The proposed merger of two of Ghana’s large-scale mining companies, Goldfields and AngloGold Ashanti has been touted as a game-changer for the country’s mining industry.
Although the proposed merger may have been delayed, the Ghana Mine Workers Union (GMWU) believes the merger presents an opportunity for the sector and the economy at large.
The move has faced significant delays due to a lack of government approvals. The deal, which was initially announced in March 2023, aimed to create the largest gold mine in Africa, with Gold Fields holding a 60% stake, AngloGold Ashanti 30%, and the Ghanaian government 10%.
In a joint statement, the companies noted that “Gold Fields and AngloGold Ashanti have sought to secure the requisite approvals, which include approval of the Proposed Joint Venture by the Parliament of Ghana, ahead of the October 2024 Parliamentary recess before the Ghana national elections to be held in December 2024”
But the Mine Workers Union believes this merger is a golden opportunity that should not be frustrated.
The General Secretary of the Mine Workers Union, Abdul-Moomin Gbana tells The High Street Journal that the integration of these two heavyweights in the gold mining industry is set to unlock significant economic advantages, particularly through the economies of scale that will be realized when the companies merge their operations.
He further notes that this move will help increase the capital, enhance productivity, and more importantly lead to the creation of more jobs in the mining sector.
“It presents an opportunity and the opportunity is in the economies of scale that would be achieved when the two mines come together i.e Goldfields and AngloGold Ashanti. So there will be an opportunity for increased employment, the opportunity for higher productivity by way of ounces of gold produced,” the General Secretary indicated.
He also mentioned that the combined forces of Goldfields and AngloGold Ashanti could transform them into an even bigger giant in the global mining arena. “Once they come together, two big giants become one even larger entity,” he noted. “Capital increases, manpower increases, and production potential increases. Clearly, there is a leverage.”
The merger, he believes, will not only fortify Ghana’s position as a top gold producer but also create ripple effects across the mining supply chain, spurring growth in ancillary sectors such as local manufacturing, logistics, and services.
There will be a corresponding decrease in overall cost because there will be a leverage on efficiency.
He however dispelled the notion that the delays are having any impact on the mines workers are all workers are currently working in their respective mines awaiting approval.
“Strictly speaking the delay is not having a direct impact on our members not at all” Abdul Moomin-Gbana clarified.
