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Mining News August 16, 2019 12:30:45 PM

Significant Investment Opportunities Spotted in West African Gold Mines

Paul Ploumis
ScrapMonster Author
The South African gold mining industry has been on constant decline in recent years.

Significant Investment Opportunities Spotted in West African Gold Mines

SEATTLE (Scrap Monster): South Africa’s Public Investment Corp. (PIC) foresees significant investment opportunities in West African gold mines. It predicts next gold mining boom in the region.

According to PIC, the investor-friendly mining policies by countries in the region including Ghana are likely to drive next gold mining boom. It foresees vast investment potential for low-cost mines in Mali, Burkina Faso, Guinea and Ivory Coast, as compared with mines in South Africa, whose lifespan is projected to be short.

The South African gold mining industry has been on constant decline in recent years. Many mining majors have shifted their focus from South Africa to long-term projects elsewhere in the continent. For instance, AngloGold Ashanti Ltd. is currently under the process of selling its last South African underground mine. Simultaneously, it has been expanding its presence in Ghana, which has recently outclassed South Africa to become the largest gold producer in the region, PIC noted.

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Another major miner Gold Fields Ltd. had recently announced that its Ghanaian gold production surged higher by 25% in the first half of 2019. The company is mulling to extend the lives of its Tarkwa and Damang mines.

PIC noted that though South African government has fixed certain regulatory issues, the country still has not been able to project itself as investor-friendly. At the same time, the plentiful opportunities make West Africa a preferred destination of new gold mining investments.

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