Country in focus
Geology and infrastructure
Ghana, formerly known as the “Gold
Coast”, is ranked as the 10th largest
producer of gold in the world. Gold is
found in three settings: a vein system
typically concentrated along the margins
of the Birimian Greenstone Belts and
meta-sedimentary basins; a paleo-placer
in the Tarkwa area and alluvial gold,
concentrated mainly in basal gravels
overlying weathered Birimian units.
Diamonds are recovered from river
gravels in the Eastern, Western and
Central regions of Ghana. The country
also hosts significant bauxite and
manganese deposits. Smaller deposits
of iron ore, graphite, kaolin, mica, clay
minerals, columbite-tantalite and solar
salt are found throughout the country.
Sub-economic deposits of ilmentie,
magnetite and rutile are found along the
coast of Ghana. Industrial minerals are
mined on small scale for domestic use.
Due to heavy investment by the
Chinese, and American governments,
Ghana now boasts a fairly modern road
system in the major cities and office
blocks that would not look out of place
in Beijing or Dubai. The Americans
funded the N1 highway in Accra, one
of the most modern highways in the
by the Ghanaian government that exchange
controls are reasonably easy to negotiate.
“There are restrictions, and that can become
problematic,” says Beech. Other issues that
companies should be aware of include a
social licence to mine and infrastructural
constraints, especially electricity, which the
government is well aware of, and is in the
process of addressing. Power outages, which
happened towards the end of last year and
the beginning of 2019, in fact, now seem to
be under control, and the power supply has
stabilised over the last few months or so.
Kwofie says that power supply problems,
locally referred to as ‘dumsor’, as well as the
high cost of alternative sources of power,
have created uncertainty among investors.
“Even though the power situation has
significantly improved, it appears that
24 AFRICAN MINING JULY - AUGUST 2019
Road infrastructure in parts of Ghana remain a concern.
country, which is called the “George
Walker Bush Highway”.
The harbours have also recently taken
modern cargo handling equipment into
service, specifically ship-to-shore gantry
cranes. The energy demands are being
met by the hydro-electric dams at Bui
and Akosombo. Akosombo has been
in existence since 1965 and Bui was
completed in 2013. Being hydroelectric
dams, electricity supply has been
existing and potential investors are adopting
a ‘wait-and-see’ attitude before deciding on
new developments,” says Kwofie.
Another niggling issue is that of artisanal
miners, and it is something Beech says will
remain a challenge for Ghana way into
the future. “Artisanal miners are a critical
component of the mining landscape in
Ghana. Even though the government is
trying to legalise this component, it is very
difficult for various reasons. One is that the
regulatory system is quite sophisticated,
and the artisanal miners are not necessarily
in the position to meet those requirements,
so there is still a large group choosing not
to come into the fold,” says Beech.
Earlier this year it was estimated that
illegal mining cost the country more than
unreliable in recent years due to erratic
rainfall patterns. Recent energy needs
are supplied by thermal plants fueled by
diesel and/or natural gas. Ghana also has
a gas processing plant and a fairly reliable
transmission network. The demand is
further met by the use of power ships for
energy reinforcement when required, each
capable of delivering 225MW.
Source: Nicolaas C. Steenkamp
USD2.3-billion in 2016. According to
a government report, Galamsey (illegal
miners) gold production currently sits at
about 30% of total volumes. Government
recently lifted a ban on small-scale mining,
which was introduced in 2017, and in the
ensuing period up to early 2018, the illegal
mining task force carried out about 1 200
arrests. With about 200 000 illegal miners
operating in Ghana, there is potential for
ethnic tension between the increasing
numbers of Chinese workers (not only on
established and legal sites, but also as illegal
miners) and the local population.
Steenkamp says the Chinese influence in
Ghana has been clearly visible in the last
couple of years. “The Chinese government
has invested heavily in the development of
infrastructure to connect not only mines
www.africanmining.co.za