This is a best prospect industry sector for this country. Includes a market overview and trade data.
There is history of mining in Ghana that pre-dates the colonial era and is the reason Ghana was known as the Gold Coast. Most Ghanaian mining production was state owned, but since the Economic Recovery Program entered by the PNDC government in 1983, Ghana has attracted foreign investments and pushed towards privatization and state divestiture. Mineral rights are granted to private parties giving them the right to mine the minerals in the ground. However, the Government of Ghana is entitled to 10% free carried interest in the rights and obligations of the mineral operations but does not make any financial contribution. The government can however obtain further participation in mineral operations upon agreement with the holder.
It is important to stress, that under the mining laws of Ghana, a foreign investor is not mandated to have a partner to participate in the mining industry as pertains to the oil and gas, gaming and other sectors of the economy. American companies can either engage in joint ventures or operate as a wholly American company. However, the small-scale mining industry is reserved for Ghanaians.
Some of the major mining companies in Ghana are Newmont Goldcorp (American), Canadian and Australian. There are also South African companies such as Goldfields and AngloGold Ashanti.
While the laws of Ghana permit 100% foreign ownership, there is an increasing drive towards local participation especially in the provision of mine services. Companies wanting to invest must be ready to have strong corporate social responsibility initiatives. Some mining communities and civil society organizations have accused mining communities of profiting from their communities but neglecting the development of infrastructure in the communities.
Ghana discovered commercial quantities of lithium in 2018 and hopes to attract investors to mine and develop a value chain in the Volta Region.
The mining sector plays a vital role in the Ghanaian economy, as it attracts more than half of all foreign direct investment (FDI) and generates more than one-third of all export revenues. The mining industry is the largest tax-paying sector in the country and makes a significant contribution to gross domestic product (GDP) and employment. The mining sector contributes 37 percent of export revenues and 19 percent of all direct tax payments in Ghana.
Gold is the most commercially exploited mineral in Ghana, accounting for about 95% of the country’s mineral revenue. Today, Ghana is Africa’s largest gold producer, having overtaken South Africa in 2019 with 4.8 million ounces in output compared to South Africa’s 4.2 million ounces.
Other commercially exploited minerals in Ghana are manganese, bauxite and diamonds. The country is also endowed with deposits of iron ore, limestone, columbite-tantalite, feldspar, quartz and salt, and there are also minor deposits of ilmenite, magnetite and rutile.
Sub-sector best prospects
According to the Ghana Investment Promotion Center, emphasis on investment promotion has been a major objective of the industry with a shift to a comprehensive vision that facilitates greater exploitation of Ghana’s industrial minerals. Investment opportunities in the industry are in the areas of exploitation or production and industrial processes. They include:
- Companies to set up refinery facilities to serve the local industry for value-added products.
- Companies to exploit and produce solar salt. Potential exists for the utilization of part of the salt to produce caustic soda which is a raw material for the soap and detergent industry. The chlorine co-product can also be used as water treatment chemical and serve as raw materials to produce various health and sanitation chemicals.
- Companies to produce clinker for the mining industry. Demand for clinker is estimated at over one million metric tons per annum.
- Companies to exploit the extensive deposit of granite to produce high quality floor tiles.
- Companies to produce dimension stones for the building industry
- Suppliers to supply salt for the local market.
Engineering and Services
- Service companies to provide support services, including contract drilling, assay laboratories, contract mining and geological consultancies to mining companies in the country.
- Companies to set up manufacturing plants and machinery for the mining industry.
- Companies to set up downstream production facilities to manufacture key input for the mining industry. Examples, mill balls, drill bits, cyanide and activated carbon.
Ghana investment Promotion Center