Republic of Ghana Mining Roundtable Hosted by Hon Alhaji Inusah Fuseini MP, Minister of Land and Natural Resources Mining On Top: Africa - London Summit 24-26 June 2014 | London

1. MINING ON TOP: AFRICA LONDON SUMMIT
24-26 JUNE, 2014
GHANA MINING ROUNDGHANA MINING ROUND
TABLETABLE
HOSTED BYHOSTED BY
HON. ALHAJI INUSAH FUSENI, MPHON. ALHAJI INUSAH FUSENI, MP
(MINISTER OF LANDS & NATURAL RESOURCES, GHANA(MINISTER OF LANDS & NATURAL RESOURCES, GHANA))

2. PRESENTATION OUTLINEPRESENTATION OUTLINE
INTRODUCTIONINTRODUCTION
GHANA’S ECONOMYGHANA’S ECONOMY
MINING SECTOR OVERVIEWMINING SECTOR OVERVIEW
THE MINING ENVIRONMENTTHE MINING ENVIRONMENT
INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES
CONCLUSIONCONCLUSION

3. • Ghana is a significant gold producer in Africa
(second after South Africa) and globally, being
the 9th
largest producer in the world.
• In 2013, Ghana produced about 4.3 million
ounces of gold (134MT), only a marginal decline
from the 2012 highest ever production in the
history of the country,
INTRODUCTIONINTRODUCTION

4. GHANA’S ECONOMYGHANA’S ECONOMY
• Estimates for 2013 showed real GDP growth rate of 7.4%.
The Services Sector, recorded the highest growth of 9.2%,
followed by Industry at 9.1%;
• The Services sector remains the largest with a share of 50.6
percent of GDP, followed by Industry at 28.1% and
Agriculture 21.3%.
• In terms of growth, the Petroleum and Mining sub sectors
recorded 37.5% and 17.6% respectively, Construction and
Electricity subsectors recorded 13.3% and 8.4% respectively
in the Industry Sector, while, Manufacturing grew by 2.5 %,
and Water by 2.4 %.

6. 6
MAJOR EXPLORATION AND MINING COMPANIESMAJOR EXPLORATION AND MINING COMPANIES
OPERATING IN GHANAOPERATING IN GHANA
SECTOR PERFORMANCE – Key Facts (1)SECTOR PERFORMANCE – Key Facts (1)

7. • Some US$ 13.7 billion invested in mining sector
(1983-2012)
• As of December 2013, 235 Local and Foreign
companies held Prospecting/Reconnaissance
licenses.
– Locals (Ghanaian Controlled): 184 (78.3%)184 (78.3%)
– Foreign Controlled: 51 (21.7%)(21.7%)
• Many of the companies holding exploration licences
focused on gold exploration.
• Thirteen (13) Large Scale Mines were in production.
SECTOR PERFORMANCE – Key Facts (2)SECTOR PERFORMANCE – Key Facts (2)

8. SECTOR PERFORMANCE – INVESTMENT INFLOWS (3)SECTOR PERFORMANCE – INVESTMENT INFLOWS (3)

9. SECTOR PERFORMANCE – Key Facts (4)SECTOR PERFORMANCE – Key Facts (4)

10. CONTRIBUTION TO TOTAL MERCHANDISE EXPORTS BY KEY SECTORSCONTRIBUTION TO TOTAL MERCHANDISE EXPORTS BY KEY SECTORS
SECTOR PERFORMANCE – Key Facts (5)SECTOR PERFORMANCE – Key Facts (5)

11. • The significant investment over the years and
consequently mineral outputs led to an increased
sector contribution to the economy of:
 27% of Government revenue as collected by the
Domestic Tax Division of GRA in 2012. 19% in 201319% in 2013
(fall due to decline in gold price)(fall due to decline in gold price)
• Average 40%% of total merchandise export earningsmerchandise export earnings
over last 10 yrsover last 10 yrs.
 Employed 28,000 for large scale and estimated over
1 million people for small scale mining.
SECTOR PERFORMANCE – Key Facts (6)SECTOR PERFORMANCE – Key Facts (6)

12. The Achievements are mainly attributed to:
• Political Stability: Ghana can boast of some 22 years of
multi-party democracy which has been lauded
internationally;
• Availability of geo-scientific data: For the first time,
total coverage of airborne data (magnetic and
radiometrics) is now available in the country. Indeed
some areas have also been covered with gravity and
Electromagnetic data. The geological map covering the
whole country has also been updated;
THE MINING ENVIRONMENT (1)THE MINING ENVIRONMENT (1)

