News Guide Africa

Tag: Dr. Kenneth Ashigbey

  • Small-scale gold output outpaces large mines, sparking calls for artisanal sector overhaul

    Small-scale gold output outpaces large mines, sparking calls for artisanal sector overhaul

    By Adnan Adams Mohammed

    Senior Energy & Extractive Correspondent

     

    In a historic shift for West Africa’s mining landscape, Ghana’s artisanal and small-scale mining (ASM) sector has officially outperformed large-scale industrial operations for the first time.

    According to the latest annual industry data, Ghana’s total gold production reached a record 6 million ounces. Of this total, ASM output exploded by 63.8% to hit 3.11 million ounces, capturing over 51% of the national aggregate. Meanwhile, large-scale multinational mines accounted for 2.83 million ounces.

    This unprecedented production flip has altered the ongoing debate surrounding national resource revenue optimization, prompting calls for the state to abandon aggressive policies targeting large-scale operators and instead focus on formalizing the booming artisanal sector.

    Moving away from nationalization and corporate mandates

    The production milestones arrive amidst growing friction between commercial operators and state regulators. The Bank of Ghana recently adjusted its domestic bullion reserve-building program, mandating that large-scale miners sell up to 30% of their output to the central bank a policy shift aimed at shoring up national reserves to 19.2 metric tons to stabilize the cedi. Furthermore, government discussions regarding a sliding-scale royalty structure of 5% to 12% have raised fears of resource nationalization among foreign investors.

    However, industry experts argue that trying to squeeze more revenue out of large-scale corporate mines is the wrong strategy when the real growth engine is domestic.

    “The data proves where the true revenue optimization potential lies,” stated Dr. Kenneth Ashigbey, CEO of the Ghana Chamber of Mines, at a recent extractive sector roundtable. “With the Chamber projecting over three trillion ounces of undiscovered gold still in Ghana’s subsurface, our national focus must be on formalizing, mapping, and maximizing the artisanal sector rather than introducing policies that border on the nationalization of large-scale assets.”

     

    Dr. Ashigbey warned that aggressive mandates on corporate miners create an unstable investment climate, which could choke off the heavy capital required for deep-crust exploration.

    GHANA GOLD OUTPUT PROFILE (MARKET SHARE SPLIT)

    ===============================

    Total Output: 6.00 Million Ounces

    —————————————————

    Artisanal & Small-Scale: 3.11 Million Ounces (51.8%)

     

    Large-Scale Industrial: 2.83 Million Ounces (47.2%)

     

    Other/Residual: 0.06 Million Ounces (1.0%)

     

    The ASM sector as an economic pillar

    Economists and policy analysts note that the small-scale sector not only produces more gold but also keeps a higher percentage of its wealth within the local economy, compared to multinationals that repatriate profits.

    Senior mining investment analyst Faustina Mensah emphasized that optimizing the artisanal sector is the fastest path to sustainable national development, provided the state replaces destructive galamsey (illegal mining) practices with structured support.

    “A resource in the ground is worth nothing until it is proven and extracted responsibly,” Mensah observed. “Now that small-scale miners are producing over half of our gold, the government must shift its regulatory lens. Instead of fighting large-scale miners over contract mining policy directives or volume discounts, the state should actively de-risk small-scale concessions with geological mapping, provide cleaner processing technology, and integrate them into the formal tax net.”

     

    A new path for revenue optimization

    The consensus among industry stakeholders is clear: the future of Ghana’s mineral wealth depends on upgrading local mining from an informal, survivalist activity into a highly efficient, regulated domestic industry.

    By prioritizing the formalization of the artisanal sector over the tighter regulation of foreign corporations, the government could secure cleaner environmental practices, capture direct tax revenues, and systematically exploit the nation’s multi-trillion-ounce gold potential without alienating international capital markets.

     

  • Chamber of Mines project trillions in untapped gold as Ghana hits record output

    Chamber of Mines project trillions in untapped gold as Ghana hits record output

    By Adnan Adams Mohammed  Senior Energy & Extractive Correspondent

     

    Ghana’s subsurface wealth holds vast potential that could redefine global commodities markets, according to an extraordinary geological forecast by the Ghana Chamber of Mines.

    The industry group indicates that the West African nation, already firmly positioned as Africa’s top bullion producer, could be sitting on more than three trillion ounces of undiscovered gold reserves. The projections come during a historic surge for the country’s mining sector.

    According to recently released industry metrics, Ghana’s total gold production hit a record 6 million ounces, driven heavily by a 63.8% explosion in artisanal and small-scale mining (ASM) output, which reached 3.11 million ounces and outpaced large-scale industrial operations for the first time.

    Unlocking the deep-crust treasure trove

    Speaking at an industry roundtable on extractive sector optimization, the Chief Executive Officer of the Ghana Chamber of Mines, Dr. Kenneth Ashigbey, highlighted that modern exploration technologies are revealing vast anomalies beneath the earth that previous generations could not detect.

    “When we evaluate our greenstone belts and compare historical output with current predictive models, the math is undeniable,” Dr. Ashigbey stated. “Ghana has more than three trillion ounces of gold yet to be discovered. What we have taken out of the ground over the last century is just a fraction of what remains untouched.”

     

    The Chamber emphasized that unlocking these reserves will require a radical departure from traditional surface-level prospecting toward data-driven, deep-crust exploration.

     

    Ghana Gold Sector Performance Profile

    ==============================

    Projected Uncharted Potential: 3+ Trillion Ounces

     

    Recent Annual Output (Record): 6.0 Million Ounces

     

    Artisanal & Small-Scale (ASM): 3.11 Million Ounces (52.4% of total)

     

    Large-Scale Industrial Mines: 2.83 Million Ounces

     

    Escalating friction over state gold reserves

    While the multi-trillion-ounce figure highlights future capacity, it arrives amidst growing friction between commercial operators and state regulators over current wealth distribution.

    The Bank of Ghana recently revamped its bullion reserve-building program, requesting that large-scale miners increase their gold sales to the central bank from 20% up to 30% of their annual output.

    This policy pivot aims to shore up national reserves, which climbed to 19.2 metric tons, helping to stabilize the Ghanaian cedi. However, the mandate has met resistance from corporate executives over unresolved commercial terms, including volume-based discounts.

    “Discussions on pricing and discounts are not straightforward, and an industry-wide agreement has not yet been finalized,” Dr. Ashigbey remarked on the sidelines of the roundtable. “To tap into this three-trillion-ounce long-term potential, Ghana needs predictable licensing processes and a constructive government-industry collaboration that actively incentives exploration capital rather than straining current output.”

    Capital and regulatory hurdles ahead

    Beyond reserve mandates, the Chamber raised red flags over the government’s proposed overhaul of mineral royalties, which plans to replace the fixed royalty rate with a sliding scale of 5% to 12% tied to global gold prices. Analysts warn that aggressive fiscal restructuring could jeopardize future exploration.

    Senior mining investment analyst Faustina Mensah noted that global exploration majors look for regulatory stability before deploying the heavy technology needed to find deep-crust gold.

    “A resource in the ground is worth nothing until it is proven, extracted, and refined,” Mensah said. “A three-trillion-ounce figure is an incredible invitation to international markets. But if the investment climate turns hostile with sudden royalty adjustments, or if the government pushes too hard on policies like the contract mining directive by the end of the year, that capital will fly elsewhere and those trillions of ounces will simply stay in the dirt.”

     

    To mitigate these risks, the Chamber of Mines is calling on the Ministry of Lands and Natural Resources and the Minerals Commission to launch a state-backed geological mapping initiative to formally de-risk these massive prospective zones for future investors.