Gold mining in Ghana

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A large, sharp, equant, translucent, yellow, spinel-twinned or macle twinned Diamond (Super macle twinned Diamond)from Akwatia Diamond Mine and Birim Diamond Field at Akwatia in the Eastern Region; and a couple of inclusions add character to this thick, lustrous crystal. Diamond-41658.jpg
A large, sharp, equant, translucent, yellow, spinel-twinned or macle twinned Diamond (Super macle twinned Diamond)from Akwatia Diamond Mine and Birim Diamond Field at Akwatia in the Eastern Region; and a couple of inclusions add character to this thick, lustrous crystal.

Gold mining in Ghana has a long history, dating back to the 10th century when the region was part of the ancient Ghana Empire. Commercial gold mining began in the early 19th century, with Europeans establishing several mines during the colonial period. [1] [2] [3] The first documented large-scale mining operation in Ghana was at Obuasi, where gold was discovered in 1897. By 1900, Ghana, then known as the Gold Coast, had become a major supplier of gold in the British Empire. [4] [5] [6]

Contents

Ghana is renowned for its gold resources and is the largest producer of gold in Africa as of 2019. [7] [8] [9] [10] [11] [12] Major gold discoveries and mining activities have centered around the Ashanti Region and other areas such as Tarkwa, Akyem, and Prestea, forming part of the extensive Birimian and Tarkwaian gold belts. [13] [14]

Early gold mining

Ashanti Region has played a central role in gold mining in Ghana, dating back to the 19th century. Local artisanal mining, known as galamsey, predated industrial efforts. The Ashanti Goldfields Corporation was established in 1897, marking the start of large-scale industrial gold mining in Ghana [15] [16] [17]

Modern gold production

Large-scale gold mining in Ghana took off in the mid-20th century, with operations expanding in the 1980s due to rising gold prices. [18] [19] Companies such as AngloGold Ashanti and Newmont have operated extensive mines, contributing to Ghana's economy. [20] [21] [22]

In 2019, Ghana overtook South Africa as the leading gold producer in Africa, producing 142.4 tonnes of gold, representing 4.1% of global production.The sector accounts for over 90% of the country's mineral exports and remains an important part of Ghana's economy. [23] [24] [25] [26] [7]

Gold mining by region in Ghana

Ashanti Region

The Ashanti Region is historically and currently one of the major gold-producing areas in Ghana. The region is home to some of the largest gold mining companies in the country, including AngloGold Ashanti at Obuasi. Obuasi produced more than 35 million ounces of gold since its discovery in the late 19th century [27] [28] Additionally, the Ahafo South and Ahafo North in the Ashanti Region, home to Newmont Ghana's Ahafo Mine, is also a contributor to Ghana's gold output [29] [30]

Western Region

The Western Region, particularly the Tarkwa and Prestea districts, is another gold-producing area. Tarkwa, known for its large-scale open-pit mining, has been in operation for several decades and is one of Ghana's gold producers. [31] It is operated by Gold Fields Ghana and produced 504,000 ounces of gold in 2019. [32] Prestea, operated by Golden Star Resources, is another mining town that has produced substantial amounts of gold over the years. [33]

Eastern Region

In the Eastern Region, gold mining activities are centered around the Akyem mine, operated by Newmont Ghana. The Akyem mine, one of the gold mines in the region, began commercial production in 2013 and produced over 500,000 ounces of gold in 2020 [34] [35] [36]

Central Region

The Central Region of Ghana, with gold mining activities in towns like Damang, is another producer. The Damang Mine, operated by Gold Fields Ghana, produced 164,000 ounces of gold in 2019 [37] [38] [39]

Northern Region

While not as well known for gold mining as other regions, the Northern Region of Ghana has seen increasing interest in gold exploration, with Galiano Gold and other companies investing in small-scale mining projects in the region. [40] [41]

Western North Region

The Western North Region has gained attention for its artisanal gold mining activities, especially in areas like Sefwi Wiawso and Bodi. These areas have been known for their gold-bearing areas, and the growth of small-scale mining in this region has contributed to the overall gold production in Ghana [42]

