AMN - Ghana back on the watch list - comment by Yolanda Torrisi

Ghana appears to be back on the watch list for investment and growth of its mining industry. Prospective geology, a new government and improving global mining conditions have combined to put the West African nation back in the spotlight.

The missing links as far as realising its full potential are permitting delays, ongoing social problems and the dark cloud of corruption which has hung over the country for years. If these are mitigated, or even stamped out, then it would be full steam ahead.

Randgold Resources’ Mark Bristow has shown some interest in investing previously but backed away, deterred by Ghana’s problems. His renewed interest has been sparked by the new government led by conservative Nana Akufo-Addo and he recently said that Randgold would reconsider providing a stability agreement could be arranged with the State as it was impossible to take big capital into Ghana without a contractual partnership with government.

The gold-rich nation is attracting investment from other parties, especially for underground reserves which are becoming more feasible to mine given the improvement in gold prices.

Newmont Mining appears certain to agree to invest $290m to $380m in the underground expansion of its Ahafo mine. Production from Ghana accounts for about 18% of Newmont’s total 4.8 million to 5 million ounces and this proportion may increase.

Resolute Mining is investing about $72m in Ghana at Bibiani, a project which will add 100,000 ounces a year to its annual production with MD John Welborn saying that he has a lot of faith in the long-term resource and human potential of Ghana and Africa as a whole.

Golden Star Resources will invest $80m in underground expansions at its Wassa and Prestea properties. CEO Sam Coetzer said he believed the new government was more conservative than previously and more welcoming for investment, particularly in mining.

Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the African continent. Contact:yolanda@yolandatorrisi.com