Ghana To Be Africa’s Mining Hub. Ghana is a West African country that stretches
from the Gulf of Guinea to the Atlantic Ocean to the south, sharing borders with the Ivory Coast
in the west, Burkina Faso in the north, and Togo in the east. Ghana has a total area of 238,535
km2 (92,099 sq mi), encompassing a wide range of biomes from coastal savannas
to tropical rain forests. Ghana is the second-most populated country in West Africa,
after Nigeria, with about 31 million inhabitants. Accra is the country’s capital and largest city;
other notable cities include Kumasi, Tamale, and Sekondi-Takoradi. Ghana was the world’s seventh
largest gold producer in 2019, with 140 tonnes produced that year. Ghana’s output surpassed South
Africa’s for the first time, making Ghana Africa’s top gold producer. Ghana exports silver, lumber,
diamonds, bauxite, and manganese in addition to gold, and has countless additional untapped
mineral reserves. Ghana is ranked ninth in the world in terms of diamond exports and reserves.
Ghana’s government has devised plans to nationalize the country’s mining industry
in order to boost government revenue. The mining sector has molded Ghana’s economic environment,
and while mineral extraction has aided the country’s development, the country’s mineral
potential has gone untapped. It is believed that as interest in the country’s mineral sector rises,
more mineral reserves will be discovered. Ghana is a rapidly expanding market. Upstream of the value
chain, annual industry procurement spending in West Africa averages $1.2-billion out of
a total of $2.6-billion. Hello there. Welcome
to Africa Reloaded and thanks for joining us. In today’s video, we will be looking at
how Ghana is said to become Africa's mining hub. With the help of the Minister of Lands
and Natural Resources, this is finally coming to a reality. Stay connected and be rest assured
that you will be getting the best of whatever you desire to know after watching this video.
Contributions From The Minister of Lands and Natural resources.
Samuel AbdulaiJinapor, the Minister of Lands and Natural Resources,
is recruiting mining corporations to help turn Ghana into an African mining centre.
He explained that the government was now working to connect diverse value chains in order to
create jobs and income. He said the government was working on developing a mining financial centre,
among other things, as part of the environment needed to grow the mining business.
Mr Jinapor was addressing in Tarkwa, Western Region, yesterday after visiting
Goldfields Ghana Limited to check their level of operations. Despite the government’s efforts,
he said, the lack of cooperation by mining firms would stymie any progress that could be made.
“We couldn’t get by without the support of firms like Goldfields.
We should not work with adversaries in mind. We must collaborate as partners on a common goal.
I am determined to helping Goldfields and all other mining firms succeed
“Mr. Jinapor explained. He stated that the government would continue to ensure that all
recommendations aimed at making mining and related operations safer and healthier are implemented. He
praised the corporation for reclaiming and replanting mined lands, noting that greening Ghana
was another area that required everyone’s help. Green Ghana is a government flagship program,
and I applaud you for incorporating it into your operations. “Let us join the global
fight against climate change by greening our country,” the Minister concluded.
Contributions From the General Manager of Goldfields Tarkwa Mines.
Goldfields Tarkwa Mines General Manager Stephen Osei Dempah said the company had
switched from owner to contractual mining using two local contractors since 2018. Since 1998, the
company has invested US$79 million in the rehabilitation, closure, planning,
and alternative livelihood program, which includes the development of oil palm seedlings and
economic plants, he said. From 2010 to 2021, he added, the company improved its safety systems,
resulting in a reduction in injuries from 69 to five. Mr Dempah stated that the company
currently processes 40 million tonnes per year with a 97 percent processing recovery rate.
He said Goldfields was doing feasibility studies to establish project viability and next measures
to prolong the Tarkwa mine’s life by ten years. On corporate social responsibility,
Stephen Osei-Dempah stated that the Gold Fields Tarkwa mine has helped local companies such as
Western Tranpo Service and ZEN grow into international mining services providers,
and that the mine will continue to support the educational, sports,
and health sectors with infrastructure resources, such as the $16.2 million
Tarkwa sports stadium rehabilitation, which will have a capacity of 10,400 people once completed.
