GHANA MINERALS SECTOR OVERVIEW

Ghana lies between latitude 4° and 11° north of the equator, on the West Coast of Africa. It has an area of 238,535 square kilometres - about the same size as the British Isles or the State of Oregon in the United States of America.

The country’s mineral endowment potential is well known internationally and documented (Keatley, 1992; Strongman, 1994). But for four decades, up to the 1980s, no new mine was opened in Ghana due to a myriad of problems faced by mining sector investors and potential investors alike as a result of the economic, financial, institutional and legal framework within which the sector operated. However since the inception of the ERP the Mining Industry has seen phenomenal growth.

Government’s main objective for the mining sector at the commencement of the ERP was to quickly attract investments into the sector to help turn around the general economy of the country. There is no doubt that significant success has been achieved in attracting investments. Some US$4 billion of private investment capital was injected into the mining sector for mineral exploration, and for the establishment of new mines as well as in the expansion and rehabilitation of already existing mines, over the period 1983 - 1998.

By the end of 1998, 237 companies (154 Ghanaian and 83 foreign) are prospecting for gold while 23 have been granted mining leases. Again, compared to the 7 mines that where in existence in 1986, there are presently 14 in operation. Production trends have therefore concomitantly reflected this improvement.

FORMS OF MINERAL RIGHTS

Under Law 153 mineral rights can be granted in the following areas:

• Reconnaissance licence
• Prospecting licence
• Mining lease

• Restricted Reconnaissance licence
• Restricted Prospecting licence
• Restricted Mining lease