Ghana Set to Commission First Large-Scale Gold Mine in Over a Decade Amid Mining Sector Revival

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Ghana, Africa’s leading gold producer, is preparing to launch its first large-scale greenfield gold mine in over a decade, signaling a revival in the country’s mining sector. The Cardinal Namdini mine, owned by Cardinal Resources, a subsidiary of Shandong Gold, is slated to begin operations in November 2024. With an estimated annual production of over 350,000 ounces of gold, the mine marks a significant development in Ghana’s mining landscape, which has seen little exploration over the past decade.

The CEO of Ghana’s Minerals Commission, Martin Ayisi, confirmed the upcoming project in an interview with Reuters. According to Ayisi, the Cardinal Namdini mine is expected to yield an average of 358,000 ounces of gold annually. This project, the first of its kind since 2013, will significantly boost the country’s gold output, contributing to both economic growth and job creation.

Ghana, which is also the world’s second-largest cocoa producer, has experienced a significant decline in gold exploration over the past ten years. This slowdown has limited new projects and reduced output from major mining companies. The last time Ghana commissioned a large-scale greenfield gold mine was in 2013, when Newmont launched its Akyem site in southeastern Ghana.

“Exploration took a nosedive after the Akyem mine was opened, but we are now entering a new phase of development,” Ayisi noted. “We will now see a wave of new mine commissions, starting with Cardinal Namdini.”

In addition to Cardinal Namdini, Ghana’s mining sector is set to benefit from three other new mining projects, including a major lithium mine. These projects are scheduled to commence operations by 2026, further boosting the country’s minerals production. One of the most anticipated projects is Newmont’s Ahafo North mine, which is expected to be commissioned in mid-2025. Together, the Cardinal Namdini and Ahafo North mines will contribute an additional 600,000 ounces of gold to Ghana’s annual output, solidifying the country’s position as a key player in the global gold market.

Ayisi emphasized that these new projects will play a crucial role in helping Ghana recover from its worst economic crisis in decades. The increased mining activity is expected to create hundreds of jobs and stimulate economic growth, particularly in rural areas.

In addition to the two “monster” gold mines, Ghana’s mining future looks promising with two more projects expected to come online by 2026. One is a new gold mine being developed by Azumah Resources in northwestern Ghana, near the border with Burkina Faso. The second is the country’s first-ever lithium project, owned by Atlantic Lithium. With the growing demand for lithium in electric vehicle batteries and other technologies, the project is expected to be a game-changer for Ghana’s mining sector.

Ghana’s strong mining potential has attracted attention from global investors, but some challenges remain. While miners praise the country’s stable fiscal regime, they also cite high operational costs and bureaucratic red tape as barriers to further investment. Ayisi acknowledged these concerns, stating that the Minerals Commission is working closely with the government to reduce exploration taxes and streamline regulations to make Ghana a more attractive destination for mining investments.

“Ivory Coast currently leads in exploration spend because they have made the process easier for investors. Ghana ranks fourth, but we have the potential to move up and become the top destination for mining exploration,” Ayisi said.

Ghana’s gold production has remained robust, despite the recent challenges in exploration. By July 2024, the country had already produced 2.5 million ounces of gold, with 42% of that output coming from small-scale and artisanal miners. This increase in production has been driven in part by rising global gold prices, which have encouraged more miners to enter the market.

In 2023, Ghana produced 4.03 million ounces of gold, with much of the output coming from small-scale operations. The launch of new large-scale mines, combined with sustained production from artisanal miners, is expected to keep Ghana’s gold production on an upward trajectory in the coming years.

The upcoming launch of the Cardinal Namdini mine and the development of other large-scale mining projects mark a new chapter for Ghana’s mining sector. After years of limited exploration and declining output from major miners, the country is once again poised to take a leading role in the global mining industry.

With new investments in gold and lithium mining, Ghana is not only set to increase its minerals output but also diversify its mining sector. This expansion will help the country recover from economic challenges, create new jobs, and strengthen its position as one of the world’s top gold producers.

As the global demand for gold and lithium continues to grow, Ghana’s mining sector is well-positioned for long-term success. The government’s efforts to reduce regulatory barriers and attract more investment will be key to ensuring that the country’s mining industry remains competitive in the years to come.