Mining sub-sector grows by eight per cent in 2009

Accra, May 28, GNA - The mining sub-sector grew at a remarkable rate of eight per cent in 2009 compared to 5.5 per cent recorded in the previous year. According to Ghana Statistical Service (GSS) and the Ministry of Finance and Economic Planning the country has also maintained its positio n as the ninth highest gold producer in the world, closing the year (2009) at an increased yearly output of nine per cent.

The production includes output of the major mining companies as well as Precious Minerals Marketing Company's purchases and shipment, which are recorded by the Ghana Chamber of Mines; in addition to the production by other small-scale mines that do not fall within the Chamber's ambit. Mr Jurgen Eijgendaal, out-going President of Ghana Chamber of Mines announced this when delivering the Presidential Address at the 82nd Annua l General Meeting (AGM) of the Chamber in Accra on Friday.

He said in terms of contribution to national economy, the mineral revenue represented approximately 48 per cent of the country's gross expo rt earnings in 2009 while the mining sub-sector contributed about GH¢319 million to the Internal Revenue Service, representing 18 per cent of the service total collections in the year under review. Mr Eijgendaal, who is also the Managing Director of Ghana Manganese Company Limited, said the total mineral revenue of producing member companies of the Chamber rose from 2.3 billion dollars in 2008 to 2.9 billion dollars in 2009 representing an increase of 27 per cent. He attributed the rise to an appreciation in gold output by 13.3 per

cent from 2,585,913 ounces in 2008 to 2,930,328 ounces in 2009 coupled wi th an increase in the average realised gold price by 14 per cent from 852 dollars per ounce in 2008 to 970 dollars an ounce in 2009.

Mr Eijgendaal said the percentage increase in total output by the Chamber's 69-member companies, ranged from one per cent to 52.4 per cent,

adding that the industry gave direct employment to a total of 12,294 peop le, out of which 98 per cent were Ghanaians. He said the global economic downturn had negative effects on the pri ces of bulk of metals but added that the depreciation of major international currencies coupled with inflationary fears positioned gold as a preferred

habitat for investors, making its price to put a strong showing in 2009. Mr Eijgendaal said the Chamber also ensured that members kept faith with their corporate social responsibilities which had led to the provisi on and expansion of facilities such as water, to their catchment communities .. Meanwhile, the Chamber has sworn-in Mr Daniel Owiredu, Vice Presiden t of Golden Star Resources Limited as its new President. He took over from Mr Eijgendaal who served for four years. PAF/JA