Gold mining’s potential in West Africa
Global gold prices are surging, surpassing $2,700/oz this month, already up by more than a fifth compared with 2023.
In this landscape, gold hubs across the world are working to formalise their mining sectors, capitalising on the rising demand and boosting investments, driven, a GlobalData report says, by “growing demand for safe-haven assets”.
A large proportion of production is centred in West Africa, particularly in the ‘Birimian belt’, which includes Ghana, the Ivory Coast, Burkina Faso and the Mali-Senegal border. Rich gold reserves in these West African nations have long attracted investment; however, the sector’s development has been hobbled by ongoing political instability and illegal mining activities – particularly in Burkina Faso and Mali – meaning development is often curtailed before governments can reap the full benefits.
The development of a robust and transparent gold sector could have transformative impacts for West Africa’s socioeconomic landscape. It could also put the region in good stead for expanding to explore other metals. However, greater stability is needed before international investment can be relied on and before illegal mining activities can be expected to die down.
Gold mining in West Africa
GlobalData figures estimate gold production in West Africa reached 11.83 million ounces (moz) in 2024, with Ghana, Burkina Faso and Mali emerging as the main contributors to this figure. These nations have also made the news lately with government action to regain control over supply chains.
For instance, in September, Ghana’s government announced plans to commission its first greenfield gold mine since 2013. The mine, Cardinal Namdini, is due to be commissioned in November 2024 and is expected to produce more than 350,000oz of gold per annum. The country also launched its first commercial gold refinery this year.
Source: https://www.mining-technology.com/