The value of the country’s mining sector is anticipated to reach US$3.8billion in 2018, up from US$3.3billion recorded in 2013, as bauxite and gold production see modest increases, B&FT has gathered.

“We expect gold to be the main driver of growth, but see bauxite playing a growing role. Ghana is set to remain Africa's second-largest gold producer after South Africa, as investment continues to flow into the country,” the Business Monitor International's (BMI) Ghana Mining Report has revealed.

BMI's Ghana Mining Report provides industry strategists, and regulatory bodies with independent forecasts and competitive intelligence on the mining industry in Ghana. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.

The forecasted figures are consistent with those of the Ghana Chamber of Mines -- the umbrella body of major mining companies -- whose figures have shown an increase in production output.

According to data from the Chamber of Mines, minerals output rose in the first half of 2014 but revenues declined due to lower prices as export revenues from gold, bauxite, diamond and manganese in the period was US$2.143billion, down from US$2.477billion in the first half of 2013.

The decline was largely on the back of the falling gold price despite an impressive performance from diamond and bauxite, acting CEO of the Chamber of Mines Sulemanu Koney disclosed. Gold, which has in recent times seen a drastic decline in its price, saw a fall in revenue of 14.1 percent. The metal recorded US$2.062billion for the half-year, as against US$2.399billion for the first half of 2013.

Gold output was however up by 1.5 percent, rising from 1.52 million ounces in the first six months of 2013 to 1.54 million ounces between January-June 2014.

Bauxite revenue increased significantly, by 78 percent, on account of the substantial rise in shipments of the ore which went up by 108.4 percent. Shipments rose from 292,778 tonnes to 610,074 tonnes in the period.

Diamond purchases also surged by 78 percent from 4,137,641 carats in the first half of 2013, to 7,363,145 carats in 2014.

Manganese shipments saw an increase by 7.7 percent, but there was a slump in revenue by 14.3 percent -- from US$62,442,008 in the first half of 2013 to US$53,499,903 for the same period in 2014.

“The mining industry’s performance in the area of production in the first six months through the year has been mixed, but the significant increase in output confirms mining’s continuous position as key for the country’s economy,” Mr. Koney said.

Bullion has dropped 25 percent since the beginning of 2013.

Mr. Daniel Owiredu, a former President of the chamber, has said that the imminent temporary shutdown of AngloGold Ashanti’s Obuasi Mine for rehabilitation might significantly blight the fortunes of the minerals industry in 2014 -- while output at Golden Star’s Wassa Mine is projected to decline to between 130,000 and 140,000 ounces in 2014 due to ongoing rationalisation of production.

He said the downturn in gold revenue drove a percentage point reduction in the share of gold in total mineral revenue for 2013, from 97.5 percent to 96.3 percent.

The effect of the falling gold price has caused the country to slip to ninth position in leading gold producers in 2013, compared to eighth in 2012.