Alongside its position as Africa’s largest gold producer, Ghana is working hard to take up a role as a key supplier of critical minerals and West Africa’s mining hub.
A keynote speaker at the recent Africa Downunder event in Perth, Ghana’s minister of lands and natural resources, Samuel Jinapor, said the West African nation is well positioned to be significant producer of battery and industrial minerals.
The minister said that while Ghana is best known for its golden riches – the nation is currently the world’s sixth largest gold producer – the country is also well endowed with minerals that are being keenly sort for the global push for new energy solutions.
“In addition to gold, we mine bauxite, manganese, and diamonds. There are also deposits of other minerals like lithium and iron ore; base metals such as copper, zinc, nickel, chrome, and lead; as well as vast deposits of industrial or development minerals including sand, gravel, granites, and salt,” he told delegates.
‘Mining-friendly policies’
There are currently 15 large-scale mining operations in the country, with 13 of them producing gold and the other two producing manganese and bauxite. The country is also supported by more than 200 companies offering engineering and mine support services such as drilling, contract mining and assaying services.
The minister said industrial minerals that anchor the infrastructural development of the country were also being exploited, with clay, feldspar, limestone, salt, granites, sand, and kaolin being mined across the nation by more than 100 licensed quarry operations.
Ghana has about 500 active exploration projects focused on a range of mineral opportunities including gold, lithium, copper, and cobalt, with recent geological investigations indicating viable prospects for iron ore, nickel, zinc, chromium, lead and columbite-tantalite.
“The priority of the government of Ghana continues to be the translation of these volumes of minerals production into wealth to benefit all stakeholders, equitably, including the larger populace as optimally as possible,” Minister Jinapor said.
“The government is, therefore, mindful of the need to implement mining-friendly policies to sustain these achievements, while ensuring environmental sustainability and protecting the interest of citizens and investors alike.
“Fortunately, in Ghana the rule of law is the norm and not the exception. It is the pivot around which our governance architecture revolves. With a stable democracy spanning over 30 years, with peaceful elections and successful change of government from one political party to another.
“Investors are assured of the protection of their rights, regardless of the outcome of national elections. Our respect for the rule of law has earned us the enviable title of ‘the beacon of democracy in Africa’,” he said.
Significant contribution
Ghana has a long history of mining, with the industry predating the arrival of the first Europeans on the shores of the country sometime in the 15th century. Until the country’s independence from the United Kingdom in 1957, Ghana was known as the Gold Coast.
“Since that time, we have developed the industry through various laws and policies, leading us to becoming the number one producer of gold in Africa between 2019 and 2021, and the sixth largest in the world,” Minister Jinapor said.
“The industry’s contribution to Ghana’s economy has been phenomenal, with gold alone providing approximately 40% of our export earnings, and accounting for more than 90% of our gross mineral revenues.”
According to Trading Economics, gross domestic product (GDP) from mining in Ghana averaged GHS4,373.47M from 2006 until 2022, reaching an all-time high of GHS7,327.78M in the third quarter of 2019 and a record low of GHS497.40M in the fourth quarter of 2006.
Trading Economics recently forecast that GDP from Mining in Ghana is expected to be GHS5,352.00M by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. In the long-term, Ghana’s GDP from mining is projected to trend around GHS6,359.00M in 2023 and GHS6,677.00M in 2024, according to its econometric models.
Ghana’s mining sector is the largest tax paying sector in the country with significant contribution to the country’s GDP. It is also by a mile the largest contributor to the country’s gross merchandise exports.
Mining hub
Meanwhile, the Ghanaian Chamber of Mines is pursuing a strategic plan aimed at positioning the nation as the mining support services hub in West Africa while striving to work with government to maintain Ghana’s position as the number one gold producer in Africa.
CEO, Sulemanu Koney, said to achieve this, the Chamber has engaged in several activities and advocated for businesses to implement an environmental, social, and governance (ESG) framework on their operations.
He said the Chamber continues to proactively collaborate with government and related stakeholders to ensure that member companies are abreast and prepared for
government interventions or policy changes.
The Chamber also continues to work to help improve the business environment for member companies, mitigating the effects of the COVID-19 pandemic on the operations of member companies, as well as positively influencing policies on the mining sector.
“Although our members continue to face huge security threats with attacks on employees and companies’ assets from youth of some host communities, the Chamber has engaged with the Ghana police service to complement the mines’ private security with police personnel.”
The Chamber also believes that the mining of other minerals beside gold, bauxite, manganese, lithium, and iron ore among others, would deepen the sector’s contribution to national development.
“Further, we believe that the sector can contribute much more to our country if political actors and industry leaders work together towards a common goal,” Chamber president, Joshua Mortoti, said,
“A goal that will make Ghana the leader in mining in Africa and the mining support services hub in West Africa.”
Mr Mortoti said the Chamber’s desire to position Ghana as the mining support services hub in West Africa will require a collective effort from industry leaders and policymakers embracing new technologies and the opportunities they bring.
“Artificial Intelligence (AI), automation, and big data analytics are key elements for mining firms that aspire to be at the leading edge and be competitive through improving productivity and working conditions for employees.
“As part of sustainable and responsible mining, renewable energy systems would help reduce environmental impact while big data analytics can help improve a firm’s performance with regards to planning, yields, and unscheduled equipment downtimes,” he said.
