Ghana

According to GFMS, Ghana ranks tenth in world gold output with production of 72 tonnes (2.3 million oz) in 2001. Ghana’s production has more than doubled in the last decade, although output has been declining for the past two years. The country is nevertheless living up to its long-standing reputation as the Gold Coast of Africa.

West Africa has been a key source of gold for two thousand years. Initially, the gold reached the Mediterranean by camel caravan across the Sahara desert. By 1460 Portuguese navigators were shipping African gold back to Europe directly, and later English and Dutch ships brought the gold to London and Amsterdam. Ashanti goldsmiths in Ghana were famed for their distinctive ornaments by the 1500s.

Geologically, Ghana is auspicious, with large areas overlaid with a Pre-Cambrian greenstone, known as Birimian, which hosts vein, lode, conglomerate and placer deposits.

The development of these deposits by modern mining from the late 19th century made Ghana a serious producer. By 1961, when it gained independence from Britain, Ghana ranked fourth in world output at 34 tonnes (1.1 million oz) annually. But production by Ashanti Goldfields subsequently declined due to lack of foreign exchange to replace equipment. By 1985 output was 12 tonnes (0.38 million oz).

In 1986 a new mining code was introduced, and a new president, Jerry Rawlings, set out an economic recovery programme which won World Bank support.

Ashanti won long-term financing from the International Finance Corporation and during the 1990s not only lifted production at home, but became a real gold mining force elsewhere in Africa, including Guinea, Tanzania and Zimbabwe. In Ghana it operates four mines which produced 31 tonnes (1 million oz) in 2001. Its main complex of open pits and underground mines at the Obuasi goldfield yielded 16.4 tonnes (0.53 million oz) last year, substantially less than in 2000, due to the cessation of surface mining operations. Ashanti hit serious financial difficulties in October 1999 when a sudden dramatic surge in the gold price resulted in margin calls being made on its large hedge book. Hedge positions have subsequently been completely restructured.

Political stability has encouraged significant investment from foreign companies. These days, the largest foreign operator in the country is Gold Fields Ltd from South Africa through its 71.9% interest in Gold Fields Ghana, which operates the Tarkwa, Teberebie and Damang mines. Together, these mines are expected to produce close to 25 tonnes (0.8 million oz) of gold per year.