Mining industry of Ghana
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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.[1][2][3] In 2019, Ghana overtook South Africa to become the largest gold producer in Africa, producing 142.4 metric tonnes of gold that year.[4][5][6][7]
Ghana's mining sector produces minerals such as bauxite, manganese, natural gas, petroleum, salt, silver and diamonds.[8][9] In 2020, the country produced approximately 1.16 million metric tons of bauxite, ranking it among Africa's top bauxite exporters.[10][11][12][13] In recent years, Ghana has identified substantial lithium deposits.[14][15][16]
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Mining in Ghana predates colonial times, with evidence showing that gold mining in the region has been carried out for centuries. Indigenous communities mined gold along riverbanks such as the Pra and Ankobra Rivers using rudimentary tools, long before the arrival of Europeans. Gold played a central role in the development of the Ashanti Empire, which traded extensively with North Africa and Europe through trans-Saharan trade routes.[17][18][19]
With the arrival of Portuguese explorers in the 15th century, European powers began to recognize the region’s vast gold reserves. By the late 19th century, during British colonial rule, commercial mining operations began to take shape. The establishment of the Gold Coast Colony in 1821 marked the beginning of organized gold mining, primarily in areas such as Obuasi and Tarkwa, which would later emerge as major mining hubs.[20]
The Ashanti Goldfields Corporation, established in 1897, became a significant player in the industry and contributed to the Gold Coast's economy. Colonial authorities constructed railways and ports to facilitate the transportation of minerals.[21][22]
Following Ghana's independence in 1957, the mining industry saw a shift in focus. This led to the establishment of the Ghana State Mining Corporation (GSMC) in 1961, which was later reincorporated as the State Gold Mining Corporation (SGMC) in 1964. The SGMC took over operations of several mines, including those in Obuasi and Tarkwa, aiming to maximize national revenues from gold mining.[23][24]
The economic reforms of the 1980s and 1990s under the Structural Adjustment Program initiated a liberalization of the mining sector. This period saw the influx of foreign direct investment, particularly from companies in Canada, Australia, and South Africa. Key legislative reforms, such as the Minerals and Mining Act of 2006, aimed to attract investors and ensure sustainable practices in the sector.[25][26] During this period, large-scale mining projects, such as AngloGold Ashanti's Obuasi mine and Newmont Goldcorp's Ahafo mine, began producing gold. By 2019, Ghana had overtaken South Africa to become Africa’s largest gold producer.[27]
While large-scale mining dominates Ghana’s economy, small-scale and artisanal mining (locally known as "galamsey") also flourish, particularly in rural areas. These activities, often informal and unregulated, contributes to gold production but brings challenges such as environmental degradation and conflicts over land use.[28][29]
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Gold
Ghana is one of the largest gold producers in Africa, and it ranks as the sixth-largest producer globally.[5] Gold has been central to the country's economy for decades. In 2023, Ghana produced around 4.2 million ounces of gold, contributing to approximately 4% of the world’s total output. The main gold-producing regions are Ashanti, Western, and Eastern regions, with major players including Newmont, Gold Fields, AngloGold Ashanti, and Kinross Gold. Gold exports in 2022 accounted for about 12.3% of Ghana's GDP.[30][31][32]
The country’s gold deposits are primarily located within two major goldfields: the Ashanti Gold Belt and the Western Region Goldfields.[33][34] The Ashanti Gold Belt, in particular, is home to some of the most notable gold mines in the country, including the Ahafo and Akyem mines, both operated by Newmont. The Obuasi mine, one of the oldest gold mines in Ghana, is also situated within this region and is operated by AngloGold Ashanti. The mine has been in operation since the 1890s and remains one of the largest contributors to Ghana's gold output.[35]
In the Western Region, the Tarkwa and Damang mines are major players in the gold sector. Tarkwa, operated by Gold Fields, is one of the largest gold mines in the country and has been producing gold since 1998. The Damang mine, also operated by Gold Fields, is a contributor to Ghana's gold exports.[36][37]
Manganese
Manganese is another key mineral in Ghana. The country ranks as Africa's second-largest producer of manganese, with production reaching approximately 2.5 million metric tons in 2022.[38] In 2022, Ghana exported $436 million in manganese ore, making it the fourth largest exporter in the world.[39][40] The main destinations for Ghana's manganese ore exports are China, Ukraine, France, and the Netherlands.
