Domestic gold exports soared to unprecedented levels in first-half 2024, driven by a surge in gold prices and increased production from both small- and large-scale miners.

According to Chief Executive Officer (CEO) - Minerals Commission, Martin Ayisi, gold exports accounted for 54 percent of total export – amounting to US$5billion of the US$9.2billion total exports at end-June 2024.

The spike in gold prices, particularly in the second quarter of 2024, significantly contributed to this. The average gold price hit a record US$2,338 an ounce in the second quarter, marking an 18 percent year-on-year (YoY) increase and a 13 percent rise quarter-on-quarter (QoQ).

In July average price of gold rose further to about US$2,396 an ounce, reaching an all-time high of US$2,482 an ounce on July 17, 2024.

“If the gold price remains around the average for July or the second quarter, the full-year outlook for gold exports could reach US$10billion or more,” Ayisi predicted.

Small-scale mining contributed significantly to this surge, with exports totalling approximately US$1.7billion in first-half of the year and accounting for about 36 percent of mid-year gold exports.

Mr. Ayisi projected that buoyed by record prices, small-scale mining exports could exceed US$3billion by end-2024.

The CEO of Minerals Commission, who said these in an interview with BFT, emphasised that the robust revenue from gold demonstrates the mining sector’s critical role in Ghana’s economy.

However, he highlighted the importance of value addition for maximising the sector’s benefits.

He pointed to ongoing efforts in refining lithium, bauxite, manganese and even local gold as crucial steps.

Particularly notable is the Ghana Manganese Company’s (GMC) US$450million refinery project, which aims to upgrade manganese ore from 27 percent to 40 percent grade, create an additional 350 jobs and boost revenue.

He also mentioned new measures to enhance local content and participation, ensuring that over US$2billion spent by mining companies on local supplies and services benefits Ghanaians.

Efforts are also underway aimed at encouraging mining companies to list on the Ghana Stock Exchange (GSE) to raise capital for mining projects.

It will be recalled that Head-Listings and New Products, GSE, Joyce Esi Boakye in an exclusive conversation with B&FT hinted at the Exchange’s strategic push to diversify its portfolio and enhance investment opportunities in collaboration with both local and international mining ventures.

This among others seeks to strengthen ongoing efforts at promoting local ownership of the country’s mineral resources.

The move encouraging miners to float shares on the stock market follows a Legislative Instrument, (LI) 2431, which requires mineral rights holders (mining companies) to list at least 20 percent of their equity on the GSE.

This requirement applies to mining companies with planned expenditure exceeding a determined limit within five years after commencement of mining operations.

Further to this requirement, the Minerals Commission (MinCom) and GSE have developed draft guidelines (the Draft Guidelines) to, among other things, prescribe the limits of capital expenditure which, when met, will trigger the listing requirement under LI 2431.

Subsequently, Atlantic Lithium Limited – a prominent player in the global lithium industry – has officially begun trading on the Exchange following its agreement with government on the Ewoyaa lithium discovery.

It is understood that the Minerals Income Investment Fund’s (MIIF) initiatives to take equity stakes in mines aim to enhance state and Ghanaian participation in the mining sector.

In line with this, Mr. Ayisi lauded the work of MIFF to take equity stakes in mines, all to enhance state and Ghanaians’ participation in the mining sector.

Also, he called for improved environmental management of small-scale mining operations – which span about 12 regions in Ghana and support approximately three million livelihoods – to ensure sustainable practices that do not harm the environment.