Can Ghana sustain higher gold output in 2024?

Ghana's gold production surged by 8.3 percent to four million ounces in 2023, marking the country's highest output since the onset of the COVID-19 pandemic. The question on everyone's mind is whether this remarkable growth can be sustained in 2024. Karen Kwarteng, Head of Global Market Sales at Standard Bank, sheds light on the factors driving this success and what the future holds for Ghana's gold mining sector. Kwarteng emphasizes the pivotal role of gold in Ghana's mining industry and highlights the critical measures the government has taken to support small-scale miners, a key driver behind the output expansion. By providing tax breaks and creating an investor-friendly environment, policies have successfully boosted small-scale mining operations, offsetting the decline in large-scale output. Kwarteng underscores the importance of replicating these strategies to bolster large-scale mining and attract investment in infrastructure and technology. Looking ahead to 2024, Kwarteng projects a positive outlook with an estimated output of 4.5 million ounces, driven by a synergy of large and small-scale mining activities. She anticipates potential increases in bauxite, manganese, and diamond production, aligning with optimistic industry projections. Reflecting on past challenges such as weather disruptions affecting production, Kwarteng remains optimistic about the conducive operating environment for mines this year. Mining companies are prioritizing sustainability initiatives, integrating ESG principles to ensure long-term viability. With gold sector revenues reaching impressive figures in 2023, Kwarteng asserts that mining, particularly gold mining, will play a critical role in bridging revenue gaps for the government, following a slowdown in cocoa earnings. The sector's significant contribution to foreign exchange earnings and overall revenue generation underscores its importance in driving economic growth and sustainability for Ghana. As the mining industry continues to evolve, the potential for further growth remains promising, contingent upon maintaining conducive policies, fostering investment, and embracing sustainable practices. Ghana's positive trajectory in gold production sets a solid foundation for the industry's expansion and underscores its pivotal role in the country's economic landscape.