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Ghana is the only African country to have appeared on the list of the top 10 leading gold producers in the world, occupying the 6th position with 5 million ounces of gold produced in 2020, surpassing South Africa’s 2020 production of 3.5 million ounces.
Here are three things you should know about Gold Mining in Ghana.
1. Ghana is Africa’s largest gold producer
Ghana is Africa’s largest gold producer and the 6th largest worldwide. According to World Gold Council data, Ghana is the only African country to have appeared on the list of the top 10 leading gold producers in the world, occupying the 6th position with 5 million ounces of gold produced in 2020, surpassing South Africa’s 2020 production of 3.5 million ounces. Southern Ghana has been considered one of the world’s most prolific regions for gold discoveries for some time, with both gold producers (including Gold Fields and AngloGold Ashanti) and explorers enjoying success there including Shandong Gold’s takeover offer for Cardinal Resources in 2020.
2. Mining and gold are essential to Ghana’s economy and tax base
According to the “International Council of Mining & Metals, Mining in Ghana, What Future Can We Expect?” Ghana’s stable democratic government supports mining and it is essential to the economy. Mining is a major economic activity in Ghana and a key contributor to the Ghanaian economy. Gold mining accounted for 48.4% of gross merchandise exports in 2020.
Ghana’s political stability is underpinned by strong democratic credentials. The mining industry accounts for over 50% of foreign direct investment and is the largest taxpaying sector in the country.
3. 7.2 billion U.S. dollars was generated from gold in Ghana
Revenue generated from gold in Ghana in 2020 amounted to around 7.2 billion U.S. Dollars. This was the highest income obtained from the mineral since 2009, and an increase from 2019, when roughly 6.2 billion was registered. Moreover, from 2009 onwards, the country’s revenue from gold fluctuated, although increased generally. Overall, Ghana had gold reserves of around 8.74 metric tons as of the second quarter of 2021.