Royalties

Gold mining companies in Ghana are required to pay royalties as a form of compensation for the extraction of the country's mineral resources. These royalties are governed by the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978), which establishes mechanisms for managing the royalties and ensuring that the benefits accrue to the state and local communities [43] [44]

Controversy

In 2020, the Ghanaian government introduced the Agyapa Royalties deal, designed to monetize a portion of the royalties through a special purpose vehicle listed on the international stock exchanges. The deal sparked public debate due to concerns about transparency and equitable benefits distribution [45] [46]

Related Research Articles

Newmont Corporation is an American gold mining company based in Greenwood Village, Colorado. It is the world's largest gold mining corporation. Incorporated in 1921, it owns gold mines in Nevada, Colorado, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru, and Suriname. In addition to gold, Newmont mines copper, silver, zinc and lead.

The Ashanti Goldfields Corporation is a gold mining company based in Ghana that was founded by Joseph Ellis and Joseph Biney both from Cape Coast. The Ashanti Mine, located at Obuasi, 56 km south of Kumasi, has been producing since 1897. During the turn of the century 1900, the Ashanti Goldfields Corporation was among the most important gold mining companies listed at the London Stock Exchange. The mine is sited on one of the world's major gold deposits and is one of the ten largest in the world.

<span class="mw-page-title-main">Tarkwa</span> Town in Western Region, Ghana

Tarkwa is a town and is the capital of Tarkwa-Nsuaem Municipal district, a district in the Western Region southwest of South Ghana. Frequently dubbed as the "Golden City" by its indigenous populace, the region is characterized by a rich tapestry of Fante communities, among which include Efuanta, Tamso, Aboso, Akoon, Nzemaline, and Kwabedu.

AngloGold Ashanti Limited is an independent and global gold mining company with a diverse portfolio of cooperation, projects, and exploration activities, formed in 2004 by the merger of AngloGold and the Ashanti Goldfields Corporation. As of 2022, it was a global gold producer with 21 operations on four continents, listed on the New York, Johannesburg, Accra, London and Australian stock exchanges, as well as the Paris and Brussels bourses, and left the Johannesburg exchange in 2023. As of May 2023, it was the world’s fourth-largest gold miner, with assets in Ghana, Australia, the US, and Argentina.

Samuel Esson Jonah is a Ghanaian businessman and the current chancellor of the University of Cape Coast. He is the executive chairman of Jonah Capital, an equity fund based in Johannesburg, South Africa. Jonah was previously president of AngloGold Ashanti and shared the strategic leadership of the company with its CEO, Bobby Godsell.

Prestea is a town in the Western Region, in southwest Ghana and about 50 km north of the coast of the Atlantic Ocean. It lies on the west bank of the Ankobra River, about 60 mi (100 km) northwest of Cape coast. The town is part of the Prestea-Huni Valley District. Prestea is the forty-sixth most populous in Ghana, in terms of population, with a population of 35,760 people. A railway line connects Prestea to Tarkwa and beyond to the coastal city of Sekondi-Takoradi.

Konongo is a gold bar mining and manganese mining community located in Ashanti, Ghana. The town serves as the capital of the Asante Akim Central Municipal. As of 2012, Konongo has a settlement population of 41,238 people. Konongo is about 53 kilometres (33 mi) from Kumasi, the Ashanti capital.

<span class="mw-page-title-main">Mining industry of Ghana</span>

Mining in Ghana is a significant contributor to the nation's economy, accounting for approximately 5% of Ghana's Gross Domestic Product (GDP) and 37% of total exports. Gold dominates the mineral sector, contributing over 90% of total mineral exports. In 2019, Ghana overtook South Africa to become the largest gold producer in Africa, producing 142.4 metric tonnes of gold that year.

