Ghana to remain Africa's second-largest gold producer

This marks a significant break from the past decade where the mining sector value has barely risen as gold output has declined, offsetting much of the increases in price. We expect gold to be the main driver of growth, but bauxite to play a growing role in the mining sector over the coming years.

Country Overview:

Ghana contains the second-largest area of gold deposits in the African region after South Africa. The nation derives the bulk of its external revenue from gold mining, which accounts for over 90% of Ghana's total mineral exports. Apart from gold, Ghana also produces significant quantities of bauxite, manganese and diamonds, although diamond output has been affected in recent years by the closure of Ghana Consolidated Diamonds in 2007.

Ghana is set to remain Africa's second-largest gold producer after South Africa as investment continues to flow into the mineral rich country. In addition, the country boasts one of the most favourable business environments in the region with a democratic and stable government, which contrasts sharply with many of its resources-rich neighbours.

Ghana's mining sector is set to reach US$1.83bn in 2016, from US$1.21 billion in 2010 as bauxite and gold production see substantial increases. This marks a significant break from the past decade where the mining sector value has barely risen as gold output has declined, offsetting much of the increases in price.

Key Players:

AngloGold Ashanti is a global gold player with operations in 10 countries: Argentina, Australia, Brazil, Ghana, Guinea, Mali, Namibia, South Africa, Tanzania and the US. Its combined proven and probable ore reserves add up to 63.3moz. The company has two operations in Ghana: the Obuasi mine and the Iduapriem mine. Gold Fields is one of the world's largest gold producers with attributable production of 3.6mozpa from eight operating mines in South Africa, Ghana, Australia and Peru. It holds a 71% stake in its subsidiary, Gold Fields (Ghana).

Newmont Mining is the world's largest gold producer, with significant assets and operations in the US, Australia, Peru, Indonesia, Ghana, Canada, New Zealand and Mexico. In Ghana, the company has a land package covering approximately 3,380 square kilometres (km2). It has two development projects in Ghana: Ahafo and Akyem.