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Record gold prices are spurring exploration in West Africa, including deposits previously considered uneconomic; however, such enthusiasm needs to remain rooted in sound geological data, as well as responsible mining principles, according to Ivan Doku, country manager of SRK Consulting (Ghana).
“The boom is opening up opportunities but also demands confidence in the geological and metallurgical prospects of these deposits – which will underpin the investment decisions,” said Doku, who is also a principal resource geologist and partner in the firm. He notes that the current wave of mineral exploration is concentrated largely on gold, with investors particularly attracted to shallow deposits that offer the prospect of relatively rapid returns.
“Exploration programmes are combining soil sampling and geophysical surveys with drilling to identify and delineate mineralisation in countries in the region, including Ghana and Côte d’Ivoire,” he said.
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The result is a growing pipeline of work for SRK’s Ghana office, which has grown to eight permanent Ghanaian staff and numerous associates since its founding 15 years ago, often working in collaboration with the company’s international exploration and environmental, social and governance (ESG) specialists.
Localisation and ESG
“The renewed exploration activity is, of course, not simply about finding more gold and other minerals,” he said. “It is about determining whether deposits can be defined accurately, mined efficiently and processed economically, and whether the wider investment proposition stands up to scrutiny.”
Among the critical modifying factors in determining a mineral reserve are regulatory, environmental and social issues, emphasised Roanne Sutcliffe, environmental engineer at SRK Consulting (South Africa).
“There is growing emphasis on localisation of expertise and procurement across West Africa,” said Sutcliffe. “Mining companies are increasingly expected to demonstrate how local participation is incorporated into their operations, while ownership structures are also evolving as international mining houses sell assets to local companies or consortia.”
For investors, this means assessing not only a deposit’s geological and financial merits, but also how a project will be developed, who will own it and how local participation will be structured, she noted. Due diligence on mergers, acquisitions and changing ownership arrangements has consequently become an important part of the region’s mining landscape.
Proving other commodities
Although gold dominates current exploration activity, West Africa has significant potential in other commodities, including iron ore and lithium. Doku cautioned against the assumption that this potential could all translate into investment.
“Manganese and graphite exploration, for instance, remain limited,” he said. “Investment decisions will continue to be driven by the economics of individual commodities, the scale of deposits and geopolitical considerations.”
Iron ore illustrates the gap that can exist between geological potential and an investable resource. Doku points to projects where the product or market specification of the ore has not yet been established sufficiently to support any unequivocal claims about their viability.
“Analysing the iron content of a deposit is not enough,” he explained. “The presence and quantities of silica, potassium and other contaminants will determine whether material meets market specifications, affecting its commercial value and suitability for processing.”
He emphasises that reliable drilling, sampling and assay procedures are fundamental to resource estimation. Where any phase of these processes does not meet expected industry norms, the resulting datasets can be rendered unsuitable for geological modelling and grade estimation – with further impacts on resource classification. While mining majors generally have established operating procedures and quality control systems, some junior operators tend to cut costs without appreciating the consequences.
“For investors, unreliable data introduces uncertainty into resource estimates and can undermine an otherwise promising project,” said Doku. “The cost of getting exploration wrong can therefore extend well beyond the drilling programme itself.”
Decarbonising by design
Energy efficiency and decarbonisation are increasingly material investment and design criteria, according to Philippa Burmeister, partner and principal scientist at SRK Consulting (South Africa). While these issues are driven by fuel-price volatility and the expectations of lenders and shareholders, they also offer operational benefits.
“Most major mining houses have set targets to achieve net zero greenhouse gas (GHG) emissions by 2050,” Burmeister noted. “West Africa’s energy landscape presents both opportunities and constraints – with Guinea benefiting from a grid with a high renewable-energy contribution, and Ghana, Côte d’Ivoire and Mali also having significant renewable generation.”
However, unreliable distribution networks mean that mines often depend on backup systems such as generators. These systems, along with diesel consumption in mining equipment and haul trucks, remain a major contributor to mining’s carbon footprint. Alternative technologies can help, she explained, but their practicality depends on mine design. Relevant factors include haulage gradients and distances, as well as the availability of equipment, replacement parts and maintenance skills in remote locations.
“SRK is helping clients identify workable lower-carbon options through process optimisation, mine-design adjustments and technology assessments, alongside opportunities for carbon sequestration in tailings,” she said.
Geological complexity and refractory gold
Doku added that geological challenges are particularly acute in West Africa’s structurally controlled gold deposits. Mineralisation may occur in narrow veins with it associated structural complexities.
“Without a sound understanding of these structures, exploration teams risk following an orebody in the wrong direction,” he explained. “The consequences of an incorrect interpretation can be especially severe for underground mines, where a relatively small geological displacement in the general trend of the mineralisation may leave mine development following barren ground.”
Processing presents another obstacle. As more attention turns to deposits that are less straightforward to exploit, refractory gold is becoming an important technical consideration. Such deposits can contain substantial gold resources, but conventional processing plants may struggle to recover the metal economically.
“In parts of Ghana’s Ashanti Belt, for example, mineralisation has remained difficult to exploit because existing processing technology has not delivered adequate recovery,” he said. “Re-engineering plants and evaluating alternative metallurgical approaches may be necessary before these resources can become commercially viable.”
Building responsible operations
Environmental and social considerations have also become integral to project feasibility, highlighted Sutcliffe, including the careful balancing of mineral development with sensitive ecosystems, water resources and host communities.
“In Ghana, for example, extensive artisanal mining along river systems has contributed to degraded surface water environments, creating wider stewardship challenges for the industry,” she said. “Major mining companies are increasingly working with communities and regulators to improve environmental management, although practices remain uneven across the region.”
Many mines are still trying to understand how best to balance responsible mining practices with the desire for rapid growth during the current boom. Understanding and management of risk is therefore key to the continued expansion of mining projects in the region – to ensure that any opportunities available to companies can be readily capitalised, both financially and from an ESG perspective.
SRK: Rooted in West Africa
Long before localisation became regulated, SRK Consulting has operated a local practice in Ghana to serve its West African clients. Established 15 years ago, the local team has grown to eight permanent Ghanaian employees, and its traditional geotechnical focus has expanded to provide multidisciplinary support through its local professionals and international partnerships.
“For West Africa, the next phase of mining growth will depend not simply on the availability of mineral resources,” said SRK Consulting Ghana country manager Ivan Doku. “It will rely on the ability to demonstrate value through reliable data, appropriate technology, responsible development and sound investment decisions.”
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