South Africa’s struggling gold industry has suffered yet another humiliation, losing its status as continental leader to Ghana.
The country that led global gold production for a century and extracted about half the bullion mined to date is now Africa’s second-largest gold producer. Output is shrinking as operators capitulate to stubbornly high costs, regular strikes and the geological challenges of tapping the world’s deepest mines.
Meanwhile Ghana, a country whose gold-mining industry dates back to the 19th century, is benefiting from lower-cost mines, friendlier policies and new development projects.
South African industry stalwarts AngloGold Ashanti Ltd. and Gold Fields Ltd. are shifting their focus to other countries — including Ghana — where deposits are cheaper and easier to mine. The largest remaining gold miner in South Africa, Sibanye Gold Ltd., is cutting thousands of jobs and diversifying into platinum-group metals as it struggles to contain costs.
The difficulties facing South African gold mines mean output is contracting even though it’s got the world’s second-largest reserves of the metal, according to estimates from the U.S. Geological Survey.
In Ghana, gold output jumped 12% in 2018, according to data from the country’s Chamber of Mines. Small producers account for the largest share of the total, although the nation also hosts some of the world’s biggest gold miners, including No. 1 producer Newmont Goldcorp Corp. While Newmont is exploring in Ethiopia, Ghana is the only place in Africa where it operates.
“It’s an important part of our portfolio and, geologically we see really good potential to continue to expand,” Chief Executive Officer Gary Goldberg said in an interview. “We’re very happy operating in Ghana.”
The West African nation’s output will get a further boost when AngloGold Ashanti’s Obuasi operation, previously overrun by illegal miners, restarts later this year. Production from Obuasi is forecast at 350,000 to 450,000 ounces of gold annually during the first 10 years.
The Obuasi operation “will be an engine for growth” for AngloGold, CEO Kelvin Dushnisky said in September. The company is investing as much as $500 million to revive the mine.
Gold Fields, which has operated in Ghana for 26 years, says authorities there understand what makes for a “sound” business environment. The country cut corporate taxes in 2016 and in 2017 changed Gold Fields’ mineral royalty to a sliding scale based on the gold price, from a 5% flat rate.
“The government of Ghana’s 10% free-carry stake in all mining companies provides a level of security to the investment,” said Sven Lunsche, spokesman for Gold Fields.
Back in South Africa, a dearth of exploration and investment means the sector that once powered Africa’s most-industrialized economy will continue to shrink, said Mineral Resources and Energy Minister Gwede Mantashe. As South Africa’s 130-year-old industry limps toward its final years, mining investors must look beyond gold for better returns, he said.
“Gold is an old sector and naturally it will decline,” Mantashe said. “New minerals that are discovered are becoming more important.”
Rigworld Limited Opens Ultramodern Manufacturing Center In Takoradi.
Rigworld Limited has opened an ultramodern manufacturing center in Takoradi, to produce high quality stud bolts and nuts, as well as high and low pressure hydraulic hoses for the industries in the oil and gas, and mining sectors among others.
The facility christened Rigworld Solutions, is borne out of a collaboration between Rigworld and its UK partners, Steadfast and Hydrasun.
Rigworld Solutions offers an excellent alternative for oil and gas, and mining companies to source high quality and affordable stud bolts and nuts, and hydraulic hoses to support their routine repair and installations of factory or site machinery and equipment.
Factory Manager of Rigworld Solutions, Nicholas Amenyor, during an inspection tour at the facility, told journalists that their products are of international specifications and quality standards.
He stressed that the factory employs production and quality requirements of their UK partners, Steadfast and Hydrasun, to their operations to ensure the best value for their clients.
“We have contracted them to supply us with the raw material. Since we are partnering with them to use their brand, we also make sure that the right quality of product that they use for production in UK is sent to us here in Ghana to enable us match the same quality standards,” he said.
With this, the company is convinced that the importation of these products, and its associated cost, will be a thing of the past.
“The time taken to import these items are taken off, your freight cost, among others are taken off. Even if we are to charge you the same price as you pay for imported ones, you will see that you still can make a lot of savings from it. Relatively, our price will remain lower that what is imported, and of same quality and even more” Mr Amenyor stressed.
