Gold Production Up

Accra, - 11 June Ghana's gold exports will rise with the opening of more mines and the application of state-of-the-art technology by the growing number of mining prospectors. According to documents from the Ghana Minerals Commission (GMC) made available to the GNA, the number of registered gold operators rose to 217 from 200 following the granting of the application of 30 exploratory rights to operators last year. Foreign mining companies now total 74, while Ghanaian-owned prospecting concerns increased by 17 to reach 123 last year. Companies with gold leasing rights also increased to about 20. The document said difficulties associated with land acquisition for mining purposes have reduced and prospects are that mining companies will feel more comfortable doing business in the country. GMC, set up last year, noted that gold production has increased by 500 per cent over the last 10 years and with earnings around 600 million dollars, 1996 exports are projected to more than double 1991 levels. Investments in the sector have been around 200 million dollars annually and as reported by Mr. Kwame Peprah, Minister of Finance recently, " investments are coming in everyday from all directions". According to a source at Ashanti Goldfields Company (AGC), the cheapest gold producing entity on the continent and the best managed in the country, ''there are no limits to how much can be produced. Emphasis is now more on productivity''. AGC accounts for more than two-thirds of Ghana's gold output at the main Obuasi mine which saw production levels reaching over one million ounces last year as compared to the 0.94 million ounces posted the previous year.

The company hopes to increase its rate of output in the next few years. AGC has introduced a programme to cut cost after the company's 1996 pre-tax profit dropped by 46 per cent to 60.1 million dollars due to a rise in operating expenditure at its Obuasi mine. The programme includes a renegotiation of large supply contracts, elimination of high cost contractors plus a drive to rationalize labour. Figures from the Chamber of Mines in Accra put total figures of gold production by its 13 members for last year at 1.5 million ounces.

It was valued at 681.5 million dollars with a cedi value of 991.3 billion cedis. Diamonds produced by the Ghana Consolidated Diamonds Limited and the Precious Minerals Marketing Corporation totaled 714,341 carats valued in cedis at 23.696 million.