Country in focus
Opportunities
Despite its challenges, Ghana is still a very
attractive mining destination, but a lot of
its success depends on the price of gold
and the state of the gold mining sector in
South Africa. If there are labour issues and
political or regulatory uncertainty in South
Africa, Ghana is affected in a positive way.
Conversely, South Africa gains if there
are factors adversely impacting on the
Ghanaian gold mining sector.
Beech says that compared to many other
jurisdictions, Ghana remains a solid and
stable country. “It has been stable from
a regulatory point of view, stable from a
policy point of view, relatively stable from
a political point of view and it is relatively
easy to do business in the country,” he says.
In comparison, countries that could be
regarded as competition, such as Tanzania
and the DRC, are stumbling from one
crisis to the next, and have, unfortunately,
become problematic for mining companies
to invest in.
In addition, an integrated aluminium project
has recently been inaugurated. It involves the
mining of a world-class bauxite deposit at
Nyinahin and the processing of bauxite into
alumina and then aluminium. Ghana already
has an aluminium smelter (Valco), and
aluminium ingot processing companies like
Aluworks. Perhaps the only piece missing in
the value chain is an alumina refinery, which
the government is planning to build.
Kwofie says the outlook for the mining
industry in Ghana is positive. “Despite the
increase of mining activity in other West
African countries, I believe Ghana is still
the favoured destination,” he adds.
Steenkamp is of the opinion that the main
opportunities in Ghana’s mining sector are
in cleaning up of the concession maps, the
exploration of graphite and lithium deposits
and industrial minerals.
Suppliers
The mining industry in Ghana provides
ample opportunity for global suppliers and
services to enter the country. According
to Rudi Swanepoel, sales and project
manager at Mixtec, there is huge demand
for the company’s products in Ghana.
Mixtec manufactures industrial agitators
and mixers. “We have benefitted from the
continuous growth of the mining sector
in Ghana. The country’s government
has made genuine efforts to become as
investor-friendly as possible and introduced
legislation to back up their attempts and
to support ancillary mining services,” says
Swanepoel.
Rather than capturing new business, the
opportunities for service providers in
Ghana are more aligned with the changing
requirements of existing players as they seek
to extend mine life and expand operations.
There is no doubt that mining will continue
to play a primary role in the future
development of Ghana. But balancing the
risks and rewards remain a constant, as in
other developing countries.
Ominously, the Ghanaian government
recently joined several other African
countries in tightening their grip on
foreign mining companies. In February
2019 Ghanaian President Nana Akufo-
Addo issued a firm warning to foreign
companies that they should stop expecting
supercharged profits from Africa’s
mineral riches. This was preceded by the
introduction of new government tests to
certify the value of gold exports, affecting
the major operators: Newmont, Gold Fields
and AngloGold Ashanti. The government
attributed it to being part of an effort to
protect revenues, that was reported in 2017
to have earned the country USD5.78-
billion from exports of gold, up 17.6 %
from 2016’s figures. The question is, can
Ghana afford to fiddle with the goose that
lays the golden eggs? b
But Ghana needs to look beyond gold and
attempt not to place too much hope on
bullion alone. Kwofie tells African Mining
that a significant new lithium deposits
have recently been discovered, as well as a
large iron ore deposit in the northern part
of Ghana.
neglected. “Engaging mining communities
more effectively as stakeholders in the mining
project often helps to avoid potential conflict
that could develop. Some mines have offered
priority employment to locals where possible,
and source foodstuffs and other supplies from
the community in order to create a win-win
situation. Mining communities are now
more aware of their rights and demand their
rightful stake in mining proceeds,” he says.
Left: Incumbent Ghanaian head of state Nana Akufo-Addo
talks about Ghana’s mining potential at this year’s Investing in
Africa Mining Indaba.
Above: Former president of Ghana, John Mahama, was con-
firmed as the winner of the opposition National Democratic
Congress’s (NDC’s) primary elections.
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JULY - AUGUST 2019 AFRICAN MINING
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