Ghana's mineral sector poised for significant growth in 2024

Ghana's mining sector is expected to see significant growth in 2024, driven by gold production.

Gold production is expected to range between 4.3 million ounces and 4.5 million ounces, driven by increased output from both large and small-scale producers. Large-scale gold mining firms are expected to produce 3.4 million ounces. New projects, including Newmont's Ahafo North and Cardinal Resource's Namdini Gold Mine, will contribute to this growth.

This was made known by the president of the Ghana Chamber of Mines, Mr. Michael Akafia, at the Chamber's AGM in Accra.

He noted that the mining sector presents a promising outlook for the country's mineral sector in 2024.

According to the Chamber, Manganese production is forecasted to reach 5 million tonnes, while bauxite production is expected to range between 1.2 million tonnes and 1.5 million tonnes. Diamond exports are also expected to increase, with an estimated 220,000 carats to 250,000 carats.

"This growth is a testament to the sector's resilience and potential for expansion. However, some large-scale mines may experience a reduction in output due to life-of-mine-related factors," he observed.

This growth in gold production, along with increases in manganese, bauxite, and diamond production, is expected to contribute significantly to Ghana's economy. In 2023, the mining sector contributed significantly to Ghana's foreign exchange supply, with mineral export receipts increasing from US$6.8 billion in 2022 to US$7.8 billion in 2023. Gold contributed US$7.6 billion to this amount.

The sector also spent US$7.29 billion in the local economy, exceeding mineral revenue, with significant expenditure on non-energy goods and services, electricity, diesel, salaries, taxes, and corporate social investment.

Akafia stressed that, contrary to media reports, a large portion of mineral revenue (59.1%) was paid to the state, higher than the 25.8% recorded in 2022. The president used the opportunity to commend member companies for their resilience in the face of economic, fiscal, and legal challenges.

"The mining sector is crucial to Ghana's economy, and the Chamber is committed to ensuring sustainable growth through strategic stakeholder engagements and communication initiatives," he assured.

He further stressed that the sector's operations aim to be beacons of best practices in sustainable and responsible mining across the continent, contributing significantly to Ghana's economic growth.

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