14 AUGUST 2014www.ghanaweb.com
Minerals output jumps, revenue falls
Edited by : AL CIRCLE
1 min read
Minerals output rose in the first half of 2014 but revenues declined due to lower prices, Chamber of Mines data have shown.
Ghana’s export revenues from gold, bauxite, diamond and manganese in the period was US$2.143 billion, down from US$2.477 billion in the first half of 2013. Bauxite revenue increased significantly, by 78 percent, on account of the substantial rise in shipments of the ore which went up by 108.4 percent. Shipments rose from 292,778 tonnes to 610,074 tonnes in the period. Alfred Baku, Executive Vice President of Gold Fields’ West Africa Operations, has said mining investments are under threat as companies are cancelling new projects and closing mines due to pressure from price-dips, cost increases and higher taxes.
“Equity investors have become frustrated as miners have spent their money with little to show for it. Returns just do not warrant the risk. In reality, margins and returns from mining are in decline; operating cash flows are not sufficient to cover investments,” he said.
Ghana’s export revenues from gold, bauxite, diamond and manganese in the period was US$2.143 billion, down from US$2.477 billion in the first half of 2013. Bauxite revenue increased significantly, by 78 percent, on account of the substantial rise in shipments of the ore which went up by 108.4 percent. Shipments rose from 292,778 tonnes to 610,074 tonnes in the period. Alfred Baku, Executive Vice President of Gold Fields’ West Africa Operations, has said mining investments are under threat as companies are cancelling new projects and closing mines due to pressure from price-dips, cost increases and higher taxes.
“Equity investors have become frustrated as miners have spent their money with little to show for it. Returns just do not warrant the risk. In reality, margins and returns from mining are in decline; operating cash flows are not sufficient to cover investments,” he said.
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