The Minister was also given a quick tour of the Tarkwa Mine, specifically the Gold Room,
where gold is smelted and poured, during his working visit.
Mining’s contribution to Ghana’s economy. -Over the past 20 years of peaceful multi-party
democracy, the country has drawn significant mining investment due to its well-known and
lucrative mineral resource base. As a result, the mining industry has played a vital role in
our economy, with gold accounting for almost 90% of the total. Ghana is Africa’s second-largest
gold producer and the world’s ninth-largest gold producer. In 2011, the sector directly contributed
38.3% of total corporate tax earnings, 27.6% of government revenue, and 6% of GDP to Ghana.
-The large-scale mining industry employs 28,000 people, while the small-scale gold, diamond,
sand-winning, and quarry businesses employ over 1,000,000 people. Ghana produced 3.6 million
ounces of gold in 2011, the largest amount in the country’s history. Over $5 billion in export
revenues emerged as a result of this. It’s worth noting that small-scale miners produced roughly
28% of overall gold production in 2011. From 1983 to 2011, total direct investment (DI) into the
minerals and mining sector was $11.5 billion. -When the industry is integrated into the
economy, it has a lot of capacity beyond direct fiscal receipts. Additional fiscal
revenues from mining-related operations, employment generated by these activities,
inputs supplied for other sectors, research and development efforts, and technology transfers
are all ways to achieve this. Mining has so aided the development of sectors
such as banking, financial services, transportation, and logistics, among others.
Current issues Facing The Mining Industry. However, in order to fully realize the
sector’s potential to contribute to socioeconomic development,
a number of key challenges must be addressed, including insufficient linkages between the
mining sector and the rest of the economy, as well as the sector’s lack of diversification,
which is heavily reliant on gold. -The legal framework in which mining
operates has a number of flaws, the first of which is its ability to maximize financial
gains and assure – and demonstrate – a fair and equitable distribution of mining profits.
-Another issue confronting the mining law framework is the regulation of artisanal and
small-scale mining, particularly the threat of illegal mining. This refers to locating
suitable places as well as raising awareness among such miners about the importance of regularizing
their activities and operating legally, efficiently, and environmentally benign .
Interventions aimed at resolving the issues. To address these issues, recent reforms and
solutions have been implemented. Among these are; -The revision of the draft national minerals
and mining policy aims to bring together numerous mining policies into one national minerals and
mining policy, with the guiding principle of “Sustainable Development via Mining.” It has
undergone considerable stakeholder consultation and is expected to be adopted by the government
soon. Parliament has passed a variety of legislation covering a wide range of topics,
including the environment, local content, and mineral licensing, among others.
-A study of the fiscal system is also underway, as part of a coordinated effort
to improve the distribution of mining profits. This includes the creation of a framework for
reviewing inequitable legislative provisions and a multi-agency mining revenue taskforce charged
with ensuring effective and efficient revenue collection and suggesting legal policy changes.
-They are also working to address social challenges in the industry. Baseline data
on social disputes has been compiled, as well as regulations and guidelines on mine closure
and post-closure, compensation, corporate social responsibility, and district/municipal assembly’s
usage of mineral revenues. -In terms of improving linkages and
multiplier effects, the International Finance Corporation is supporting efforts to boost local
content development in mining operations (IFC). This has included the creation of a database
of goods and services needed by the mining industry, the identification of select local
enterprises that can service mining companies, and the expansion of local enterprise capacity.
Finally, we are members and participants in several initiatives, including the
Extractive Industries Transparency Initiative, the African Union’s African Mining Vision, the
ECOWAS Directive on the Harmonization of Guiding Principles and Policies in the West African Mining
Sector, and the Inter-governmental Forum on Mining Metals and Sustainable Development.
With nine active mines and one project in Australia, Chile, Peru, and South Africa,
Gold Fields Ghana Limited is one of Africa’s largest gold producers
and Ghana’s largest. This is one of the main reasons why the government of the country
is doing everything possible to make Ghana a mining hub.
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