Ghana has a long and prosperous mining history. More than 100 years ago, it was one of the first countries in West Africa to explore gold mining. Today, Ghana produces over 2 million ounces of gold per year. Minerals make up 35% of the country's export income. Gold is the major money-maker, with other minerals including manganese, bauxite and diamonds. Quarrying in Ghana consists mostly of smaller-scale operations that produce sand, gravel, cement, limestone, and granite. Large and small-scale mining operations provide an estimated 524,000 jobs for Ghanaians.
Past Investment
An estimated $6.7 billion was invested in Ghana's mining and minerals sector between 1994 and 2008. This large influx of capital boosted the productivity of the industry, and led to $2.2 billion in gold exports in 2008.
Financial Incentives
In recognition of the significant contributions gold and mineral exports make to the Ghanaian economy, the government made mineral exploration and exportation a significant part of the Economic Recovery Programme (ERP). This programme introduced financial incentives and tax breaks for companies in the mining industry and set up institutions and regulations to oversee industry activities.
Major Companies
Over the past 80 years, many foreign companies have entered the mining and quarrying industry in Ghana. Today, some of the biggest players in gold mining include Anglo Ashanti, Golden Star, Newmont, Gold Fields, and Kinross. Major players in mining other minerals include Alkoa, Ghana Manganese and Consolidated Diamonds.
Infrastructure
Exploration takes mining companies to remote areas and setting up mining operations in these areas can be a challenge due to inadequate roads. Companies often have to mobilize their own power and water supplies to reach remote areas, which increases costs associated with exploring and setting up mining sites. Consequently, most of the gold and mineral exploration in Ghana is done by large international companies that can fund extended exploration endeavors.
Investment
The process of exploration becomes too expensive to go beyond the reconnaissance phase for most local companies, at which point they either have to partner with a larger company or seek financing from outside sources in order to continue their exploration. Such companies are good opportunities for investors looking to support local exploration efforts.
Investment in this area also creates jobs for the community, produces more skilled workers and creates opportunities for entrepreneurs. Local companies are looking for investors to provide financial assistance with setting up and maintaining mining sites throughout the country. There is also room for foreign companies to enter the industry on exploration missions and to set up their own facilities for extracting and refining minerals.
Mineral Refineries
As big as the mining industry is in Ghana, gold and other mineral refineries are extremely limited. As recently as 2005, there were no refineries operating in Ghana. Still today, most of the minerals mined in Ghana are exported to foreign refineries, and are then imported again for local use and sale3. This is obviously a big drain on the local industry and significantly raises the costs of raw materials for Ghana's other industries as well. Investment in the field of gold and mineral refinement would positively impact industries all throughout Ghana, from real estate and construction, to textiles and manufacturing. Building up mineral refineries in Ghana could also serve the gold and mineral producing countries surrounding Ghana that also lack infrastructure for mineral refinement1.
Construction Materials
With increased construction going on in real estate and infrastructure development there is high demand for construction and industrial materials, such as granite, cement, sand, and rock. Because Ghana's quarries produce large amounts of these materials, there is great opportunity for investment in this area. Most of the quarrying is done by smaller-scale local operations, many of which are seeking partners or financial assistance to improve their operations and increase their output. Many companies are interested in partnering with other small-scale operations or entering into joint ventures with new companies. Foreign entities also have opportunities to set up their own operations in this sector to supply the growing construction and infrastructure development industries.
Skilled Labor
Ghana's mining industry enjoys many advantages that make it an attractive option for investors. Because Ghana has such a long history in the mining industry, there is a large pool of skilled and semi-skilled mine workers from currently operating and recently-closed mines. To date, the industry has a good safety track record and has solid systems in place to maintain personal and environmental safety. Also due to its long history and intense international interest, detailed, accurate information on Ghana's mineral deposits (such as maps and satellite images) is readily available.
Conclusion
Investment into Ghana's mining and quarrying industries will help to make these already lucrative industries more efficient and more productive, ultimately increasing profits across the board. Now is a very exciting time to enter the mining and quarrying industry as market prices are high and Ghana's gold, mineral and stone deposits run deep