Speaking on Joy News’ PM Express Business Edition, he said the current boom conceals deeper struggles within the industry.

“When people look just at the gold price, it doesn’t tell the whole story,” he stressed.

According to him, surging gold prices often trigger an automatic rise in the cost of inputs.

“Your input prices are almost adjusted accordingly, because most people will factor that into their pricing,” he noted.

Beyond this, Mr. Akafia explained that higher prices push firms into more complex operations.

“If you have a concession, when gold price goes up, that may require you to mine some of your marginal areas. What that means, though, is that you are mining it at that high cost. So it means your margin is not as high as everybody expects it to be.”

He described the situation as a paradox: while the world sees glitter in soaring prices, companies face high costs and shrinking margins.

This, he added, explains why production growth has remained flat for large-scale mining despite small-scale output nearly doubling.

“Production stagnating at 2.9 million is telling you a story,” he observed.

Mr. Akafia further linked the stagnation to weak exploration pipelines, which threaten the sector’s long-term prospects.

“If you compare us to other jurisdictions that are focusing on mining, then that’s why you see that we may have challenges that we may want to address.”

Despite the challenges, he emphasised that the industry continues to play a critical role in stabilising Ghana’s economy.

“One of the things that we visibly can tell is the currency and its performance recently, and everybody knows that a big chunk of that is attributable to the gold industry,” he said.

The Chamber, he added, is working closely with government to support key interventions such as the gold purchase programme.

Source: Abubakar Ibrahim

According to the Chamber, the move risks undermining Ghana’s competitiveness and discouraging both local and foreign investment in the sector.

Presenting the Chamber’s position paper at a press briefing, Chief Executive Officer, Ing. Dr. Ken Ashigbey, argued that a shorter lease period would make projects less viable and deter capital inflows.

“What is going to happen is that if the tenure is short, when you do your NPVs, you will find out that the project is not feasible. And if it is not feasible, nobody will bring money to invest. Not only foreign direct investment, but also local direct investment,” he explained.

Dr. Ashigbey also cautioned that a shorter lease period could incentivize unsustainable practices such as high grading, where companies exploit only high-value ore within the limited lease duration and abandon lower-grade deposits.

“If you reduce the tenure, what is going to happen is that you are going to encourage high grading. They will look for the high grade, exploit that because that is the tenure they have, and then leave. This would compromise the economic viability of deep-seated, complex, and marginal ore bodies,” he said.

He further warned that the broader consequences could weaken Ghana’s attractiveness as a mining destination, reduce the time available for companies to recoup investments, cut near-mine exploration, and shrink corporate social investment in host communities.

To safeguard the sector, the Chamber has recommended that the existing framework under the Minerals and Mining Act, 2006 (Act 703), which provides for a 30-year lease with renewal options, should be maintained.

The Chamber insists that preserving the current regime will sustain investor confidence, support long-term mining projects, and ensure the sector continues to contribute meaningfully to Ghana’s economic development.

Source: Winston Tackie

Speaking at a media briefing in Accra on Tuesday, 10 June, the newly appointed CEO, Ing. Dr Kenneth Ashigbey, clarified that the transition was purely internal and devoid of political interference.

“There is a transition from telecoms to mining, but it is important to note that both entities are private member organisations,” Dr Ashigbey explained. “The Ghana Chamber of Mines is not a state institution. Ahmed [Dasana Nantogmah] has not been appointed with presidential powers from Jubilee House, and neither have I.”

He emphasised that the Chamber collaborates with government bodies solely to advance mining as a catalyst for national development, which aligns with its core mandate.

Ahmed Dasana Nantogmah, the new Chief Operating Officer, also spoke during the briefing, focusing on Ghana’s emerging lithium sector. He cited a significant shift in Atlantic Lithium’s investment due to market volatility: from an expected US $100 million to approximately $300 million, following a drop in lithium prices from around $3,000 to $600 per tonne. He emphasised the need for robust stakeholder engagement and streamlined processes to safeguard investment.

The leadership reiterated the Chamber’s dedication to transparency, inclusive stakeholder dialogue, and policy reform to ensure Ghana fully benefits from its mineral resources while adhering to international best practices.

As a key institution shaping Ghana’s extractive sector, the Chamber reaffirmed its role at the forefront of sustainable economic transformation.

According to the Chamber, these appointments reflect a renewed commitment to innovation, operational excellence, and sustainable growth within Ghana’s dynamic mining sector.

