September, Africa Dubai Precious Metals Forum, 2015. Accra, Ghana

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PRESENTATION BY PRESENTATION BY DR. TONI AUBYNN, CEO, DR. TONI AUBYNN, CEO,

GHANA MINERALS COMMISSION ON THE GHANA MINERALS COMMISSION ON THE TOPIC: GHANA GOLD MINING SECTOR – TOPIC: GHANA GOLD MINING SECTOR –

OPPORTUNITIES FOR INVESTMENTSOPPORTUNITIES FOR INVESTMENTS

AT THE AFRICA DUBAI PRECIOUS METALS AT THE AFRICA DUBAI PRECIOUS METALS FORUM, HELD AT THE NOVOTEL HOTEL, FORUM, HELD AT THE NOVOTEL HOTEL,

ACCRA, GHANA ACCRA, GHANA

SEPTEMBER 28, 2015SEPTEMBER 28, 2015

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GHANA’S MINERAL ENDOWMENT GHANA’S MINERAL ENDOWMENT

Major minerals currently being mined on commercial scale are GOLD, diamonds, bauxite, manganese. GoldGold accounts for 95% of mineral revenues. 4.3 million ounces of gold produced in 2014.

Other minerals: Iron Ore, Limestone, Kaolin, Mica, Clay Minerals, Columbite-Tantalite, Granite, Solar Salt

Minor Deposits:- Ilmenite, magnetite, rutile

Industrial Minerals exploited on small scale for local industrial uses.

Huge potential for Solar Salt

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TRENDS IN MINERAL PRODUCTIONTRENDS IN MINERAL PRODUCTION

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SOME EXPLORATION AND MINING COMPANIES OPERATING IN GHANA

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A Typical Large Scale Mining Operation in Ghana (Processing

Plant)

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Pix: Courtesy Armand - Goldfields GH. Ltd.

GHANA’S ECONOMYGHANA’S ECONOMY

Despite Current Global Economic Challenges, Ghana recorded4.2 % GDP growth.

Agriculture: -5.2% growth

Industry:-4.1% growth

Services:-3.9% growth

Construction:-7.4%

Growth significantly driven by mining sector

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MINING SECTOR MINING SECTOR ENVIRONMENT ENVIRONMENT

Ghana has the requisite environment that serious investors need. This includes:

Availability of abundant mineral resources with geo-scientific

data which is continuously updated;

Political and macroeconomic stability; Attractive investment framework, Well structured institutions to reduce corruption &

bureaucracy; and Improved mineral cadastre to increase transparency in the

management of our mineral resources.

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MINERALS AND MINING MINERALS AND MINING POLICY POLICY

Minerals and Mining Policy seeks to establish framework for sustainable development: Key Objectives:

Diversification of mineral production base

Optimization of mineral revenue collection

Creation of demand for local goods and services,

Ensuring contribution to infrastructure development

Mining as a catalyst for investment in economy

Implement Country Mining Vision along policies outlined

in the African Mining Vision

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LEGISLATIVE FRAMEWORKLEGISLATIVE FRAMEWORK

Robust, transparent, effective and time-tested legal

framework

Engagement of stakeholders before laws are enacted or

policies developed

Renegotiation of Stability Agreements

To maintain a careful balance between investors and

government,

To ensure win-win and mutual beneficial situation for both

parties

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Government Support for Government Support for Distressed CompaniesDistressed Companies

Government approved Anglo Gold Ashanti’s plan to re-strategize its

mining operations (which led to massive layoffs) the first of its kind

the history of the Obuasi mine

Similarly, Nobel Gold Limited run into some difficulties and

Government again approved a merger situation which enable the

operations to go on under a new company Mensin Mining Company

Government announce release of funds to pay outstanding VAT

refunds,

Expedite action on delayed EPA permits etc. Proposed amendment to Act 703 to criminalize Illegal small

scale mining, Other interventions to reduce illegal small scale mining

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Good Governance Practices EITI KPCS African Mining Vision ECOWAS Directive on Harmonization of Mining

