“This is a significant break from the past decade, when the mining sector value barely rose as gold output declined –offsetting much of the increases in price.
“We expect gold to be the main driver of growth, but sec bauxite playing a growing role,” Ghana Mining Report quarter-four survey conducted by the Fast Market Research, an online aggregator and distributor of market research and business information has revealed.
The Minerals Commission has indicated that investments into the mining sector will come from production exploration and support service companies.
The multiplying effect of this investment in the country’s economy cannot he overestimated.
The Bank of Ghana also reported that the mining industry’s contribution to total merchandise export earnings was about 43 percent in 2012.
Data from the Ghana Statistical Service show that the mining sub-sector grew by 23.5 percent in 2012. This compared favorably with the 18.8 percent it achieved in 2011.
Furthermore, the Ghana Revenue Authority (GRA) has stated that the mining sub.sector maintained its position as leading contributor to the authority’s domestic tax contribution in 2012.
The total payment from the mining industry to the authority’s’ chest was approximately GHe1.5billion in 2012. This amount represents about 27.04 percent of GRA’s total domestic collection in the year.
The 2012 collection was an increase of 45 percent on the GHc1.03billion it collected from the mining industry in 2011. The hike was as a result of increased minerals revenue due to higher gold price and marginal increases in output, which translated into higher mineral royalty and corporate tax payments.
On corporate tax, withholding tax and levies, the mining and quarrying sub-sector contributed about GHc894million to the GRA’s contributions – representing about 37 percent of the total corporate tax collected by GRA in 2012.
The mining sector maintained its position as the highest payer of company tax during 2012.
Mineral revenue from producing members of the Ghana Chamber of Mines was up 14 percent to US$5,447,306,422 from the US$4,761,748,688 recorded in 2011.
The increase was largely attributable to gold revenue, which went upon the hack of appreciation in realised gold price and output.
Revenue from bauxite was also up in 2012, although the key driver of increase in minerals revenue was gold.
Revenue from gold improved by 15 percent from US$4,630,255,619 in 2011 to US$5,309,042,204 in 2012, due to an eight percent increase in gold output from 2,924,385 ounces in 2011 to 3166,483 ounces in 2012–coupled with a six percent appreciation in the average realised price of gold from US$1,583 in 2011 to US$1,677 in 2012.
Get the latest news and updates on Ghana’s oil and gas value chain by following us Reporting Oil and Gas on twitter @oilgasghana and like our facebook page and get at us on Google+. Subscribe to our group to get updates.