Established in 2019, Afrimex understands the ever-evolving dynamics of the gold mining world, standing as a beacon of adaptability and innovation in the sector’s ever-shifting sands. The company’s founders recently attended the LBMA/LPPM Global Precious Metals Conference in Koyoto, Japan, to embrace continuous improvement and advance standards in the industry. This article will look at Ghana’s gold mining industry and its potential to boost economic growth and opportunities for social mobility in rural regions of the country.
According to a paper published by the World Bank, Ghana’s gold mining industry is serving as a catalyst for proto-urbanization in rural parts of the country. Using cross-sectional data, the research suggests that locations within 10 kilometers of a gold mine have more night light, benefiting from proportionally higher employment and wages. The report suggests that employment decreases in towns and villages 20–30 kilometers from a gold mine. Over time, the data shows a correlation between gold production and increased employment and apprenticeship, with fewer people working for private informal enterprises. It also suggests changes arising from increased gold production tend not to reverse when large gold mines close or shrink.
Much debate remains over the question of why towns and cities spring up where they do. The birth of a town can stem from various factors, from the existence of a shrine or sacred place to the intersection of two ancient roads. Historically, the discovery of minerals has been a significant driver in the creation of new towns, notably in the American West. However, when the natural resources were exhausted, many of these towns were abandoned, with settlements falling into dilapidation and once-bustling urban hubs turning into ghost towns.
The World Bank paper examined whether Ghana’s gold mining boom had contributed to the formation of new urban areas. Gold has long been mined in the country. Indeed, in colonial times, Ghana was known as the Gold Coast. Due to a combination of an over-valued exchange rate, stagnating gold prices, and under-investment in primary production, gold exports fell after Ghana gained its independence from Britain in 1957. However, in recent decades, the country’s gold mining industry has seen a resurgence. Although some gold mines have closed down due to exhaustion of deposits, many major new mines have opened, fueling higher employment and greater economic prosperity in the country.
The World Bank’s research revealed a correlation between an increase in the output of formal gold mines and a higher proportion of employment. Unlike other parts of the world that experienced a gold rush, these new urban areas in Ghana did not go into decline after their local gold mines scaled back operations or closed. In this way, World Bank theorizes that gold mining in Ghana, like a “grain of sand in a pearl,” could trigger the formation of self-sustaining agglomerations.
Afrimex is committed to supporting the communities it operates in and is leading the way in environmental responsibility and sustainable mining. In the Ashanti region, the company has transformed a struggling operation into a profitable mine, driving an impressive 150% increase in production. Recognizing the huge potential of technological innovations to make gold mining safer, more efficient, sustainable, and environmentally friendly, Afrimex has invested significantly in equipment modernization, in the process achieving a 35% operational cost reduction. Committed to environmental restoration, the company has also rehabilitated 120 aces of former mining land.
What differentiates Afrimex from other major players in the Ghanaian gold mining industry is its focus on innovation and adaptation, with the company continually evolving with industry changes. Operating via a quality-driven model with excellence as the foundation of innovation, Afrimex leverages advanced technology – implementing cutting-edge solutions and embracing strategic innovation and forward-thinking operational approaches.
A comprehensive provider of complete mining solutions integrating all aspects of gold operations, Afrimex is an environmentally responsible company that forges strong partnerships with local communities, spurring economic growth and prosperity – not just for its stakeholders but at a local and national level.