FOREIGN GOLD MINING INVESTORS

Ghana (formerly called The Gold Coast) has a towering and palmy mining history. For centuries, it is among the foremost states in West Africa to mine gold. Presently, the country produces over three (3) million ounces of gold per year.

80 years and counting, Ghana has seen many foreign companies entering the mining and quarrying industry.

Amongst the gold mining juggernauts are AngloGold Ashanti, Golden Star, Newmont, Gold Fields and Kinross.

Why Ghana?

Availability of immense mineral resources with supporting geo-scientific data, a friendly investment framework, an effective legal and institutional system to fight crime. Enforcing the rule of law to enhance transparency in the management of Ghana’s mineral resources to make Ghana an attractive investment destination.

Investment into the country’s mining and quarrying industries will help make these already lucrative industries more efficient, increase productivity and catapult profits across the board. Successive Governments of Ghana have vowed creating enabling environment to attract more Direct Foreign Investment as top priority.

The Government of Ghana does not discriminate against foreign-owned businesses. Foreign investments enjoy additional incentives on both essential and non-essential projects since they contribute to nation development.

154 Ghanaian and 83 foreign companies have been issued with licenses, mainly to prospect for gold. Some of the major international mining companies operating in the country are Normandy Piesadon, Goldfields Limited, Lasource, as well as several juniors from the United States, Canada and Australia.

Most of these companies have used Ghana as a base to venture into other countries in the sub-region. In a continent where many countries are landlocked, Ghana has good ports that allow shipping directly to the United States and Europe. It is a member of the WTO, benefits from trade preferences accorded by the EU to African, Caribbean and Pacific (ACP) countries and is beneficiary of the African Growth and Opportunity Act (AGOA) of the United States. A liberalized telecommunications sector and many Internet providers are available. It also has one of the few well-functioning stock exchanges in Africa, and provides a wide range of incentives for foreign investors.

Legislature

In the past, the government passed laws to encourage foreign investment and replaced regulations perceived as unfriendly to investors.

These laws with generous provision of tax incentives to foreign investors wield jurisdiction over fiscal issues of the mining sector. The Minerals and Mining Law, PNDCL 153 of 1986 as amended by the Minerals and Mining (Amendment) Act - Act 475 of 1995, is the key legislation governing mining in Ghana. The enactment of the law has had a very positive effect on the development of the industry.

Registering a business is a relatively easy procedure but partnering a local company is the best option. The process involved is quite lengthy and requires compliance with regulations and procedures of at least five different government agencies including GIPC, Registrar General Department, Ghana Revenue Authority (GRA), Ghana Immigration Service, and Social Security and National Insurance Trust (SSNIT).

More information on investing in Ghana can be obtained from GIPC's website, www.gipcghana.com.