Ing. Dr Ashigbey brings to the role a broad portfolio of leadership experience across media, technology, infrastructure, and engineering.

As CEO, he will be responsible for steering the strategic direction of the Chamber, deepening stakeholder engagement, and championing policy advocacy to enhance the competitiveness and sustainability of Ghana’s mining industry.

Mr. Nantogmah’s elevation to the newly created role of COO underscores the Chamber’s focus on improving operational efficiency. He will oversee day-to-day operations and drive the execution of strategic initiatives. With a strong background in mining policy and corporate affairs, Mr. Nantogmah is well-positioned to help the Chamber achieve its operational goals.

Commenting on the appointments, Mr. Michael Edem Akafia, Esq., President of the Ghana Chamber of Mines, said:
“The appointment of Ing. Kenneth Ashigbey and Ahmed Nantogmah heralds a new chapter for the Chamber. Their combined expertise, leadership, and vision will be instrumental in navigating the dynamic landscape of the mining industry and advancing the interests of our members and the nation.”

The Chamber reaffirmed its commitment to building a resilient, responsible, and globally competitive mining sector that contributes meaningfully to national development. It views the leadership transition as a pivotal step in aligning with international best practices and strengthening sustainable mineral resource governance in Ghana.

Ing. Dr Kenneth Ashigbey recently resigned as the CEO of the Ghana Chamber of Telecommunications to take up his new role.

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This is according to the 2023 mining report by the Ghana Chamber of Mines.

A total of $2.7 billion was channelled through local banks, this was marginally lower than the value of the same transaction in 2022; $2.73 billion.

In 2022, about $1.41 billion was transferred through the central bank with 2023 recording a slight increase to 1.5 billion dollars.

“On the whole, the Chamber’s producing member companies repatriated US$4.2 billion into the country through commercial banks and the Bank of Ghana in 2023.”

Relative to their realized mineral revenue of US$5.9 billion in 2023, the repatriated funds of the Chamber’s producing member companies translate into 71.3% of their forex earnings.

This the chamber describes as “a marginal reduction from the previous year’s outturn of 73%.”

In 2023, the producing member companies sold $716.97 million to the Bank of Ghana under the forex purchase initiative. This arrangement gives it the first right to purchase any forex above the MSR to be offloaded onto the forex market by mining firms.

Also, the volume of gold sold to the central bank under the Domestic Gold Purchase Programme (DGPP) improved from 93,799 ounces in 2022 to 447,492 ounces in 2023, representing a growth rate of 377.1 per cent.

Also, data from the Bank of Ghana shows that receipts from the export of minerals improved from US$6.8 billion in 2022 to US$7.8 billion in 2023.

“The 15 per cent growth in mineral revenue was ascribed to the increase in proceeds from the export of all minerals, except manganese”

Mineral production outlook for 2024

Ghana’s mineral sector is expected to record broad-based growth in the production and exports of the four traditional minerals. The production of gold is projected to range between 4.3 million ounces and 4.5 million ounces in 2024.

The report continues to add that it expects new productions by some members of the chamber to boost production.

“Fresh production from Newmont’s Ahafo North project and Cardinal Resource’s Namdini Gold Mine will supplement the planned production of the existing producing member companies’ mines, which will increase the attributable production of the Chamber to a range of 3.1 million ounces to 3.3 million ounces in 2024.”

Maxam was shut down last week after orders from the Minerals Commission.

This was due to the explosion at Apiate in the Bogoso area of the Western Region in which a vehicle belonging to the company and carrying explosions sparked, claiming about 14 lives.

Speaking exclusively to Joy Business, Chief Executive of the Ghana Chamber of Mines, Suleman Koney, said the country will lose a lot if Maxam is not assisted to resume operations.

He also called for a quick action on the investigation in order for the company to resume operation since most of the mining firms are running out of stocks.

“Out of the calculations we did as a Chamber indicates that a lot of revenue will be lost at least to the tune of $1.75 million on royalties per week. If this is for royalties alone, then you can imagine the other forms of taxes and levies mining firms may have to pay after production and its impact on government revenue.”

“I can tell you it’s really a big blow to the industry and government; trust me, most of the companies are on the verge because stocks may be running out and without explosives, we cannot blast or do any major mining activities” he said.

The incident that happened is currently under investigation by the relevant agencies to ascertain its cause.

The CEO also assured that the company will bounce back strongly to make Ghana’s mining industry the best on the continent.

The Chamber has presented some relief items to the affected victims and the community to aid their recovery process.