a government that has significantly
improved the socio-economic trajectory
of the Ghanaian state, which has faltered
under his own tenure.”
The Akufo-Addo tenure has also resulted
in a surge of GDP growth, which will
start trickling down to the man on the
street. After the economy grew by 3.7% in
2016 (Mahama’s final year of governance),
the figure accelerated to 8.5% in 2017
after Akufo-Addo’s first year in charge.
However, if the NPP fails to convert
its success into further tangible socio-
economic progress, especially employment
and industrialisation, it may give the NDC
a campaign point to make inroads into
the NPP vote. In addition, the reliance
on oil and gold leaves the administration
vulnerable to price fluctuations, which
could prove politically costly. Be that as it
may, the political risks in Ghana are not
expected to increase significantly over the
next few years, and the country will remain
attractive for foreign investors.
According to John Kwofie, country
manager for SRK Ghana, the political
climate certainly has an impact on business
in the country. “The two main political
parties have different perspectives on
growing the economy. While one party may
see infrastructural development as pertinent
to growth, the other may see provision
of free education as the gateway. But
overall Ghana is politically stable, and the
economy is growing,” says Kwofie.
John Kwofie, country manager for SRK Ghana
22 AFRICAN MINING JULY - AUGUST 2019
Country in focus
One of the major constraints of operating in Ghana is access to sufficient electricity.
Mining in Ghana
On the back of political stability, and a
relatively business-friendly environment,
mining companies in Ghana have done
well over the last 30 years or so. Large
players like Gold Fields, Newmont,
Kinross, AngloGold Ashanti and Golden
Star, have established themselves and are
almost synonymous with mining in Ghana.
After being through some trying times,
AngloGold’s Obuasi mine has undergone a
facelift, and after a period of redevelopment
the first gold pour is expected to take place
during the third quarter of 2019.
Kwofie tells African Mining that a revival of
old mines like Obuasi can only be positive
for Ghana. “It is a sign that investors are
willing to relook mothballed operations and
are confident that their investments will
reward them with reasonable returns. This
bodes well for the growth of the mining
industry in Ghana,” he says.
He adds that the importance of an old
mine like Obuasi to the mining industry of
Ghana should not be underestimated. “From
my personal perspective, the importance of
the mine is in the training and exposure it
gave to its employees during its early years.
As a result of cutting-edge technology that
was being used on the mine, e.g. BIOX, a lot
of employees were trained in technologies
that they would not have been exposed to
otherwise. Due to Obuasi’s commitment to
employee training over the years, a lot of its
highly-trained former employees are now
working in mines all over the world training
newcomers to the mining industry,” he adds.
According to independent geologist
Nicolaas C. Steenkamp, it is encouraging
to see an increase in expansion project
underway in Ghana. “Golden Star recently
boosted their Father Brown project’s
inferred resource by 93% and updated the
project’s indicated resource to 981 465
tonnes at 7.5 grams gold for 237 897oz gold,
while AngloGold is expected to pour first
gold at Obuasi mine by year end, following
underground development blasting in
the first quarter of this year. Meanwhile,
Newmont’s Subika underground operations
started commercial production in November
2018,” says Steenkamp.
Newmont delivered Subika on schedule and
within the budget of about USD186-million
in development capital. At the beginning of
2019, it is expected that the underground
operation will add, on average, an annual
gold production of between 150 000 and
200 000 ounces per year for the first five
years from 2019, and has an initial mine life
of 10 years.
“In addition to increasing gold production
and lowering costs at Newmont’s Ahafo
mine, Subika Underground leverages
the operation’s existing infrastructure
and experienced workforce to further
extend mine life,” says Gary Goldberg,
www.africanmining.co.za