Ghana Records Gains In Gold Production

ACCRA, Ghana (PANA) - Ghana produced 2.5 million ounces of gold in 1999 making it the 10th largest producer in the world and second to South Africa on the continent.

The acting president of the Ghana Chamber of Mines, James Kwamena Anaman, said in Accra Thursday that the figure was higher than the 2.3 million ounces recorded in 1998.

He said Ghana's position as a gold producer is quite pronounced and efforts should be made to maintain the gains so far made.

Anaman said the fall in the price of gold on the world market calls for innovative approaches to solving problems in the mining industry to ensure that the country retains its position in gold production.

He expressed regret that many companies are folding up as a result of the adverse world market prices for gold, which is eroding their gains and rendering the companies unproductive.

Anaman said in the face of low investment flows to the gold mining sector, and at a time other companies are pulling out, production levels might fall in the long run, and this may impact negatively on the foreign exchange earnings of the country.

"The impact of this on the national economy is obvious; job losses and increased unemployment rates since the mining sector employs a bulk of the country's manpower. This I believe will not augur well for the nation," he explained.

Gold is Ghana's second largest foreign exchange earner after cocoa.