13. The Achievements are mainly attributed to:
• Favourable Fiscal Regime: Ghana operates an attractive
legal and fiscal regime in line with international best
practices; and
• Governance Improvement: Government has created a
stable regulatory environment that provides for
transparent and even-handed treatment of all
investors.
THE MINING ENVIRONMENT (2)THE MINING ENVIRONMENT (2)

15. Prospects for Gold & Value AdditionProspects for Gold & Value Addition
 Gold
 In addition to the 11 operating gold mines in the
country, 265 gold reconnaissance and prospecting
licences had been issued by Government to both
Ghanaian and foreign entrepreneurs.
 Some of these companies have advanced in their
exploration and there are opportunities for investors to
enter into Joint Venture (JV) arrangements with these
companies to develop the resources.
 Gold Refinery and Value Added Products
 Ghana produces over 4.3 million ounces of gold per
annum. Setting up a refinery could serve other gold
producers in the sub region.

16. Bauxite and Iron Ore DepositsBauxite and Iron Ore Deposits
 Integrated Bauxite-Alumina Industry
526 million tonnes with about 160 million tonnes of
contained aluminium.
Deposits: Kibi, Nyinahin
 Iron and Steel Development
Opon-Mansi lateritic iron deposit;
Shieni sedimentary iron deposit; and
Pudo titaniferous-magnetite deposit

17. Solar Salt & Chlor-Alkali IndustrySolar Salt & Chlor-Alkali Industry
Solar Salt
 Along its 500km coastline, Ghana possesses one of the
largest proven renewable solar salt production potential in
West Africa, which could supply the needs of the entire
sub-region. After investigations, Salt Landbanks will be
made available to investors.
Chlor— Alkali Industry
 Potential exist for the utilisation of part of the salt to
produce caustic soda which is a raw material for the soap
and detergent industry; and bauxite/alumina production.
The chlorine co-product can also be used as water
treatment chemical and also serve as raw materials for
the production of various health and sanitation chemicals.

18. Industrial MineralsIndustrial Minerals
Industrial Minerals
Ghana is also endowed with industrial mineral deposits
such as: feldspar, kaolin, silica sand and granite.
Government policy is to diversify the mineral resources
base from the traditional minerals and it is expected that
the exploitation of industrial minerals would promote
effective linkages with other sectors of the economy, to
reduce current over reliance on imported substitutes.

19. Service and Engineering SectorService and Engineering Sector
• There are several service companies in Ghana, providing
support services including: contract drilling, assay
laboratories, contract mining and geological consultancies to
mining companies.
• Using Ghana as a base, these companies have ventured
and expanded their activities into the West African sub-
region. Government has through incentives encouraged such
companies.
• Investment opportunities exist for investors to set up plants
for producing inputs and machinery for the mining industry.

20. OTHERS:
–Decorative & Semi-Precious Stones
–Base Metals & Other Mineral Potential
–Infrastructure Development
–Linkage & Multiplier Opportunities
INVESTMENT OPPORTUNITIESINVESTMENT OPPORTUNITIES

21. • Availability of database to assist investors looking for open
grounds i.e. Geographic Information System (GIS) based
mineral title cadastre.
• Searches for open grounds are conducted electronically and
timeously (maximum 10 minutes)
• Priority to mineral applications that are first in time i.e., on first
come, first considered basis
• A Block cadastral system has been introduced to improve and
streamline procedures for acquisition of mineral rights, prevent
conflicts and will shorten the time used in the processing of
mineral right applications
IMPROVED SYSTEMSIMPROVED SYSTEMS

22. • Available currently are up to date mineral related
information in the form of publications, concession
maps, spatial geophysical and geological data (airborne
geophysical coverage maps, geological maps showing
various units and belts, etc.), which serves as ready
information to investors.
• A new mining portal (www.ghana-mining.org) has been
created to make information readily available to
investors
IMPROVED SYSTEMSIMPROVED SYSTEMS

23. In conclusion, it is significant to note that:In conclusion, it is significant to note that:
• Ghana, though quite a matured mining economy,
– still has broad-based mineral sector investmentstill has broad-based mineral sector investment
opportunitiesopportunities; and
– has a well structured investment regime which is supportivehas a well structured investment regime which is supportive
of investment,of investment, on a win win basis;
• Ghana therefore welcomes investors to partner
Government to undertake mineral related activities
that would catalyse wider Sustainable Development.
Conclusions

24. GHANA: GREAT NATION,GHANA: GREAT NATION,
HAPPY PEOPLEHAPPY PEOPLE