South Africa, Ghana and Mali are the largest gold producers on the continent

The Dark continent holds half of the world’s gold reserves. South Africa, Ghana and Mali, which produce respectively over 300 tons, 75 tons and 50 tons per year, are the largest producers on the continent.

Global gold production is all set to beat last years output of 2652 tons as Africa’s contribution is expected to increase this time around.

Africa’s contribution is expected to cross the 600n tons mark this year, expected to represent again a quarter of the global production. The Dark continent holds half of the world’s gold reserves.

South Africa, Ghana and Mali, which produce respectively over 300 tons, 75 tons and 50 tons per year, are the largest producers on the continent. Rising gold prices are now encouraging many other African states to engage in the production of the precious yellow metal.

A financial windfall for the African states wishing to finance their development. With the dramatic increase in the price of gold over the past decade, Africa is attracting many multinational gold mining companies.

These, like the world number one New Mount Minning, invest heavily in gold, and especially in West and Central Africa where over 80% of large-scale mining sites are owned by them. But small mining companies are also developing small-scall mining.

For Ghana, the continent’s biggest producer after South Africa, 2011was also a good year. Its production increased by 3 percent and its revenues by 30% over the last nine months compared to the same period last year. For other producer countries, the figures are just as good.

This increase in production, coupled with the efforts of the African states to stabilize the trade of the precious yellow metal, is a good omen for the development of real gold that can truly bring profit to those states.

Extraction of precious metal contributes to the African national budgets Gold reserves of Mali are estimated at 500 tons for an average current extraction of 50 tons per year.

According to the Ministry of Mines, the contribution of gold towards the state revenue was 192 billion CFA francs in 2009, excluding the wages to 10 000 direct jobs and subcontracting within the sub-sector.

Third African country gold producer after South Africa and Ghana is Mali, which has 7 industrial gold mines and is expecting three more, including that of Koman, which is to be developed by Gold Fields of South Africa, 4th world producer of gold. In Mauritania, the revenue from the exploitation of gold has risen sharply this year.

To increase the inflow of money into the coffers of the Treasury, the country decided that the royalty on gold will now be calculated in a responsive and dynamic way with respect to commodity prices.

The State is also planning to add a fee equal to 10% of the added value for each mining transaction, which will be paid to the Treasury.

Mauritania will now invest in the gold mine Taziast to the tune of approximately $ 1.5 billion over 3 years. 2000 to 3000 jobs should be created thanks to Taziast.

Meanwhile, South Africa’s gold output fell by 3.3 percent in volume in October while total mineral production was down 12.7 percent compared with the same month last year, data showed on Thursday. Production of non-gold minerals fell 14 percent. – BullionStreet

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