Market Research Logo

Ghana Mining Report Q2 2016

Ghana Mining Report Q2 2016

BMI View: Ghana's mining sector will remain heavily reliant on gold production and, as such, will facesevere headwinds over the next few years as prices of the commodity come under increasing pressureglobally.

Latest Developments & Structural Trends

Ghana's mining sector growth will be affected by a lack of diversity, as the country's gold sector accountsfor about 90.0% of total mineral exports. An ongoing decline in global prices will therefore pose a majorthreat to the growth of Ghana's mining sector going forwards, with prices forecast to average USD1,045/USD during 2016-20120. Falling prices will put increased pressure on the profit margins of the country'sgold miners, with many firms, including market leader Newmont Mining, moving to cut expenditure inthe face of falling revenues. Despite gold price weakness, the country's mining sector will remain animportant component of Ghana's economy through the next few years.

Gold mining firm Rangold Resources has ended a contract for redeveloping AngloGold Ashanti'sObuasi gold mine in Ghana. The move follows efforts by both the companies to improve the project'sreturns. The companies had announced a deal in September 2015 to form a joint venture to redevelop andoperate the mine. Randgold had agreed to lead and fund a development plan designed to rebuild theoperation. As such, we revised our gold production forecast for Ghana down from -1.6% to -2.5% and0.5% to -1.0% for 2016 and 2017, respectively.


BMI Industry View
Table: Ghana Mining Industry Value
Latest Developments & Structural Trends
SWOT
Industry Forecast
Ghana Gold: Price Weakness To Subdue Growth
Latest Developments
Table: Ghana
Gold Production & Growth
Structural Trends
Government Shows No Sign of Easing Taxes
Industry Risk Reward Ratings
Ghana Risk/Reward Index
Rewards
Industry Rewards
Country Rewards
Risks
Industry Risks
Country Risks
Regional Overview
Table: SSA
Government Involvement In Mining Sector
Regulatory Development
Trade & Investment Risk Analysis
Commodities Forecast
Commodities Outlook
Table: BMI Commodities Price Forecasts
Competitive Landscape
Table: Africa
Financial Data, 2014
Company Profile
Newmont Mining
Table: Newmont Mining
Key Financial Data
Global Company Strategy AngloGold Ashanti Q2 2016
Overview
Strategy
Risks
Latest Results
Table: AngloGold Ashanti
Key Financial Data
Regional Overview
Africa: Major Risks Remain
Key Takeaways
Latest Revisions
Table: Africa
Mining Risk/Reward Index
Methodology
Industry Forecast Methodology
Sources
Risk/Reward Index Methodology
Table: Weighting Of Indicators

Download our eBook: How to Succeed Using Market Research

Learn how to effectively navigate the market research process to help guide your organization on the journey to success.

Download eBook

Share this report