Mining
From The Report: Ghana 2013
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Vast mineral resources have served as a primary driver of Ghanaian economic growth in recent decades, and 2012 was another banner year for the mining industry. Ghana was the world’s eighth-largest producer of gold in 2012. At the same time, production of bauxite, a key aluminium property, increased, while deposits of diamonds and manganese continued to attract international investment. Overall, mine production was reported by the Ghana Chamber of Mines to have grown by 23.5% in 2012, above the 18.8% rise posted in 2011. This translated into a 14% increase in total revenues year-on-year. However, limited port and rail facilities are beginning to pose a challenge for the industry, which is being forced to rely on less-than-ideal options for transporting equipment and mineral output. Efforts are under way to develop the supply chain and create new downstream manufacturing capacity, but progress is gradual. It is highly likely that mining output will slow as the market for gold flags.

This chapter contains interviews with Alhaji Inusah Fuseini, Minister of Lands and Natural Resources; and Toni Aubynn, CEO, Ghana Chamber of Mines.

Articles from this Chapter

Overview

Unearthing potential: Investors size up opportunities following sector growth and maturity
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Vast mineral resources have served as a primary driver of Ghanaian economic growth in recent decades, and 2012 was another banner year for the mining industry. Known in colonial times as “the Gold Coast”, Ghana was the world’s eighth-largest producer of gold in 2012. At the same time, production of bauxite, a key aluminium property, increased, while deposits of diamonds and manganese continued to attract international investment. BY NUMBERS: Output from Ghana’s mining sector increased…

Interview

OBG talks to Alhaji Inusah Fuseini, Minister of Lands and Natural Resources
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Interview: Alhaji Inusah Fuseini What changes can investors expect in existing royalty and windfall tax schemes? ALHAJI INUSAH FUSEINI: We believe in engaging with mining companies and investors to build a consensus on matters of concern for both the investor and us in order to resolve any issue that might arise. An additional windfall tax was considered when the gold price was very high in 2011, but it will never come into effect because the price of gold has dropped and because monitoring operational…

Interview

OBG talks to Toni Aubynn, CEO, Ghana Chamber of Mines
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Interview:Toni Aubynn How competitive is Ghana for mining investment? TONI AUBYNN: Ghana remains a highly competitive base with regards to foreign mining investment, but it has been under pressure recently. Some neighbouring countries have been following Ghana’s path to attract mining investment over recent years and are benefitting from recent changes in the country’s tax framework. Ghana benefits from its geological history, a solid human capital base as well as political stability,…

Analysis

Two-pronged challenge: Authorities confront the issues of illegal mining practices and weakening gold prices
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Of all the trends mining analysts track, the two biggest factors affecting Ghana’s gold industry in 2013-14 will be enhanced regulation by the government on illegal mining and the shifting price of gold. The country recently made international headlines for arresting 166 Chinese citizens using heavy equipment to illegally mine for gold. After arguing for years that the practice was undermining legal operations, industry groups welcomed the crackdown, a signal of commitment to further eradication.…

Analysis

Change with the times: Countries around the world are revisiting the rules they apply to the mining sector
OBG
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Over the past few years, with commodity prices spiralling ever higher and minerals like gold reaching record levels, many host governments have felt that they were missing out on potential windfalls from their extractive industries – much needed in an era of global belt-tightening. Amongst conditions of economic uncertainty, the mining sector – on the back of unprecedented profits during the commodity-boom years leading up to 2008 – has emerged as a prime candidate for resource-endowed…

Analysis

Change with the times: Countries around the world are revisiting the rules they apply to the mining sector
OBG
plus

Over the past few years, with commodity prices spiralling ever higher and minerals like gold reaching record levels, many host governments have felt that they were missing out on potential windfalls from their extractive industries – much needed in an era of global belt-tightening. Amongst conditions of economic uncertainty, the mining sector – on the back of unprecedented profits during the commodity-boom years leading up to 2008 – has emerged as a prime candidate for resource-endowed…