The Ghana Chamber of Mines says mineral revenue of producing members fell 17 per cent to $4 billion in 2014 down from $4.8 billion the previous year.
The drop in revenue is due to lower gold price on the international market and decline in shipments of manganese.
The Chamber’s President, Mr Johan Ferreira told the 87th Annual General Meeting of members that although revenue from diamonds was up by 33 per cent, it could not offset the decline in overall mineral revenue.
Gold revenue, which accounts for nearly 98 per cent of the basket of mineral revenue, declined from about US$4.6 billion in 2013 to about US$3.8 billion in 2014.
“Coupled with the reduction in the average realized price of gold from US$1,444 per ounce in 2013 to US$1,213 per ounce in 2014, the 17 per cent drop in gold revenue was also triggered by a percentage dip in output,” Mr. Ferreira said.
Under the theme ‘Leveraging the mining sector to catalyse national development’, he explained that, gold revenue, which accounted for Gold output of the producing members, dropped from about 3.19 million ounces to about 3.16 million ounces on account of reduced output from AngloGold Ashanti Iduapriem, Gold Fields Tarkwa, Golden Star Resources Wassa, Newmont Ghana Gold Ahafo, Adamus Resources and Perseus Mining.
In addition, purchases of gold by ASAP VASA from small-scale miners shrank precipitously.
However, increases in output were recorded at AngloGold Ashanti Obuasi, Gold Fields Damang, Golden Star Bogoso/Prestea as well as a full year production at Newmont Akyem.
The purchases and exports of diamonds by PMMC from small-scale miners increased to 241,120 carats in 2014 compared to the corresponding outturn of 159,074 carats in 2013, representing a growth of 51 per cent.
Ghana Manganese Company’s export of manganese dropped by 32 per cent in 2014, from 1,997,911 tonnes in 2013 to 1,353,486 tonnes in 2014. The steep decline in exports was attributable to the inability of its major client to lift manganese in the third quarter of 2014.
Minister of Lands and Natural Resources Nii Osah Mills commended the mining sector’s contribution to the economy over the years.
“While mining has been a key part of the growth experienced by our economy, the industry has even greater potential to improve the well-being of all Ghanaians; but this can only be achieved through an all-inclusive approach to developing the sector and its links with other sectors,” he said. GNA