JOHANNESBURG  – Ghana‘s gold sector has had a strong start this year, owing to the start of gold production at a new mine, rising gold prices and a favourable investment environment, Fitch-affiliated market analyst BMI Research said on Tuesday.

“We expect the steady growth rate of the country’s gold output to continue from 2017 to 2021,” it added.

Commercial production has started at Golden Star Resources’ Wassa underground mine, which is expected to produce 160 000 oz of gold this year.

Golden Star’s Prestea underground mine is also set to start production in mid-2017, further lifting the country’s gold production.

In the longer term, the country’s mining sector is expected to benefit from rising gold prices, which have rebounded following the initial drop after the election of US President-elect Donald Trump.

“We forecast the precious metal to steadily increase from an average of $1 300/oz in 2017 to $1 500/oz in 2020, largely owing to rising inflation pressures.”

Source: Mining Weekly

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