Mining Coys Bag $3.724bn

Dan Owiredu

Mining companies bagged a total of $3.724 billion in 2010, representing a 27 percent increase over the 2009 earnings of $2.925 billion.

This was mainly on account of the healthy gold price, although the other minerals also contributed to the increase in prices during the period.

According to the 2010 annual report of the Ghana Chamber of Mines, gold revenue went up by 27 per cent from $2.842 billion in 2009 to $3.620 billion in 2010 due to a marginal appreciation in gold output by one percent.

Gold output was up from 2,930,328 ounces in 2009 to 2,970,080 ounces last year.

The marginal increase in the overall production of gold according to the report was on account of rises in output at Chirano Gold Mines, GoldFields Damang, GoldFields Tarkwa, Newmont Ahafo cumulatively offset the declines in AngloGold Ashanti Iduapreim, Golden Star Bogoso Prestea, Golden Star Wassa and AngloGold Ashanti Obuasi.

Speaking at the chamber's AGM on a number of issues, President of the Ghana Chamber of Mines, Daniel Owiredu said the year 2011 looks promising for the mining industry with additional production from new mines such as Adamus Resources as well as prospects that Owere mines bring.

According to him, the output of manganese and bauxite are also expected to go up, therefore increasing the mineral revenue appreciable in 2012.

On illegal mining and use of cyanide and mercury, he noted that illegal mining continued to be a bane in the mining industry, while the use of hazardous chemicals such as cyanide and mercury by illegal miners, as well as pollution of water bodies have negatively affected the communities.

In effect, he added that gold mining firms had to spend huge sums of money to secure their concessions with mixed success.

He also expressed concern about the deplorable state of the Western Rail Lines, saying it continues to affect adversely the operations of the bulk mineral producers, especially Ghana Manganese Company and Ghana Bauxite Company.

He however stated that the industry is committed to collaborate with the government to revamp the rail lines to improve the operations of manganese and bauxite producing members.

Another issue the industry had to deal with was power and energy, saying the rising cost of power was affecting their operations.

The outgoing Chief Executive Officer of the Chamber, Dr Joyce Aryee, on her part, said building relationship with institutions like the Minerals Commission, the Environmental Protection Agency (EPA), the Ghana Immigration Service, Parliament, government and civil society is essential as it opens opportunities for the chamber to contribute to decision-making processes to create an enabling environment for the mining industry.

'Apart from the government and the regulatory agencies, other bodies are important to the mining industry because their opinions are influential and help shape the conditions for the industry,' she added.

Mike Hammah, Minister of Lands, Mines and Forestry, in a speech, urged mining firms to invest in the capital market so as to become more liquid.

By Charles Nixon Yeboah