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MINING | WEST AFRICA REPORT
West Africa mining sector continues to pull in investment
est Africa has long been one of the continent’s mining hot spots and remains an important source of gold, iron ore, bauxite, uranium and diamonds. That means it has attracted huge foreign investment over many years – and it continues to do so, presenting with it opportunity for leading equipment suppliers, contractors and consultants. Strong commodity prices have been good to the sector, which has helped to fuel more investment in recent times, though the economic headwinds ahead are considerable. That’s a point noted by Rio Tinto in a July investor update, which stated that the waning global outlook and threat of recession had dampened prices for some of its key exports, including copper, iron ore and aluminium. Though it is not active in West Africa, other mining companies, large and small, are facing up to the same economic realities. One of the largest is AngloGold Ashanti, which
W
Image Credit: AngloGold Ashanti
Strong demand for gold, lithium and a host of other commodities means interest in West Africa’s mining sector and its potential has never been greater.
Ghana’s famous Obuasi gold mine.
is active in Ghana, Guinea and the Democratic Republic of Congo (DRC), among other territories. What’s apparent is that investments are still rolling in even in the face of economic uncertainty – especially in commodities such as gold, long seen as a safe haven during times of crisis. At its established Obuasi gold mine in Ghana, the company is in the midst of stepping up production via a phased development programme. It announced in its 2021 full-year results recently that construction on phase two had now been completed, with a third phase currently underway.This will boost the mine’s annual gold production to around 340,000 oz by the fourth quarter of 2022.
Gold investment surge Elsewhere in Ghana, junior miner Asante Gold recently announced the first gold pour from its Bibiani mine, which it acquired in 2021. Its plans for the mine include refurbishment and upgrade of the process plant, tailings storage facility and general site infrastructure. Bibiani is a historically significant Ghanaian gold mine
Image Credit: AngloGold Ashanti
Workers at the Obuasi gold mine in Ghana.
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AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | AUGUST 2022
situated in the Western North region of the country. The project team featured a roster of local companies too, including Harlequin International, Rabotec, KPS, Kozah Construction, iConstruction, Emak, Electrowind, FLSmidth Ghana, Caesar Furnace, Mining Project Processing and Engineering Ltd, Top Quality Investments Ltd, Rand Sandblasting Company, Tesla Electricals, Multigeomatics, Knight Piesold Ghana Ltd, Bosch Rexroth (Ghana) and PW International (Gh) Ltd. Canada-based Asante Gold is also now listed on the Ghana Stock Exchange, in a further commitment to the country. Away from Ghana, another Canadian company, IAMGOLD Corporation, recently updated investors on drilling work at its Karita gold mine in Guinea. Further work is planned in the latter half of this year with approximately 4,000 to 6,000 metres of additional drilling, as part of a 2022 delineation drilling programme. The results of this work will be used to develop a deposit model to support the completion of an initial mineral resource estimate planned for 2023. The Karita exploration permit covers 100 sq km in Guinea, along the borders with Senegal and Mali. It is not far from the well-known Fekola Mine in southwest Mali, on the border with Senegal, about 500 km west of Bamako. Here, operator B2Gold is currently mid-way through a 225,000 metre drill programme across western Mali – with a 2022 exploration budget of US$35mn – covering the Fekola North deposit to further test its underground potential, and the Anaconda area. If there is any economic uncertainty, it’s certainly not yet apparent in West Africa’s gold sector. Barrick Gold Corporation, another major producer in the region, said its own production is expected to increase through the year, amid a strong Q2 performance.
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