The African Nation Built on Gold Loses Its Crown to a Rival

By Felix Njini, June 9, 2019, 1:00 PM GMT+3

South Africa’s struggling gold industry has suffered yet another humiliation, losing its status as continent leader to Ghana.

The country that led global gold production for a century and extracted about half the bullion ever mined is now Africa’s second-largest gold producer. Output is shrinking as operators capitulate to stubbornly high costs, regular strikes and the geological challenges of tapping the world’s deepest mines.

Meanwhile, Ghana, a country whose gold mining industry dates back to the 19th century, is benefiting from lower-cost mines, friendlier policies and new development projects.

Golden Crown

Ghana's output has grown as South Africa shrinks

Source: The Ghana Chamber of Mines, Minerals Council South Africa

South African industry stalwarts AngloGold Ashanti Ltd. and Gold Fields Ltd. are shifting their focus to other countries -- including Ghana -- where deposits are cheaper and easier to mine. The largest remaining gold miner in South Africa, Sibanye Gold Ltd., is cutting thousands of jobs and diversifying into platinum group-metals as it struggles to contain costs.

The difficulties facing South African gold mines mean output is contracting even though it’s got the world’s second-largest reserves of the metal, according to estimates from the U.S. Geological Survey.

Australia and South Africa boast the largest reserves

Source: U.S. Geological Survey estimates

Note: Other countries reserves account for 12,000 metric tons

In Ghana, gold output jumped 12% in 2018, according to data from the Ghana Chamber of Mines. Small producers account for the largest share of the total, although Ghana also hosts some of the world’s biggest gold miners, including No. 1 producer Newmont Goldcorp Corp. Although Newmont is exploring in Ethiopia, Ghana is the only place in Africa where it operates.

“It’s an important part of our portfolio and, geologically we see really good potential to continue to expand,” Chief Executive Officer Gary Goldberg said in an interview. “We’re very happy operating in Ghana.”

The West African nation’s output will get a further boost when AngloGold Ashanti’s Obuasi operation, previously overrun by illegal miners, restarts later this year. Production from Obuasi is forecast at 350,000 to 450,000 ounces of gold annually during the first ten years.

Comments

Facts The Economist Got Them Wrong on Magufuli

DAR ES SALAAM, East Africa: By Dr. Hernan Louise Verhofstadt* “ A BIT like President Donald Trump, Tanzania’s president, John Magufuli, likes to fire employees on television. In November Mr. Magufuli used a live broadcast from a small town in the north of the country summarily to dismiss two officials,” this is an extract from a recent online article I came across from the newspaper that I admired when I was growing up in Europe back in 1990’s; the Economist . Before I venture into other serious issues, the excerpts above contains gross factual errors; my own fact-check indicates that in the named public rally during the opening of Kagera Airport, there was no summary dismissal of the two officials instantly on television, as alleged. Instead, the two, one District Executive Directors for Bukoba Urban and another for Rural were relieved their duties later through a press release from President’s Office. This is my prima impressio reading the Economist this

Tundu Lissu, a despot in the shadow?

By Masinde Masondore, Montreal, Canada, 01-04-2018: WHEN a learned politician brags of publicly embarrassing his President and counts it an honor while deliberately sabotages the nation's economic interests is a misfit in African traditions. 'Africans have had own ways of criticising the King, the way it happened in ancient Israel, however, in any case, the nation's interests were set apart from any sabotage," Gilbert Moshi. Tindu Lissu, a controversial Tanzanian opposition politician would be leaning on a wrong wall. He chose a road less travelled by learned individuals who mostly were rational. The road he walks and the philosophy he exhibit, only label him a tyranny of darkness. Any democratic leader, whether in opposition or ruling party ought to be totally enveloped in wisdom which prevents monumental errors of judgment. Lissu does not exhibit a minute of it. One of the pillars of customer-focused policies in the business world i

Magufuli Honours Promise As Dangote Factory Gets Direct Gas Supply

Production on of affordable cement now to start next month By Correspondents Dar and Nairobi, 15:16 GMT Under his famed “delivery per se” policy, the government of Tanzania under President John Pombe Magufuli has finally confirmed that it has completed its phase mission of connecting Dangote cement plant in Mtwara, in the southern region of Tanzania, to the natural gas to generate the needed 35MW. Mr. Aliko Dangote in a tete a tete with President Magufuli at the inaugaration of the plant last year. Speaking at the end of his tour of the factory, the Energy Minister Dr. Medard Kalemani said the government was committed to supply the natural gas resource to enable Dangote cement plant access affordable energy for smooth cement production. The factory is one of the biggest cement plants in Southern Africa providing affordable cement to locals and countries in the vicinity. “I am telling you TPDC, if the factory delays to complete its insta

Pan African News Hub

Search This Blog