With an output of 4.8 million ounces of Gold in 2018, Ghana surpassed South Africa to become number one Gold producer on the continent and one of the world’s top ten gold producers. Gold is this the core of the country’s mining and quarrying activities. Ghana also has large reserves of other minerals such as manganese, bauxite, manganese, iron ore and diamonds. Mining and quarrying together contributed US$4.2 billon to the nations GDP as at the first three quarters of 2019 indicating a 13.3 % increase for the same period in 2018.
Following a wave of investments, the mining and quarrying sector saw its growth propelled by an average of 17.5 percent by second quarter of 2019(Fin min budget 2020). In the same period, export proceeds from the sector as revealed by the ministry of lands and natural resources was US$ 3.3 billion compared to US$ 3 billion generated over the same period in 2018, making the mining sector a major foreign exchange earner for the country.
Mining activity is currently under the supervision of the Ministry of Lands and Natural Resources and regulated by the Minerals Commission of Ghana. The Precious Minerals Marketing Company (PMMC ) is also charged with the task of processing and trading in precious minerals for both the local and export market whereas the Ghana Chamber of Mines remains the main minerals industry association in Ghana.
Based on performance, key players in the mining sector include Newmont mining Corporation, Goldfields Ghana Limited, Golden Star Resources, Chirano Gold Mine and AngloGold Ashanti.
Although Gold production is the most dominant of the country’s minerals, government in recent times is stepping up efforts to ramp up commercial production of other minerals. The Government of Ghana’s integrated bauxite and aluminum project seeks to harness the entire aluminum value chain through public-private partnership for the establishment of an aluminum smelter, the development of three new bauxite mines and iron and steel reserves.
On the whole, these initiatives anchored on a strong regulatory system, favorable incentives and a stable economy makes Ghana’s mining sector a best bet for foreign direct investments.