INVESTMENT
OPPORTUNITIES IN THE GHANAIAN MINING SECTOR
Introduction
Ghana has made
tremendous strides in the development of its mining sector since the inception
of the Economic Recovery Programme (ERP) in 1984. Under this programme several
macro economic policies were initiated which has resulted in an upsurge of
investment attraction to the country. For example, major mining companies like
Anglogold, Goldfields, Golden Star Resources, Newmont are investing significant
amounts in the country. Other multinational companies such as BHP-Billiton,
Alcan, Rio into and Alcoa have also expressed interest in the bauxite industry
in Ghana.
Currently proceed
from mining activities provide the largest foreign exchange earnings for the
nation with gold accounting for approximately 90% of these earnings. Gold
production from 282,229 ounces in 1984 to cover 2.3 million ounces in 2004. In
addition to Gold, the country is endowed other mineral deposits such as
Manganese, Bauxite and diamonds. There are also unexploited economic deposits
of iron oxe, limestone, kaolin, feldspar and silica sands.
The following
investment opportunities are available to potential investors.
Gold
In addition to the 7
operating gold mines in the country, the end of 2004, over 200 gold reconnaissance
and prospecting license have been issued by Government to both Ghanaian and
foreign entrepreneur. Some of these companies have advanced in the exploration
work and have blocked out economic reserve but due to lack of funding are
unable to carry the exploration through to exploitation.
Gold Refinery and Value Added Product.
Ghana is already
production over 2million ounces of gold per annum. In spite of this level of
production, there is no refinery in the country and the bullion is exported for
final refining. Feasibility study have confirmed the viability of the refining
gold in Ghana. Such a facility will serve other gold producing countries with
the sub region. This is a project that investor with technical know-how would
wish to consider.
Opportunity also
exist of setting up downstream production facilities to manufacture key input
for the mining industry. Examples, mill balls, drill bits, cyanide and
activated carbon etc., commemorative coins, jewelry and electronic component.
Investors could take advantage of the industrial free zone facility to produce such items for the international market .
Minerals
Commission of Ghana website, 12/18/2008 http://www.ghana-mining.org/ghweb/en/ma/mincom.html
