Report ranks Ghana high for mining investment
Ghana has been ranked high as one of the best countries in the world to engage in the mining business.
The country’s already booming mining industry received a boost following the release of the Bahre Dolbear’s 2010 ranking of countries for mining investment that placed Ghana at a position of eight.
The countries were assessed against seven main categories. The report titled “Where Not To Invest” which had seven categories included a country’s economic system, degree of social issues, delays in receiving permits, degree of corruption, currency stability, and tax regime. It also assessed the political risk of mining investments in 25 mineral-rich countries in the world.
Ghana scored total points of 36 in tie with Botswana and Mongolia affirming the relatively congenial climate in the mining industry for the past decades.
According to the report, each category under consideration is rated from 1 to 10, with the highest being 10. This means the maximum score attainable for a country is 70 points.
Though Ghana finds herself in a reputable position worth attracting investments into the mining sector, the report cites Ghana as performing poorly in terms of improving on social issues, the third category. Social Issues continue to be the highest risk facing the development of mineral projects in every country – a phenomenon being fomented and advanced by advocacy NGOs into mining. The report stated “Ghana’s societal picture has clouded, with inter-tribal issues and government interference putting a negative light on the country”. The country, therefore, dropped one point in this category to a rank of 2 compared to the 2009 ranking.
The country was again downgraded by one point to a rank of 6 under the fourth category – Permitting Delays – as government delays are affecting new investments.
In the detailed scoring results, Ghana had 6 out of 10 under economic system, 6 for political system, 2 for social issues, 6 for permitting delays, scored 4 under corruption, 6 under currency stability and 6 under tax regime totaling 36.
Behre Dolbear Group Inc is a Colorado based mining industry consulting firm that assesses the political risks and investments in various mineral-rich countries since 1992. Australia had the highest point of 61 out of 70, followed by Canada with 56 points and Chile attaining the third position with 49 points.
Ghana’s poor performance in the category of social issues and corruption brings to light the need to end the era of secrecy that has shrouded the mining sector. Transparency will bring to light all details of contracts between companies and government as well as the exact revenues that companies make for government. On social issues, the mining industry must embrace the principles of sustainable development as a vital ingredient in maximizing mining investments.
In totality, however, Ghana has improved upon its investment climate in the mining industry.
Mining has been going on in Ghana for over 100 years.
By Stephen Yeboah