Mining in West Africa is booming. According to Duncan Bonnett of Africa House, significant project development has been taking place in the region, with countries and mining houses wanting to capitalise on the higher commodity prices and the growing demand for metals.“Countries across West Africa are looking at unlocking mining opportunities and serious attempts are being made to develop the sector,” he told Freight News. “We are seeing these developments in Nigeria and Burkina Faso, Ghana, Senegal, Guinea, Cote d’Ivoire and several others. ”The region is also no longer just focused on gold projects, but looking at a vast range of minerals.“If we look back 15 years, southern Africa was the mining capital of the continent with a few mines here and there in other regions. West Africa dominated in the oil sector, while it also had a hand in agriculture. ”The roles had, however, reversed, said Bonnett, indicating that southern Africa was now where gas and oil exploration was targeted, while mining exploration was at an all-time high in West Africa.“Attempts are increasing to unlock the huge mining belts, and it is not just gold that is being invested in, but also a variety of other metals and minerals, including iron ore, bauxite and diamonds.”Bonnett said new mining codes were being drawn up by various countries eager to attract and secure foreign investment. “There is a clear move towards reforming mining legislation to entice investors and to create a business-friendly environment.“We are also seeing investment into infrastructure as countries realise the importance of redeveloping their rail and port infrastructure to support the growing mining industry.”Whilst the region remained “prolifically challenging”, said Bonnett, there was a realisation by the mining industry that West Africa offered very real potential. According to a recent white paper released by mining service provider Capital Limited, a substantial increase in exploration is expected as mining houses set out to replace mined production and increase reserves and resources ahead of another metals supercycle.“The West African mining industry has seen significant fundraising activity since the fourth quarter of 2020, driven by higher metal prices and a need to identify and mine metals to fulfil growing global demand,” reads the paper. But, it found, as with any rapid increase in activity, a mismatch in demand and supply of exploration, delineation and production drilling rigs existed and this had the potential to put the mining and exploration industry in the region under significant pressure.Bonnett said the physical threat by Islamist insurgents continued to be monitored as it posed risk for investors. “The situation in the region can be very volatile and risky from a venture perspective. Despite this though we have seen big mining houses weigh up this risk and still proceed with projects.”One of the most exciting projects is the development of a very large deposit of bauxite in Guinea, a country that has moved up 23 places in the World Bank’s doing business rankings this year.New mining codes are being drawn up by various countries eager to attract and secure foreign investment.– Duncan Bonnett
