Ghana Makes Change to Revive Its Gold Mining Industry

The decade of the 1990s promises to be one of increasing internationalization for domestic minerals producers as they scramble to enhance relative positions in highly competitive, international minerals markets. This "international mining rush" is fueled by developing countries seeking international investment capital to explore for, develop and exploit sizable mineral endowments in an attempt to support the increasingly popular, but expensive, wave of democracy and selfdetermination sweeping the world. This "fuel" typically takes the form of revised mining codes and, often, lucrative investment incentives. These incentives include favorable tax rates, royalty provisions, relaxation of import/ export constraints, depreciation schedules, profit repatriation and other variables that can positively impact mineral investment decision making. Concomitantly, in their attempts to address real and perceived short- and long-term woes associated with enhancing competitive positions internationally, many domestic explorers and producers are attracted to the prospect of finding high-grade deposits in relatively virgin areas. Combined with the investment incentives provided by foreign governments, these high-grade deposits promise lucrative potential returns from projects having short payback periods. Classic examples of this mutual desire to intensify international mining efforts by domestic producers are illustrated by activity levels in countries like Chile, Bolivia and Venezuela in Latin America and, more recently, in Eastern Europe and select locations in the former Soviet Union. As US corporations scurry to send fact-finding, technical, evaluation and financial teams to these presently popular locations, one area of the world has received little attention - Subsaharan Africa. Specifically, the country of Ghana (formerly the Gold Coast) deserves more attention than it appears to be receiving from North American mining companies.