Vice President Dr Mahama Mahamudu Bawumia has commended small scale miners in Ghana for the effort in helping Ghana become the number one producer of gold in Africa.
Dr Bawumaia noted that currently, it is estimated that the Small Scale mining contributes about 35% to Ghana’s total Gold production.
“35% is huge,” he said.
He made this known at the maiden edition of the Responsible Small Scale Mining Awards held at Alisa Hotel on Wednesday 22nd December, 2021.
The Vice president described the Mining award ceremony as a historic occasion which he is very proud to be a part of.
He opined that he sees the award to be something peculiar because “all too often, our problem solving turns to focus more on chasing and punishing wrong doers and not recognising and rewarding those who do right and this is what makes this award different”.
“The award recognises players in small Scale Mining sector who despite the temptation to join the wrong doing bandwagon, have decided to stay within the relevant regulatory framework for the country and to operate responsibly,” he explained.
He further stated a number of ways that Ghana has benefited from Small Scale Mining over the years, touting that he believes Small Scale Mining has contributed immensely to Ghana becoming the leading Gold producer in Africa.
” As we all know, Ghana’s Gold production has increased significantly over the past few decades making it the leading Gold producer in Africa. The contribution of Small Scale Mining to this trend is commendable. Currently, it is estimated that the Small Scale Mining contributes about 35% to Ghana’s total Gold production and 35% is huge.”
He added “We have also persuaded the Bank of Ghana and they have also accepted to start a gold purchase programme , for the first time in the history, a deliberate gold purchase programme targeting purchasing gold from small scale mining sector.
“This is going to be a boost for the small scale mining sector when the Bank of Ghana comes in to buy some of your outputs to build the country’s gold reserves.”
Resource Global Network had earlier reported that gold output in Ghana jumped by 12% in 2018 to 4.8 million ounces (Moz), eclipsing South Africa’s output of 4.2Moz for the first time and becoming Africa’s largest gold producer in the process.
South Africa’s gold sector has been in gradual decline for several years, with operators forced to dig deeper into maturing mines at escalating costs, while Ghana is benefitting from low cost mines, friendlier policies and new development projects.
The shifting location of Africa’s primary gold hub is best encapsulated by the likes of AngloGold Ashanti and Gold Fields – traditionally known as South African industry stalwarts – who have decided to move their focus to other countries, including Ghana.
In addition, Sibanye Gold – the largest remaining gold miner in South Africa – is cutting thousands of jobs and diversifying into platinum group metals (PGMs) in a bid to reduce costs