Iamgold Corporation is a Canadian company that owns and operates gold mines in Burkina Faso and Canada. Headquartered in Toronto, the company was incorporated in 1990, and went public on the Toronto Stock Exchange in 1996, with additional shares being listed on the New York Stock Exchange beginning in 2005. The company formerly owned or had stakes in the Sadiola and Yatela gold mines in Mali, the Mupane gold mine in Botswana, the Niobec niobium mine in Quebec, as well as a royalty in the Diavik Diamond Mine.

<span class="mw-page-title-main">Birimian</span> African gold and diamond sources

The Birimian rocks are major sources of gold and diamonds that extend through Ghana, Côte d'Ivoire, Guinea, Mali and Burkina Faso. They are named after the Birim River, one of the main tributaries of the Pra River in Ghana and the country's most important diamond-producing area. Ghana and Mali are the second and third largest producers of gold in Africa, respectively.

There are different methods by which gold mining companies are ranked. One is by their annual production. Another is by their cash cost per ounce, that is, how much money it costs them to mine the gold. Since gold prices are the same everywhere, companies with lower costs per ounce make more profit. The most common method lists by market capitalization which considers the total value of capital holdings by that company. Also considered when comparing companies is their market capitalization per ounce of gold equivalent which takes the market value and total reserves and resources for each company as well as the price of gold into consideration. The figures for each company can be used to determine the value the stock market gives to each company's reserves on an ounce to ounce basis.

The Obuasi Gold Mine is an underground gold mine situated near Obuasi, in the Ashanti Region of Ghana. It was at one time one of the world's ten largest gold mines. The mine is in Obuasi Municipal District, 60 kilometres (37 mi) southwest of the regional capital Kumasi.

<span class="mw-page-title-main">Tarkwa-Nsuaem Municipal District</span> Municipal district in Western Region, Ghana

Tarkwa-Nsuaem Municipal District, as at 2024, is one of the fifteen districts in Western Region, Ghana. Originally, it was formerly part of the then-larger Wassa West District in 1988, which was created from the former Wassa-Fiase-Mpohor District Council, until the northern part of the district was split off to create Prestea-Huni Valley District on 29 February 2008; thus the remaining part has been renamed as Tarkwa-Nsuaem District, which was later elevated to municipal district assembly status on that same year to become Tarkwa-Nsuaem Municipal District. It has a population of about 218,664 people. The municipality is located in the eastern part of Western Region and has Tarkwa as its capital town.

<span class="mw-page-title-main">George Mireku Duker</span> Ghanaian politician

George Mireku Duker is a Ghanaian politician. He is serving as a Deputy Minister at Ghana's Ministry of Lands and Natural Resources since 2021, and is the Member of Parliament for Tarkwa-Nsuaem since 2017. He was elected into parliament on the ticket of the New Patriotic Party.

<span class="mw-page-title-main">Kubi gold mine</span> Inactive gold mine in Ghana

The Kubi gold mine is an abandoned open pit mine located 8 kilometres (5.0 mi) northeast of Dunkwa-on-Offin and 22 kilometres (14 mi) south of Obuasi, in Central Region, southern Ghana. It is 180 kilometres (110 mi) northwest of the national capital, Accra.

Akyem mine is an open-pit gold mine near New Abirem in the Eastern Region of Ghana. It is owned by Newmont. The mine was developed in 2005, with commercial production beginning in 2013.

Eric Asubonteng is a Ghanaian finance and mining executive. He is currently the senior vice president for Joint Ventures at AngloGold Ashanti and had previously served as the General Manager and Managing Director of AngloGold Ashanti's Obuasi Mine in Ghana.He succeeds former Senior Vice President and Managing Director Mark Morcombe, who leaves AGA Ghana after many years of devoted service.

Kwame Addo-Kufuor Jnr was a Ghanaian finance and mining executive who served as the president of the Ghana Chamber of Mines and the first president of the General Assembly of the ECOWAS Federation of Chambers of Mines (EFEDCOM).

Samuel Boakye Pobee is a Ghanaian mining executive, currently serving as the managing director of AngloGold Ashanti's Obuasi Mine.

References

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