Ghana’s Gold Export Expected to Hit $10 Billion by End of 2024

Ghana’s gold export has surged to unprecedented levels in the first half of 2024, according to Martin Ayisi, the Chief Executive Officer (CEO) of the Minerals Commission. The total mineral exports for this period reached $9.2 billion, with gold alone contributing 54%, amounting to five billion dollars.

Ayisi attributed this significant increase to the global surge in gold prices, especially in the second quarter, alongside heightened local production from both small and large-scale mining operations. The gold price averaged a record $2,338 an ounce in the second quarter, marking an 18% year-on-year increase and a 13% rise from the previous quarter.

“The average price of gold for July was $2,396 an ounce, with a new record high of $2,482 an ounce on July 17, 2024,” Ayisi stated. He predicted that if gold prices remain stable at the second quarter’s average, the full-year gold export could reach US$10 billion.

Ayisi also noted that small-scale mining contributed approximately $1.7 billion in the first half of the year, making up about 36% of the total gold export by mid-year. He projected that small-scale mining exports could exceed three billion dollars by the end of 2024 due to the record gold prices.

Highlighting the importance of the mining sector, Ayisi emphasized that the real economic benefits lie in value addition. He cited government initiatives for value addition in lithium, bauxite, and manganese, and plans for local gold refineries.

Particularly notable is the Ghana Manganese Company Limited’s effort to construct a $450-million refinery to process manganese ore locally, which would increase the manganese grade from 27% to 40% and create an additional 350 jobs.

Ayisi also mentioned new measures to enhance local content and participation, ensuring that the over US$2 billion spent by mining companies on local supplies and services benefits Ghanaians. He highlighted government efforts to list mining companies on the Ghana Stock Exchange to raise capital for mining projects and praised the Minerals Income Investment Fund’s role in taking equity stakes in mines to boost state and local involvement in the sector.

Additionally, Ayisi stressed the need for better environmental management of small-scale mining operations, which occur in 12 out of Ghana’s 16 regions and support about three million livelihoods, underscoring the importance of sustainable practices in the industry.