The overall legislative framework for the mining sector in Ghana is provided by the Minerals and Mining Law of 1986 (PNDCL 153), as amended in 1994 and 2005. Other legislation that affects mining and mineral exploration in Ghana include the Minerals Commission Law of 1986 (PNDCL 154); the Small-Scale Gold Mining Law of 1989; the Investment Promotion Act, 1994 (Act 478); the Additional Profits Tax Law, 1985 (PNDCL 122); the Minerals (Royalties) Regulations, 1987 (LI 1349); the Environmental Protection Agency Act, 1994 (Act 490); and the Environmental Assessment Regulations, 1999, and as amended, 2002. The regulation of artisanal gold mining is set forth in the Small-Scale Gold Mining Law, 1989 (PNDCL 218). The Precious Minerals Marketing Corporation Law, 1989 (PNDCL 219), set up the Precious Minerals Marketing Corporation (PMMC) to promote the development of small-scale gold and diamond mining in Ghana and to purchase the output of such mining, either directly or through licensed buyers.
The Ministry of Lands and Natural Resources oversees all aspects of Ghana’s mineral sector and has responsibility, acting in concert with its agencies, for granting mining and exploration licenses. Within the Ministry, the Minerals Commission has responsibility for administering the Mining Act, recommending mineral policy, promoting mineral development, advising the Government on mineral matters, and serving as a liaison between industry and the Government. The Geological Survey Department conducts geologic studies. The Precious Minerals Marketing Corporation (PMMC) is the Government entity responsible for promoting the development of small-scale gold and diamond mining in Ghana and for purchasing the output of such mining, either directly or through licensed buyers. The Mines Department has authority in mine safety matters. All mine accidents and other safety problems also must be reported to the Ghana Chamber of Mines, which is the private association of operating mining companies. The Chamber also provides information on Ghana’s mining laws to the public and negotiates with the mine labor unions on behalf of its member companies.
The following are investment opportunities in the mining sector:
Ghana boasts of several million ounces of proven gold reserves and most parts of Ghana lie within the Pre-Cambrian Guinean shield of West Africa, Birimian, Tarkwaian and Dahomeyan systems, the Togo series and the Buem Formation. In addition to seven operating gold mines in Ghana as of end 2007, there were over 200 gold reconnaissance and prospecting licenses issued by the Government of Ghana to both local and foreign companies. Opportunities therefore exist for joint venture operations with license holders
Ghana already produces over two million ounces of gold per annum, most of which are exported in bullion form for refining abroad. Feasibility studies confirm the viability of refining gold in Ghana, with potential to serve other gold producing countries in the West Africa region.
One of Ghana’s oldest diamond mines in Akwatia, the Great Consolidated Diamonds Limited, is currently under disinvestment and seeking strategic. Known reserves in the mine, which has a concession of over 240 sq km, exceed 24 million carats with other known minerals also present.
Bauxite ore deposits in Ghana are estimated at over 600 million metric tonnes. Ashanti region has the largest reserves at Nyinahim, estimated at over 350 million metric tonnes with a high content of alumini and silica. In the Eastern Region, on the Atewa range, ore reserves are estimated to be over 201 million metric tonnes. Ores remain unexploited and there are opportunities for both bauxite production and establishment of alumina plant to process ores.
The bauxite ore currently being mined at the Awaso mine in Ghana meets the chemical requirement for the manufacture of alum for water treatment. Market studies conducted for the ECOWAS market of 250 million plus have identified a potential annual demand of about 80, 000 MT of alum.
Clay deposits in economic reserves occur in all regions. Some of the deposits, particularly those occurring at Apinamang in the Eastern Region have been proven to be suitable for paint manufacture. Other deposits are good for brick production, ceramics, roofing tiles etc.
Kibi in the Eastern Region and Abandze-Saltpond in the Central Region have large deposits of Kaolin. The deposits could be used industrially for the manufacture of tiles and household utensils. They could also be used as a basic raw material for the paper industry, insulators, powder and as filter in the manufacture of pharmaceutical products. Interested investors are welcome.
Fifteen hills extending over a distance of 24km from the Oppon Valley at Oppon-Mansi in the Western Region contain huge reserves of high-grade iron ore estimated at over 150 million tonnes. The deposits are suitable for commercial development. Other deposits are at Shieni and Pubo.
There are two major limestone deposits in Ghana, situated at Nauli in the Western Region and Buipe in the Northern region. The Nauli deposit of limestone is estimated at over 400 million tonnes which could be used for the production of cement clinker to substitute all imports of clinker, required by Ghana's two major cement mills at Takoradi and Tema. The Nauli deposits could yield over 1.4 million tonnes clinker per year, by means of the dry process using 12mm scfd of natural gas. The average CaO content of the deposit is 51.8%. In Buipe the limestone and mudstone deposits are with estimated at over 6.03 million metric tonnes. The limestone and dolomite reserves in that area are also estimated at over 44 million metric tonnes. Limestone also occurs at Bango-Da (over 15 million metric tonnes of limestone and over 30 million metric tonnes of dolomite) and Daboya over 162,000 metric tonnes of limestone and over 500,000 metric tonnes of dolomite.
Ghana has numerous manganese occurrences and one producing mine at Nsuta. There is however the Yakau-Himakrom deposits in the Western Region with reserves estimated at over 4.9 million tonnes of unwashed ore which could yield over 3.2 million tonnes of washed ore. The ore has average manganese content of over 42% and potential for carbonates to be converted into nodules.
Other deposits are located south of Aketechi and west of river Butre in the Western Region. These have a low percentage of manganese oxide and contain manganiforous garments. Estimated reserves at over 820,000 tonnes of unwashed ore with a manganese content of over 32%. Odumase near Konongo: Odumase has manganese deposits estimated at over 1.7 million metric tonnes. The deposits have manganese content of 19.7%.
For additional information on the minerals and mining sector of Ghana, please contact:
The Chief Executive,
Post Office Box M.248
Tel: +233 (21) 771318/773053/772783
Fax: +233 (21) 773324