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Economic news for Monday, February 22, 2021
Source: www.ghanaweb.com
02/22/2021
Ghana, Burkina Faso and Mali to increase by 2.7% in 2021
With many businesses impacted by the global pandemic, mining has not been left out as it saw a sharp drop in revenue in fiscal 2020.
According to data and analytics firm GlobalData, the pandemic has had a significant impact on Africa’s operations, primarily at the start of the second quarter of the business year, when at one point more than a quarter gold mines in the area were on hold due to COVID-19 lockdowns.
Despite the setback, analysts say the future looks bright after the coronavirus with major West African gold producers in the sub-region market Ghana, Burkina Faso and Mali are expected increase by 2.7% in 2021 to reach eight million ounces and are expected to grow to 8.4 million ounces by 2024, which works out to a compound annual growth rate (CAGR) of 1.6%.
Ghana is expected to account for most of the growth, with production expected to reach 3.9 million ounces in 2024, up from 3.6 million ounces in 2021.
GlobalDataVinneth Bajaj’s Associate Project Manager in a press release said: “AngloGold’s Obuasi redevelopment project will be a key production boost in West Africa in 2021.
The first phase is already over and the momentum of the second phase has been maintained despite the challenges of Covid-19. The project is expected to contribute up to 200,000 ounces of gold production capacity and is expected to begin in 2021 ”.
Mr. Bajaj noted that around 12 projects are currently under development in 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, Mali.
According to an AfricaBriefing report observed by GhanaWeb, although production in Ghana fell 7.5% in 2020, the country experienced only minimal impact on gold mining activities.
It was one of the first countries to resume operations after a mandatory 21-day lockdown in major metropolitan cities announced in March 2020, the company notes.
Production in Mali fell 5.6% in 2020, due to operational disruptions from COVID-19 at several mines, including the closure of the Morila and Sadiola mines. The country initially continued its business activities, despite the epidemic.
In contrast, production in Burkina Faso is estimated to have increased by 2.1% in 2020. Gold production in Burkina Faso is expected to grow at a CAGR of 3.8%, supported by 460,000 new production capacity from gold.
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