Women In Mining - Ghana

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Towards Sustainable Economic Development in the Gold Mining Areas of Johannesburg, Tarkwa and Obuasi

Presenter: Adwoa Pokuaa Boaduo Pr Eng.

Ghana Mining and Energy Conference 31st May 2017

Content

• Introduction - Ghana CoM frequently asked question

• Comparative analysis– Natural Factors / Resource Capabilities

– Mining Investment

– Political Economy

– Economic and Social issues

– Research and development

• Conclusion

• WiM Ghana future R&D projects

• Acknowledgements

Frequently Asked Question

“Why is Tarkwa or Obuasi not developed like Johannesburg, also a mining city.”

Ghana Chamber of Mines Frequently Asked Questions

(August 2014)

Comparative AnalysisResource Capabilities

Johannesburg Obuasi Tarkwa Start of modern gold mining

1886 1874 1874

Geological Formation

Witwatersrand –Formation mainly underground

Ashanti Gold Belt –Formation mainly surface

Ashanti Gold Belt –Formation mainly surface

Grades of Geological formation

Average –6.04g/t. Highest – 28g/t (Tau Tona deposit)

Average –1.94 g/t Highest – 5.35g/t (Obuasi deposit)

Average –1.94 g/t Highest – 5.35g/t (Obuasi deposit)

Comparative AnalysisInvestment

Johannesburg Obuasi TarkwaMining tenure area

Less than 150 km sq. contained 30 active large scale underground mine –Owned by five mining companies

474 km sq.- one large scale underground mine, one open pit – Owned by one mining company

555 km sq. – Three large scale surface mines- Owned by two mining companies

Year area began to effectively benefit from mineral wealth

1900 (117 years) 1990 (27 years) 1990 (27 years)

Mining capital investment per km2 of tenure

Tenure area –USD 12 million / km sq.

Tenure area –USD 1,3 million /km sq.

Tenure area –USD 5 million /km sq.

Local or foreign investment

Largely Local Largely foreign Largely foreign

Comparative AnalysisPolitical Economy

Johannesburg Obuasi TarkwaAdministrative system

De-centralized Strong local administrative body

Centralized Weak local administrative body

Centralized Weak local administrative body

Local Economic Development

Very Strong Weak Very Weak

Distribution of mineral revenue

Mineral revenue used efficiently to grow local economy since 1900

Mineral revenue directed towards capital and other principal cities. Revenues and resources spread thin across the nation, insufficient resources reach host communities

Mining royalties 1866 1962 1962

State Participation

Went beyond collection of taxes and royalties. It encompassed land proclamation.

Mainly focused on taxes and royalties

Mainly focused on taxes and royalties

Comparative AnalysisEconomics and Social

Johannesburg Obuasi TarkwaValue adding Very Strong –ore refined

15 km outside Johannesburg Very weak – Ore refined outside the country.

Economic linkages to mining industry

Very Strong Weak Very weak

Procurement Mainly Local Mostly national and foreign, less local

Mostly national and foreign, less local

Employment Very high Very low Very low

Community disruption

Very low High Very high

Illegal small scale mining

Low Very high Very high

• In the past, South Africa was a leader in mining R&D

– Cyanide process and the inclusion of tube mills in ore treatment, which enabled the grinding of fine ore.

– The improvement of rock drilling and blasting technology

• Weak R&D in the Ghana mining industry

Comparative AnalysisResearch and development

Conclusion

Mineral Wealth

Natural

Investment

Political Economy

Economic and Social Factors

Research and Development

WiM Ghana Future

Research Projects • WiM Ghana Research and Projects team

– Value adding in the Ghana mining industry (focus on gold)

– Best practices for safe, environmentally friendly, economic small scale mining methods.

Acknowledgements

• Professor Frederick Cawood (University of the Witwatersrand)

• Dr Tony Aubynn (Ghana Minerals Commission)

• Mrs Georgette Barnes Sakki-Addo (WiMGhana)

Women In Mining - Ghana

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