He intimated that company has demonstrated the capacity and excellence in the extractive industry as an indigenous company, and they prayed for the support of government and industries in the sector.
Nicholas Amenyor thus called on the Petroleum Commission to develop a framework that will support local industries, such as theirs, to maximize production.
He argued that such frameworks will provide a secured market for their products, as it will ensure that industries procure them locally.
“We appeal to the Petroleum Commission to come up with some rules and regulations that will ensure that our production will not be in vain… for the maximum infrastructure and complex equipment that we have come to put here in Ghana,” he said.
Currently the facility has a total of ten specialized technicians running the production unit – from threading to final stages of the stud nuts and bolts production.
Operations Manager, Ernest Gyamposu disclosed that these personnel have undergone intensive training from their partners in the UK.
“We’ve had trainers come from the UK, from both partners [Hydrasun and Steadfast] to train some of our personnel here. We’ve identified some key personnel who have also gone to the UK to some specialized training too, all to bring up personnel to speed and up to the task regards the operations we carry out here,” he noted.
Ghana Signs Deal To Buy Six Aircraft.
Government on Tuesday, November 19, 2019, signed a deal with De Havilland Aircraft of Canada at the on-going Dubai Air Show to buy six Dash8-400 aircraft to start its national airline.
Citi Business News understands that the aircraft will be purchased by the first quarter of 2020.
The plan to reestablish a national carrier has been on the drawing board for some time now.
Following the signing of the agreement, issues of financing and others are expected to be finalized which will be presented to Cabinet for approval and then to Parliament.
The new deal, signed by the Aviation Minister, Joseph Kofi Adda, is expected to boost Ghana’s dream of seeing to it that a new national airline hits the skies.
The Minister of Aviation, Joseph Kofi Adda, who signed the Memorandum of Understanding on Ghana’s behalf, said “They’re manufacturing Dash-8s, which used to be called Q-400, that can take upwards of 82 passengers. That will be able to serve the domestic and regional needs of the passengers. We’ve done our research and we’ve assessed all the aircraft available, and we think these ones are the ones most efficient and suitable given the weather and so on, that we can use to carry Ghanaians within the country and also send them to other West African countries all the way up to Senegal, The Gambia, Cameroun and Congo as well”.
“So these are things that the route planning people will work on as far as the details are concerned. But we want to be sure we’ve got the critical sets of aircraft that the airline can start operating them.”
Ghana has also signed an MOU (Letter of intent) for three (3) Boeing 787-9 planes.
“The second one is the Boeing 787-9, that’s a long haul. Long haul means it goes trans-oceanic. It goes to Europe, North America, it can go to Middle East and Asia. These were signed for three of the aircraft. These are all Memorandum of Understanding; they’re letters of intent indicating our desire to procure these aircraft. There are other processes we have to go through now with the manufacturers themselves, the government of Ghana, the approvals that would be required from all the government levels, we have to go through that between now and the end of the year to secure that.”
The Minister says Government will be assessing the various options in procuring the aircraft.
“There are different ways of procuring an aircraft. There’s a leasing arrangement which can go on with a third party paying for the aircraft, then you will pay periodically may be monthly or quarterly for the service of the aircraft with some down payment. There’s also the outright purchase which is another option. So these are options that we’ve weighed and we will place before government. We’re hoping that once government makes a decision on this, we will be able to make payments that are required for the aircraft to be delivered. We’ve been able to get some good discounts from where we are starting with the two manufacturers, and we think they’re reasonable terms which I cannot disclose for now, but once I meet cabinet and parliament these will become public knowledge.”
According to the Aviation Minister, a search is still ongoing on how to call the new national airline.
“So we’re happy that this has brought us to one tip of the bridge, so once we conclude the procurement, then we cross over to the next end of the bridge which means that we’re now airborne with a home-based airline. The name itself we’re waiting to discuss that at the government level, and gathering some inputs from different parties.”
MTN Ranked As Ghana’s Highest Tax Paying Firm.
