Gold Industry In Ghana
The gold industry in Ghana began during the gold boom between 1877 and 1883. Though often referred to as a “gold rush” by Europeans, it was actually led by a group of educated African merchants from the coast. These merchants aimed to bring new investment into a struggling West African economy that mainly relied on exporting palm products. Three important African figures in this movement were Ferdinand Fitzgerald, Dr. James Africanus Horton, and W.E. “Tarkwa” Sam, a trained mining engineer often called the “father of Ghanaian mining.”
However, the early years of mechanized mining faced many challenges. Both African and European workers dealt with poor health conditions, simple mining equipment, lack of engineering skills, and inexperienced management. There was also insufficient investment and poor support from the colonial government. Transportation challenges were a major issue. Before 1900, heavy mining equipment had to be broken down into smaller parts weighing up to 200 pounds and transported by canoe up the Ankobra River and then carried by human porters over long distances.
Out of 37 mining companies, only 10 were actively mining, and just three produced significant amounts of gold. The British government was hesitant to fund railways until 1900. As a result, many mining machines broke down before they even reached the mining sites.
In 1901, the British government began building a railway from Sekondi (a port town) to the mining areas, with additional railways to Tarkwa, Obuasi, and Prestea in the following years. This was a turning point for the gold industry. The new railway system allowed for better transportation of heavy machinery, and a second gold rush followed, even bigger than the first. By 1904, over 3,500 mining concessions had been leased to more than 200 companies, with investments totaling over £4 million.
One of the biggest beneficiaries of this new railway was the Ashanti Goldfields Corporation (AGC), which was founded with support from investors in London. During its peak years, the AGC produced over eight ounces of gold for every 10 tons of ore mined. From 1905 to 1919, gold production remained steady at about 300,000 ounces per year, worth around £1.27 million annually. The mining industry faced a downturn in the 1920s, but gold production increased again in the early 1930s as the global gold price dropped.
During World War II (1939–1945), demand for gold soared, and Ghana’s production reached its highest levels. Between 1930 and 1950, gold production averaged 557,000 ounces a year, worth £2.36 million. The workforce also grew significantly, from 7,165 workers in 1930 to 31,072 by 1950. Many of these workers came from northern Ghana and neighboring French colonies, such as Upper Volta (now Burkina Faso) and Côte d’Ivoire. This period also saw the rise of trade unions in the mining industry.
In the 1960s, after Ghana gained independence in 1957, most of the country’s gold mines became unprofitable. The Ghana State Mining Corporation took control of these mines, while the Ashanti Goldfields Corporation was taken over by the Lonrho Group, a multinational company, in 1969. The AGC and the Ghanaian government eventually formed a joint management agreement to oversee the industry’s direction, investment, and profit distribution.
This was a significant period in the growth of Ghana’s modern gold mining industry, which continues to be a major part of the country’s economy today.
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