Policies Inter-Governmental Forum (IGF) on Mining, Metals

and Sustainable Development Open Governance Partnership Voluntary Principles on Security & Human Rights

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INTEGRATING MINING TO REST OF INTEGRATING MINING TO REST OF ECONOMYECONOMY

Local Content Regulations passed to integrate mining to

rest of economy

Manufacturing of Inputs and Services for the Mining

industry

Value Addition, production of jewellery, adding value to

Bauxite and Manganese

Diversification of Minerals ProducedTo ensure that economy does not suffer in times of weak

gold prices, Explore occurrence of Mn, Co, Zn, Cu, Ni, U, Cr.

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DEEPENING TRANSPARENCY AND DEEPENING TRANSPARENCY AND IMPROVING THE COST OF DOING IMPROVING THE COST OF DOING

BUSINESSBUSINESSMineral Concession Cadastre being developed with

support from Australian Government.

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ROAD INFRASTRUCTUREROAD INFRASTRUCTURESeptember, Africa Dubai Precious Metals Forum, 2015. Accra, Ghana 16

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AVAILABILITY OF OFFICE SPACEAVAILABILITY OF OFFICE SPACE

PORT EXPANSION AND CARGO HANDLING PORT EXPANSION AND CARGO HANDLING EQUIPMENT: SHIP-TO-SHORE GANTRY CRANESEQUIPMENT: SHIP-TO-SHORE GANTRY CRANES

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POWER GENERATION & TRANSMISSION

.

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Bui Hydro Electric DamBui Hydro Electric Dam

Reliable Transmission of Reliable Transmission of PowerPower

POWER GENERATION.

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Gas Processing Gas Processing Plant Plant

Akosombo Hydro-Electric Akosombo Hydro-Electric Dam Dam

OPPORTUNITIES IN THE MINING OPPORTUNITIES IN THE MINING SECTORSECTOR

Cleaning Up of the Concessions Map

Value Addition to Bauxite and Manganese

Iron Ore Deposits

Solar Salt

Chlor-Alkali Industry

Industrial MineralsService and Engineering SectorActivated Carbon ProdutionDecorative Stones.

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INVESTMENT OPPORTUNITIES

Gold Refinery and Value Added ProductsGhana produces over 4.3 million ounces of gold per

annum. Setting up a refinery could serve other gold producers in the sub region

Integrated Bauxite-Alumina Industry526 million tonnes with about 160 million tonnes of

contained aluminium.: Deposits: Awaso, Kibi, Nyinahin and Mt. Ejuanema.

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OTHER INVESTMENT OPPORTUNITIES

Small-Scale Mining (SSM)Processing: Introduce recovery methods which do not require use

of mercury; Training: Provide training on safe mining, processing and basic

book keeping to ssm’s Equipment: Supply of appropriate mining equipmentGeological Investigation: Assist to conduct geological

investigations to determine suitable areas for ssmFinance: Arrange with appropriate financial institutions to make

funds available to ssm’sMarket: Facilitate marketing of products from ssm

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OTHER INVESTMENT OPPORTUNITIES

Industrial Minerals: Potential for domestic use

Service and Engineering Sector There are several companies in Ghana 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.

Activated Carbon Coconut Husk raw material is readily available

Decorative Stone:- High quality Granites as floor tiles.

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MINE SUPPORT SERVICES

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MINE SUPPORT SERVICES

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Good Governance Practices EITI KPCS African Mining Vision ECOWAS Directive on Harmonization of Mining

Policies Inter-Governmental Forum (IGF) on Mining, Metals

and Sustainable Development Open Governance Partnership Voluntary Principles on Security & Human Rights

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CONCLUSION Available Geological Information Good Governance Institutions Good Infrastructure Most Stable Politically A Commonwealth Nation Common Law Legal System Hospitable People

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GHANA: GREAT NATION, GHANA: GREAT NATION, HOME OF BLACK STARSHOME OF BLACK STARS

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