Ghana’s manganese reserves are primarily concentrated in the Western Region, where the country’s main manganese mines are located. The Ghana Manganese Company Limited (GMCL) is the sole producer and exporter of manganese in the country. GMCL holds a mining concession over 170 square kilometers in the Western Region, centered around Nsuta. The Nsuta mine has been operational since 1916, making it one of the oldest manganese mines globally.[41][42]
Bauxite
Ghana holds significant bauxite deposits, an ore essential for aluminum production.[43][44] As of 2022, Ghana produced approximately 1.5 million metric tons of bauxite, making it an important player in the global bauxite market.[45] The country’s bauxite reserves are primarily concentrated in the Awaso and Nyinahin areas, which are the main sources of the country’s bauxite production.[46][47]
Iron ore
Iron ore mining in Ghana is still in its early stages.[48][49] In 2022, the country produced an estimated 920,000 metric tons of iron ore, with production expected to increase as the industry matures.[50] Ghana’s iron ore reserves are primarily located in the Western and Northern regions, notably in the Bawdie and Shieni areas, which are recognized for their significant iron ore deposits.[51][52]
Diamond
Diamond is another notable contirbutor to the country’s economy.[53] In 2023, Ghana produced approximately 203,000 carats of diamonds, primarily sourced from alluvial deposits in the Akwatia region.[54] The diamond industry in Ghana is largely export-driven, with a smaller domestic industry focused on cutting and polishing. The majority of Ghana’s diamonds are exported to international markets, contributing to the country's mining exports.[9]
The Akwatia region, located in the Eastern Region of Ghana, is the principal source of diamonds in the country. The area has been known for its diamond deposits since the 1920s, and mining operations have been ongoing since then.[55][56][57]
Petroleum and natural gas
Ghana's oil and gas industry has experienced notable developments in recent years.[58] In 2022, the country produced approximately 60,000 barrels of oil per day and 200 million cubic feet of natural gas daily, primarily from offshore fields such as Jubilee and TEN.[59][60] Ghana's petroleum industry generated a record revenue of US$1.43 billion in 2022, the highest since the inception of oil production in the country.[61][62][63]
The Jubilee field, situated approximately 60 kilometers offshore in Ghana's Western Region, was discovered in 2007 and is the country’s flagship oil field. It started production in 2010 and is operated by Tullow Oil, with other partners including Kosmos Energy, Anadarko, and the Ghana National Petroleum Corporation (GNPC).[64] The field has been a significant contributor to Ghana's oil industry, with production reaching 300 million barrels by October 2020.[65][66]
Salt
Salt production in Ghana is an essential industry that plays a significant role in both local consumption and export.[67][68] In 2022, Ghana produced approximately 1.2 million metric tons of salt, making it one of the leading producers in West Africa.[69] The majority of the salt is harvested through evaporation ponds along the coastal regions, with the Greater Accra and Volta regions being the primary production areas.[70][71] In 2022, Ghana exported $4.36 million worth of salt, ranking it as the 59th largest exporter globally.[72]
Silver
Silver mining in Ghana is minimal compared to gold and it is produced in smaller quantities as a by-product of gold mining.[73] In 2022, Ghana's silver production was estimated at approximately 10,000 metric tons, primarily extracted during the processing of gold ores. While silver plays a secondary role in Ghana’s mining industry, it still contributes to the overall mining sector, alongside gold and other minerals.[74]
The country’s silver production is primarily tied to gold mining operations in the Ashanti, Western, and Eastern regions, which are the main hubs for gold extraction. Major players like Newmont, Gold Fields, and AngloGold Ashanti oversee extensive mining operations in these areas, where silver is often recovered during the refining process of gold. Additionally, the Obuasi mine, also produces a small amount of silver as a by-product of its gold production.[75]
Lithium
Lithium is emerging as a significant focus of Ghana’s mineral exploration efforts. The country has identified lithium deposits primarily in the Ashanti and Western regions, with several exploration projects underway.[76][77][78][79]
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Economic development
The mining sector in Ghana has contributed to the nation's economic growth, with gold being a central export commodity. In 2023, Ghana produced approximately 4.2 million ounces of gold, accounting for about 4% of the world's total output.[80] The primary gold-producing regions include Ashanti, Western, and Eastern regions, with major players such as Newmont, Gold Fields, AngloGold Ashanti, and Kinross Gold. Gold exports in 2022 represented approximately 12.3% of Ghana's GDP.[81] Artisanal gold mining, locally known as "galamsey", has been credited with contributing to the development of local economies.[82]
In 2023, Ghana's mining sector continued to be a significant contributor to the nation's economy. The sector's mineral revenue increased by 4.3%, rising from US$5.6 billion in 2022 to US$5.8 billion in 2023. Gold remains the leading export commodity from Ghana, contributing the highest percentage of the country's total export earnings.[83]
As of October 2024, gold exports alone accounted for $9.58 billion, representing more than half of Ghana's total export earnings of $16.5 billion.[84] The mining sector also emerged as the largest source of domestic tax revenue in 2023, contributing a record GH₵11.55 billion (US$980 million) in taxes.[85]
Environmental impact
Mining activities in Ghana, particularly gold extraction, have raised environmental concerns. The processes involved, including land clearing, excavation, and waste disposal, have led to habitat destruction, soil erosion, and water pollution.[86][87] Illegal small-scale mining, known locally as "galamsey," has exacerbated these issues. The unregulated use of hazardous chemicals like mercury and cyanide in galamsey operations has resulted in the contamination of water bodies.[88][89][90]
Deforestation is another critical concern, as mining activities have led to the clearing of vast forested areas, disrupting ecosystems and contributing to biodiversity loss. The Atewa Range Forest Reserve has faced threats from bauxite mining, sparking environmental protests and legal actions.[91][92]
Accidents
In 2023, the mining industry recorded seven fatalities, an increase from just one in 2022, marking a 600% surge in mining-related deaths.[93] In addition to fatalities, there has been an uptick in other reportable injuries. The number of first aid injuries increased from 156 in 2022 to 162 in 2023. However, the frequency of near-miss incidents declined by 21.8%, from 325 in 2022 to 254 in 2023.[94] [95][96]
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