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Mining Investments Hit $14bn |
 | Ghana stands the chance of benefiting from a $14 billion mining investment by 2010. According to industry sources such as Natural Resources Canada (NRC), estimated mining investments in Africa will reach $14 billion by 2010 from $7 billion in 2006, with much of the investments expected to be in West, Southern and Central Africa.
Thus Ghana could reap substantially from the investments,
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a move that has compelled the government to review its mining laws in order to harvest significantly.
Dominated by Ghana as well as Senegal, Guinea, Niger, Mali, Burkina Faso and Ivory Coast, the West African Mining industry is fast gaining recognition in the resources world.
Home to well-known deposits and an impressive history of producing mines, the region now is a preferred mining destination.
In addition, mining giants such as Newmont and AngloGold Ashanti as well as relatively new entrants such as Rangold Resources, Keagan Resources, Red Back Mining, Golden Star Resources, and African Gold Group are expected to help script the future of West African mining sector with their projects and investments.
Successful discoveries or advanced stage projects by these companies may well become acquisition or joint venture targets by larger companies leading to capital gain opportunities.
From a governance perspective, some West African nations have made considerable progress and rank alongside South Africa, which has a developed mining environment. Mali, Ghana and Burkina Faso rank high on contract enforceability and property registration.
Investments however are more linked to the political stability, and high ranked countries such Ghana, Mali and Benin which have enjoyed the lion’s share.
West Africa owes its gold riches to the Birimian greenstone belt, which hosts some of the largest gold deposits in the world, including Obuasi, Bogosu, Prestea, Bibiani in Ghana.
It is also the home for many prominent projects such as Newmont’s 18 million ounce discovery in Akyem and Ahafo and AngloGold Ashanti’s 66 million ounce discovery in Obuasi, Bibiani and Iduapriem-Teberebie.
According to industry sources, there is ample potential for more deposits on the Sefwi belt where Newmont has the Ahafo mine and in the Asankrangwa belt. Ghana in other words remains under-explored.
Amongst West African countries, Ghana is the largest gold producer with much of the mining observed around the Ashanti gold belt.
Benefiting from high metal prices and consequently a thriving resources sector, Ghana’s economy has performed well but could do better.
According to the World Bank, the GDP has increased progressively from 3.7 percent in 2000 to 6.4 percent in 2007 with a further 2.8 percent growth expected for 2008.
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