Mining
From The Report: Ghana 2016
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Once known as the Gold Coast, Ghana is a key player in the international gold market and Africa’s second-largest producer. In 2013, 86.6% of export revenues from the mining sector came from gold, making the metal the top export and source of foreign currency. Gold generated $4.2bn in 2013, compared with $3.2bn from oil and $1.3bn from cocoa. Growth has been hampered in recent years by external factors such as lower metal prices and internal ones like the rising cost of electricity and illegal mining. These difficulties have combined to boost costs and lower profit margins in the sector, and legal and regulatory changes are in the works. For now, exploration activity is minimal, but authorities hope that when global conditions for mining improve a boost in activity will follow.

This chapter contains an interview with Sulemanu Koney, CEO, Ghana Chamber of Mines.

Articles from this Chapter

Overview

Breaking new ground: Legal and regulatory changes are in the works to address challenges facing the sector
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The mining sector in Ghana, in particular gold mining, is one of Africa’s oldest, but growth has been hampered in recent years by external factors such as lower metal prices and internal ones like the rising cost of electricity and illegal mining. These difficulties have combined to boost costs and lower profit margins in the sector, and legal and regulatory changes are in the works. For now, exploration activity is minimal, but authorities hope that when global conditions for mining improve a…

Analysis

Keep it simple: New regulations are set to aid the fight against illegal mining
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The country has been attempting for several years to combat the problem of illegal mining, in which foreigners join or compete with indigenous, small-scale miners in an untaxed activity that is meant to be the preserve of Ghanaians. An update to the legislation covering the mining sector, if approved, will provide law enforcement agencies with additional powers to tackle the problem. The proposal is expected to be voted on in late 2015. While it is unclear how many people are involved, as many as…

Interview

Improving operations: OBG talks to Sulemanu Koney, CEO, Ghana Chamber of Mines
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Interview:Sulemanu Koney particularly heavy-duty equipment, in Ghana? SULEMANU KONEY: Most mining companies procure heavy-duty equipment and vehicles from the original equipment manufacturers, who may have a local office or representative in-country. In this regard, mining companies are somewhat insulated against the bottlenecks that are associated with clearing goods from the port, as the in-country office usually clears the equipment on the company’s behalf. However, importing other…

Analysis

A small fortune: The government is focusing on reforming small-scale mining
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The role of galamsey, or artisanal, small-scale miners, in Ghana has become increasingly important. This group is currently responsible for all diamond production and its share of gold production has more than doubled since 2008, as the rise in gold prices has attracted more people to try their hand at mining. These operators are currently not heavily regulated and do not pay taxes. Reforms aimed at changing this are likely in the coming years. Categorisation Ghana’s small-scale artisanal gold…