Ghana, one of Africa’s most resource-endowed nations, is striving to increase its involvement in the value-added processing of its ores, a strategy commonly referred to as ‘beneficiation.’
With a population of 33.7 million and an economy valued at $75.6 billion, Ghana possesses abundant natural resources, including gold, silver, diamonds, manganese, and bauxite, extracted from deep underground or offshore sources. Moreover, the country harbors reserves of iron ore, limestone, columbite-tantalite, feldspar, quartz, and salt, alongside smaller quantities of ilmenite, magnetite, and rutile.
In recent years, Ghana has broadened its resource base with the discovery of commercial lithium deposits in 2018, fostering partnerships with international entities for extraction and processing. Additionally, significant oil and gas reserves along the coastline contribute to the nation’s economic prospects, with gold remaining the primary revenue driver, accounting for approximately 95% of mineral earnings.
The mining sector plays a pivotal role in Ghana’s economy, attracting substantial foreign direct investment, generating considerable export revenues, and contributing significantly to GDP. However, the government aims to move beyond mere extraction by prioritizing beneficiation efforts to enhance the value of raw materials, exemplified by initiatives for an integrated iron and steel value chain.
Despite hosting numerous mines, small-scale mining operations, and supporting service enterprises, employment figures in the sector are underestimated. Vice President Mahamudu Bawumia advocates for responsible mining practices and the transition of small-scale operations into larger, more sustainable ventures.
Ghana’s mining sector witnessed a resurgence in 2022 following a downturn induced by the COVID-19 pandemic, particularly in the minerals sub-sector, with gold leading the recovery. The government anticipates further expansion through the construction of new mines and expansion projects, forecasting a significant rise in gold output.
To harness its mineral wealth effectively, Ghana is pursuing various processing initiatives, including the establishment of a gold refinery and collaboration with foreign firms for manganese refining. Plans for an integrated aluminum industry and domestic steel production from iron ore underscore the nation’s commitment to value addition.
However, challenges persist, notably illegal mining activities that disrupt forest reserves and pose environmental threats. While efforts to combat illegal mining are ongoing, regulatory changes aimed at increasing local participation in the mining industry may deter potential investors.
Despite these obstacles, Ghana remains optimistic about its mineral-rich future, emphasizing the importance of beneficiation to diversify its economy away from traditional exports such as cocoa, gold, and oil.