Accra 18th November 2019. Ghana’s leading telecommunications network operator, MTN Ghana has for the second successive year been adjudged the Number One Company in Ghana, beating 99 companies to win the coveted title at the 18th Ghana Club 100 Awards.
MTN Ghana also received recognition as the Highest Tax Payer for the Year 2018, making the company the largest in the country in terms of tax payment. The company won both awards last year.
Receiving the awards on behalf of MTN Ghana, the Corporate Services Executive of MTN Ghana, Samuel Koranteng, expressed MTN’s appreciation to its cherished subscribers, stakeholders and staff who daily contribute directly and indirectly to the success of the company. He also thanked Ghana Investment Promotion Council (GIPC) for the recognition. He noted that the awards were a recognition of MTN Ghana’s commitment to the growth and development of Ghana’s economy.
“To have received these two awards two years in a row is a humbling achievement for us at MTN Ghana. It also demonstrates to our customers and shareholders our dedication and commitment to lead the delivery of a bold new digital world in Ghana”.
Commenting on the awards, the CEO of MTN Ghana, Selorm Adadevoh said, “It is gratifying to know that our continuous partnerships with various stakeholders are working to deliver a robust business”. He said, the company will continue to invest in bringing the best services to all of its customers in urban, peri urban and rural communities as it continues to deliver its digital agenda.
MTN has had an impressive track record in the annals of the Ghana Club100 Awards over the last 20 years. From the modest position of 65th company in 1998, Scancom Ltd rose to become the Number 1 Company in 2002, 2004 and 2018. In 2005 and 2017 MTN occupied the number 2 positions. The company has also received several recognitions in the Club 100 awards as the Fastest Growing Company, ICT Leader, Telecoms Company of The Year, and Largest Company of the Year and the Most Profitable Company at various points in time.
The company’s’ contribution to Ghana’s financial economy cannot be under estimated as it has received recognitions from other state institutions such as the Ministry Of Finance and Economic Planning when it awarded MTN for its contribution to CEPS Revenue and contribution to Corporate Tax Revenue in 2005.
The Ghana Revenue Authority recognized MTN as the Overall Best Tax Payer (Large Taxpayer’s Office/ Domestic Tax Division) in 2013 and 2014 respectively. MTN was adjudged the Highest Tax Payer in Ghana in 2017, 2018 and was given the Platinum award in 2019 by the Ghana Revenue Authority.
In 2018, the company paid a total tax of amount OF GHC 1.48 billion cedis to the Government of Ghana.
MTN continues to invest in its network to enhance customer experience. This year, the company has already invested more than $160 million for Network and ICT solutions translating into additional cell sites, an extension of fibre infrastructure and delivering of 4G technology to many more communities amongst others.
The Ghana Club 100 is an annual compilation of the top 100 companies in Ghana that gives due recognition to successful enterprises. The Ghana Club 100 is an initiative of the Ghana Investments Promotion Council.
PHOTOS: Kwarleyz Residence Hosts Jack Ma, Alibaba Executive Team, Other Celebs.
Accra’s premiere 5 star apart-hotel Kwarleyz Residence was home to Chinese billionaire Mr. Jack Ma and the entire Alibaba executive team on their recent visit to Ghana. Captured in the photograph the Chinese Tycoon was greeted by the Owner and CEO of Kwarleyz residence Nana Kwame Bediako. The two businessmen took a moment to exchange pleasantries and a warm welcome from the entire Kwarleyz management and team.
The residence also hosted other well-known faces including blockbuster movie star Jet Li and international super model Naomi Campbell who has made Kwarleyz her home away from home when visiting Ghana.
It is no surprise that Kwarleyz Residence, has become Ghana’s premium preferred hotel residence for celebrities and VIP’s when visiting Ghana. It’s stunning architecture, serenity, location, excellent service delivery, comfort and security is redefining Ghana’s hospitality space and creating a new buzz in the vibrant city of Accra.
Kwarleyz residence is one of four five star hotels and full serviced aparthotel properties held under the local operator, Belfast management group and includes, Number One Oxford Street, Osu, The Vyn Yard, Cantonments and Belgravia, Airport Residential area.