Cost competitiveness of Ghana s gold min

The mining sector is a major contributor to tax revenues and foreign exchange earnings in Ghana. Gold accounts for about 95% of all revenues generated from the export of metals. Declining gold price after peaking at an average of US$1,669/oz. in 2012 led to staff rationalization in the gold mining industry, peaking when AngloGold Ashanti shut down its Obuasi mine in 2016 after laying off 4,312 employees. This research aimed to ascertain the cost competitiveness of Ghana’s gold mining sector, focusing on large-scale mines due to the availability of verified data for the period between 2007 and 2016. Cost competitive analyses using a Microsoft Excel®-based algorithm were conducted on all large-scale mines. Newmont’s Ahafo and Akyem mines emerged as consistent low unit cost producers, benefiting from economies of scale and efficient management. Conversely, AngloGold Ashanti’s Obuasi and Golden Star’s Bogoso-Prestea mines were identified as high unit cost producers, affected by inefficient mining methods and low recovery rates. The study revealed that recovery rates and production outputs significantly influenced unit costs, and while mill head grade affected individual mine costs, it had less impact on their positions in the industry cost curve. Annual electricity tariff increases were found to affect unit costs more than fuel prices.