Gold miners flock to Ghana which takes mantle as Africa’s largest gold producer

Asanko Gold Mine, Ghana

GHANA is forecast to consolidate its position as Africa’s largest gold producer taking a mantle longed possessed by South Africa, said Bloomberg News.

The proposed re-start of the Obuasi gold mine owned by AngloGold Ashanti, is expected to add 350,000 to 450,000 ounces a year to Ghana’s total output which at 4.8 million ounces in 2018 eclipsed South Africa’s output of 4.2 million oz for the first time.

In addition to AngloGold Ashanti, Gold Fields is also shifting its attention to Ghana where mining is easier technically and from a regulatory point of view. Another miner, Newmont Mining, has a long established position in the West African country.

“It’s an important part of our portfolio and, geologically we see really good potential to continue to expand,” said Newmont Mining CEO, Gary Goldberg in an interview. “We’re very happy operating in Ghana.”

Gold Fields, which has operated in Ghana for 26 years, told Bloomberg News that the authorities there understand what makes for a “sound” business environment. Ghana cut corporate taxes in 2016 and in 2017 changed Gold Fields’ mineral royalty to a sliding scale based on the gold price, from a 5% flat rate.

“The government of Ghana’s 10% free-carry stake in all mining companies provides a level of security to the investment,” said Sven Lunsche, spokesman for Gold Fields.