• 1 day Statoil Changes Name
  • 2 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 2 days Tillerson just sacked ... how will market react?
  • 2 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 19 hours Russian hackers targeted American energy grid
  • 16 hours Is $71 As Good As It Gets For Oil Bulls This Year?
  • 2 days Proton battery-alternative for lithium?
  • 2 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 16 hours Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 19 hours Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 2 days I vote for Exxon
  • 2 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 17 hours HAPPY RIG COUNT DAY!!
  • 2 days Why is gold soooo boring?
  • 2 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 16 hours Spotify to file $1 billion IPO
Alt Text

Tanzania Wages War Against Gold Miners

Tanzania’s national government is stepping…

Alt Text

What Gold Can Tell You About Oil Prices

Traders will often pick and…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

Did Africa's #2 Gold Nation Just Suspend All Mining Projects?

Ghana gold

Potentially major development in the gold space this week. With one of the world’s go-to producing nations apparently going through a regulatory upheaval — which could affect new projects and output.

That’s in Ghana. Where the federal government said it has suspended issuance of new mining licenses across the country.

That news was delivered at a town hall meeting Monday, by Ghana’s Vice-President Mahamadu Bawumia. Who simply noted, “We have suspended the issuance of mining licenses so that we can restructure the sector.”

VP Bawumia gave few details beyond this. But did add that the move was part of a five-year plan for mining developed by the government — with the aim to “improve the management of small scale mining to protect the environment.”

The mention of “small scale” mining is key here. With the sudden suspension of mining licenses coming after recent high-profile media campaigns in Ghana have highlighted the damage done by illegal artisanal operations around the country.

The government’s regulatory actions thus appear related to the small-scale mining problem. Leading some observers to speculate that the mining license ban might only apply to small projects — not the large-scale operations that provide the bulk of Ghana’s gold output.

But officials did not confirm whether the licensing suspension applies just to small-scale mines, or to all projects. Leaving open the possibility that new projects may be completely off the table for the time being. Related: Gold Prices Rise As Demand In This No.1 Gold Market Soars

If licensing is indeed completely suspended, it would be an important development for the global gold sector. With Ghana producing 2.9 million ounces last year — making it Africa’s second-largest supplier after South Africa, and the number 11 producing nation globally.

Vice-President Bawumia also said new rules are coming to prevent mining “around water bodies” — which could put a further dent in new projects. Watch for clarification from the government on where the licensing ban will apply, and what the timelines might be for a restart to permitting.

Here’s to stopping and starting.

By Dave Forest

More Top Reads From Oilprice.com:

Back to homepage

Trending Discussions

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News