Mining companies are expecting gold prices to sustain the increase for this year to impact on their profits.
The price of the commodity has since 2016 failed to see significant increases as projected by mining firms.
The drop in price has affected the profits of the mining industry which has also impacted their contribution in terms of taxes.
Presently, an ounce of the commodity is estimated at 1, 286 dollars.
Speaking to Citi Business News on their expectations for gold prices for this year, the CEO of the Ghana Chamber of Mines, Sulemanu Konney maintained that higher prices should make mining companies competitive.
“I think gold has been ticking up quite a bit but it is not up to the 2016/2017 levels yet. But I think it has been holding firm, generally we know it is driven largely by geopolitics and of course economics as well and therefore when stocks tend to be doing pretty well, generally would have an adverse impact on the price of gold particularly the major mineral that is mined in the country,” he said.
Mr. Konney added: “Generally, our expectation is that it should actually be much better than it is going now. Of course once it goes up, practically everybody in the value chain in the mining industry is excited as there will be a lot more taxes, the company will be able to expand as this happens when an economy is especially driven by the price of gold.”
Ghana recorded revenue of GHC2.16 billion in 2017 from the mining sector.
According to data and research from the Ghana Chamber of Mines and the GRA, the total mining fiscal receipts mobilised by the Ghana Revenue Authority (GRA) increased by 31 percent, from GHC1.65 billion in 2016.
Again, the mining sector, in the first half of 2018, contributed a total of GH₵1.03 billion to government revenue.
This indicates an increase of 17.11% as compared to the 2017 first half value of GH₵877 million.
The sector also contributed 7.2% to Gross Domestic Product (GDP) in 2017, compared to 8.0% GDP in 2016.
This means the sector contributed GH₵17.1 billion to the Ghanaian economy in 2017, compared to GH₵15.8 billion in 2016.