Senior Finance Minister, Dr. Ashni Singh revealed on Monday that the gold mining industry is estimated to have contracted by 11.2 percent in 2023. The economist said this is on account of lower output from the small and medium scale producers.
During the reading of the 2024 budget, he said total gold declarations fell to 432,113 ounces last year. Further, Minister Singh said the single producing foreign operator recorded an estimated 7.8 percent increase in declarations, with 109,358 ounces declared in 2023. However, this was outweighed by the lower declarations from the small and medium scale operators, whose output fell by an estimated 16.2 percent to 322,755 ounces.
Similarly, the bauxite mining industry is estimated to have declined by 20.4 percent in 2023. Minister Singh said this was due to reduced output from both producing operators. He said bauxite production is estimated to have fallen to 525,000 tonnes last year, adding that output from the larger producer declined to an estimated 317,919 tonnes, while production by the smaller operator207,321 tonnes. Both producers attributed their performance to external market developments that have affected demand and prices.
Minister Singh also noted that diamond declarations are estimated to have fallen by 19.3 percent to 67,444 metric carats in 2023.
On a more positive note, the other mining subsector – comprising sand, stone, diamonds, and manganese – is estimated to have grown by 22.7 percent in 2023. Stone and sand extraction are estimated to have grown by 98 percent and 21 percent, respectively, with demand from construction activity in the public and private sectors continuing to grow. Manganese production also grew in 2023 by an estimated 13 percent to 314,538 tonnes.
