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Ministry of Lands and Natural Resources
Message from the Minister of Lands and National Resources
It gives me great pleasure to, on behalf of Excellency John Agyekum Kufour, President of the Republic of Ghana, the government and the friendly people of Ghana, to welcome you and your treasured investment to the gateway, and the leading producer of gold, in the West Africa sub – region. It is the policy of the government of Ghana to promote the involvement of the private sector, as it is an important part of the engine of growth for the Ghanaian economy. In this regard, the government has been taking positive steps to attract private investors both local and foreign to participate in the economy of the country, by providing favorable conditions for investment. This has been done through the following means:
• Continuous review of the legal and fiscal regimes under which mining operates to ensure international competitiveness and relevance to national developmental goals;
• Provision of the basic geo-scientific data needed to promote mining-sector investment; and
• Creation of a stable regulatory environment that provides for transparent and even-handed treatment of investors etc.
The current mining sector projects in Ghana hold promise for a turn-around in the mining industry, and will make the country a preferred destination for mining investment.
Opportunities abound in the fields of exploration and mining of a variety of minerals, as well as the service and engineering support sector as illustrated in this supplement.
I am happy to state that Ghana has been relatively successful in achieving its objective of attracting investment into the mining sector. In particular, over the past five years interest in the sector has heightened, possibly due to the increase in the gold price, and the advent on the local mining scene of big mining companies like Newmont and AngloGold Ashanti, which are making heavy investments in both exploration and exploitation of gold.
We look forward to your early participation in the development of our enormous natural resources in a win-win situation for all stakeholders in the mining sector.
Ms. Esther Obeng Dappah
Ministry of Lands and National Resources
Ghana
VISION AND MISSION
The Ministry of Lands and National Resources exists to ensure the sustainable management and utilization of the nation's lands, forests, wildlife and efficient management of mineral resources for the country's socio-economic growth and development. This is achieved through:
efficient formulation, implementation, coordination, monitoring and evaluation of policies and programmes of sector agencies;
• efficient and equitable land delivery;
• promotion of sustainable forest, wildlife and mineral resource management and utilization;
• promotion of effective inter-agency and cross-sectoral linkages;
• creation of an enabling environment for effective private sector participation; and
• promotion of effective community participation in multiple use of land, forest wildlife and mineral resources
AIMS AND OBJECTIVES
The Ministry's activities and implementation of the current reforms are in pursuance of its set aims and objectives. These are:
• Develop and manage sustainable lands, forest, wildlife and mineral resources;
• To facilitate equitable access, benefit sharing from and security to land, forest and mineral resources;
• Promote public awareness and local communities participation in sustainable forest, wildlife and land use management and utilization;
• To review, update, harmonise and consolidate existing legislation and policies affecting land, forest and mineral resources;
• To promote and facilitate effective private sector participation in land service delivery, forest, wildlife and mineral resource management and utilization;
• Develop and maintain effective institutional capacity and capability at the national, regional, district and community levels for land, forest, wildlife and mineral service delivery;
• Develop and research into problems of forest, wildlife, mineral resources and land use;
Ministry of Lands and National Resources
INVESTMENT OPPORTUNITIES
Besides investing in exploration and exploitation of minerals, other opportunities exist in the mining and allied industries.
GOLD REFINERY AND VALUE-ADDED PRODUCTS
Ghana is already producing over 2 Moz/y of gold. In spite of this level of production, there is no refinery in the country and the bullion is exported for final
refining. Feasibility studies have confirmed the viability of refining gold in Ghana. Such a facility will serve other gold producing countries within the sub-region. This is a project that investors with the technical know-how might wish to consider.
SOLAR SALT
Ghana possesses one of the largest proven renewable solar salt production potential along the entire coastline, stretching for a distance of over 500 km. Eff ective exploitation would enable the country to supply the needs of the entire sub-region. Government is carrying out a study to identify and demarcate areas that will be suitable for salt winning. Such salt landbanks will be made available for 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.
SERVICE AND ENGINEERING SECTOR
There are several service companies in Ghana who are 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 manufacturing plants and machinery for the mining industry.
SECTOR PERFORMANCE
Since 1986 when the old minerals and mining law PNDC Law 153 was enacted, there has been a generally increasing trend in mineral production. From a figure of 287,124 oz in 1986, gold production increased to 2.14 Moz in 2005. Similarly, there have been signifi cant increases in the production of diamonds, bauxite and manganese over the same period.
The sector was consistently the highest gross foreign exchange earner from 1999 to date excepting 2004 as well as a provider of high quality employment to Ghanaians. Currently, the sector contributes about 7% of Ghana’s total corporate tax earnings, 37% of total exports, 12% of Government revenue and 5% GDP. The sector also employs 20,000 people in the large-scale mining industry whilst over 500,000 people are engaged in the small-scale gold, diamonds, sand winning and quarry industries. In 2005, export revenues from the mineral sector amounted to US$1 billion. Total Foreign Direct Investment (FDI) into the minerals and mining sector from 1980 to 2005 amounted to US$6 billion.
Mineral Production Statistics for 1995 - 2005
News
PHYSICAL INFRASTRUCTURE
A good network of sealed all weather roads connects all the major towns. A rail network links, Accra, Kumasi, Takoradi and Tema. The international airport at Accra supports a frequent service to and from major American, European, Asian and African cities. Within Ghana, there are airports at Kumasi, Tamale, Sunyani and Takoradi. Hydro electric power is generated mainly by the Akosombo and Kpong Dams and supported by thermal generation at Takoradi. All district capitals have access to the national grid. There are rural water supplies and sanitation schemes. The telecommunication industry is growing at a very fast rate, thanks to the advent of mobile telecommunication, which is supported by four networks in the country.
FISCAL REGIME / COMMERCIAL LAW
Ghanaian law is typical of that in former British territories although there have been additions since independence. In an effort to cover the whole industry, some of the provisions of the Minerals and Mining Act 2006, Act 703 relate to commercial aspects and incentives, which elsewhere would be covered by other legislation. Some significant aspects are:
• Expenditure on exploration and development may be capitalised in accordance with regulated amortisation provisions for tax relief;
• Capital allowances have been designed to shorten the pay-back period and include 75% write off of capital in the first year and 50% annually thereafter on a declining balance;
• Retention of a proportion of revenue in foreign currency account for use in acquiring essential equipment and spare parts required for mining operations which would otherwise not be readily available without the use of such earnings;
• Exemptions from import duties on imported plant and equipment.