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West Africa Gold Production Expected to Increase by 2.7% in 2021 According to Report
Posted On 24 Feb 2021
By Richard Adorsu-
Photo Credit: Mining Review Africa
NEW AFRICA BUSINESS NEWS (NABN) Accra, Ghana– With lots of businesses being affected by the global pandemic, mining was not left out as it saw a big decline in revenue in the 2020 fiscal year.
According to data and analytics company Global Data, the pandemic had a significant impact on Africa’s operations, mainly during the early part of the second quarter of the trading year, when, at one point, more than one-quarter of the region’s gold mines were on hold owing to COVID-19 lockdowns.
Despite the setback, the analysts say the future looks bright post coronavirus with West Africa’s leading Gold producers on the sub-region market Ghana, Burkina Faso and Mali are expected to increase by 2.7 percent in 2021 to eight-million ounces and is expected to grow to 8.4 million ounces by 2024 which is a 1.6 percent compound annual growth rate (CAGR).
Ghana is expected to be the originator of majority of the growth, with production expected to reach 3.9 million ounces in 2024 from a forecast of 3.6-million ounces in 2021.
The Associate Project Manager at Global Data Vinneth Bajaj in a news release said “AngloGold’s Obuasi redevelopment project will be a key boost to production in West Africa in 2021.
The first phase has already been completed and the momentum of the second phase was maintained despite Covid-19 challenges. The project is expected to contribute up to 200,000 oz of gold production capacity and is anticipated to begin in 2021,”
Mr. Bajaj noted that about 12 projects are currently under development across Ghana, Burkina Faso and Mali, which are expected to be operational by 2024. These include the Bombore and Kiaka projects, in Burkina Faso; Obuasi Phase 2, in Ghana; and Kobada, in Mali.
Although production in Ghana fell by 7.5 percent in 2020, the country experienced only a minimal impact on gold mining activities. It was among the first few countries to resume operations post a 21-day mandatory lockdown
across the major metropolitan cities announced during March 2020, notes the company.
Production in Mali fell by 5.6 percent in 2020, owing to the COVID-19 operational disruptions across several mines, including the closure of the Morila and Sadiola mines. The country initially continued business activities, despite the outbreak.
In contrast, production in Burkina Faso is estimated to have grown by 2.1 percent in 2020. Gold production in Burkina Faso is expected to grow at a CAGR of 3.8 percent, supported by 460,000 new gold production capacity.
For New Africa Business News Richard Adorsu Reports, Africa Correspondent
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Thank you, Richard for the report. Am a daily reader of the reports. Johannes in Dodoma, Tanzania
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The gold harvested in our great continent, should benefit our population. And thank you for the news. Luanda, Angola. Rosine
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Thank you for signing me to the newsletters. Enjoy reading the daily reports. Patrick, Kigali RWANDA
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Gold and our other God given natural resources in Africa, productions are expected this year to go up. Hope our governments all over the continent, are signing good contracts that are good for us. Thank you for the report. Harare Zimbabwe. Vince
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Many thanks and congratulations Journalist Richard of Accra, Ghana for the Win. London, UK. Andy
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Gold is extremely expensive, let’s sell more and keep more. Kampala, Uganda John.
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Thank you Richard for the report. Africa must use these natural resources to develop our continent.
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