Most failed gold investments did not fail because there was no gold. They failed on title, permits, partners, security or cost. A disciplined review covers all of them before money moves.
1. Title: does the right exist, and who holds it?
- Confirm the type of mineral right (prospecting licence, mining lease or small-scale licence), the holder, the area and the expiry with the Minerals Commission.
- Check for disputes, overlapping claims and any notices of default. Leases can be terminated for unremedied breaches; one recent dispute over a lease at Konongo is before the High Court.
2. Geology: what is actually proven?
- Distinguish drilled, reported resources from surface “grab samples” and promotional claims.
- Ask whether resources are reported under a recognised code (such as NI 43-101 or JORC) by a qualified person.
- Commission your own independent review for any significant investment.
3. Permits and environment
- Environmental permits, water use and land access must be in place for the stage of work planned.
- Mining near water bodies and forest reserves is a sensitive policy area in Ghana.
4. Community and land
Surface landowners, traditional authorities and local communities need to support the project. Compensation and resettlement obligations can be significant.
5. Security and illegal mining
Encroachment by illegal miners is a real operational risk. Ask how the site is secured and what support the operator has had from the authorities.
6. Fiscal terms and offtake
- Royalties now follow a sliding scale linked to the gold price under the Minerals and Mining Royalty Regulations, 2025.
- Large-scale producers must sell 30% of annual output to the Bank of Ghana.
- For small-scale production, sales go through GoldBod and its licensed buyers.
7. People
Verify directors and beneficial owners, past projects and litigation. The quality of the operator usually matters more than the quality of the ore body.
Sources
- Minerals Commission: Overview of the Minerals and Mining Act, 2006 (Act 703)
- GhanaWeb: Northern Ashanti Mines challenges lease termination in court (26 October 2026)
- Citi Newsroom: Minerals and Mining Royalty Regulations, 2025 mature into law
- MINING.COM (Reuters): central bank purchase requirement
This article is for information only and is not legal, tax or investment advice. Rules and figures change; confirm the current position with the relevant authority or a qualified adviser before acting. Image: illustration (AI-generated).
