year. Production from Obuasi is forecast at 350,000 to 450,000 ounces of gold annually during the first 10 years.

Open-pit quarry

Meanwhile, output is shrinking in South Africa owing to high cost of production, regular strikes from workers and geological challenges.

South African industry stalwarts AngloGold Ashanti Ltd. and Gold Fields Ltd. are shifting their focus to other countries, including Ghana, where deposits are cheaper and easier to mine. The largest remaining gold miner in South Africa, Sibanye Gold Ltd., is cutting thousands of jobs and diversifying into platinum-group metals as it struggles to contain costs.

Australia and South Africa boast the largest reserves kin the world, with the former having deposits of about 9,800 MT and the latter 6000 MT. Ghana’s reserves is at 1000 MT.

Green Views congratulates Ghana as it is ready to offer a comfortable and luxurious accommodation to the expatriate community.

Source: Bloomberg