Mining companies in Ghana face complex and unique logistics challenges. From safely transporting different types of raw material to complying with various rules from Ghanaian government agencies, entering the Ghanaian mining community is not an easy task.
The mining industry requires localized, integrated logistics solutions while operating in Ghana, and logistics parks may be the answer. By investing in these facilities, mining companies can reduce capital expenses, improve sustainability, and de-risk entry and expansion into West Africa.
This article will discuss logistics parks as ideal for gold mining companies in Ghana, their features, and how Agility Logistics Parks can help streamline the mining supply chain.
Features of logistics parks for mining companies in Ghana
Mining is a labor- and resource-intensive operation. Companies need space to store large, expensive mining equipment, manage inventory, and transport heavy materials to various ports. Managing these daily activities can be challenging without the proper infrastructure.
Using legacy supply chain systems, a mining company can harm efficiency and struggle to stay competitive. However, logistics parks streamline these complex processes so companies can focus on growth and innovation.
The current state of mining company logistics in Ghana
As of the second quarter of 2021, Ghana’s mining and quarrying sector contributed 4.9 billion Ghanaian cedis to its gross domestic product. The West African country is the largest producer of gold on the continent and a major producer of valuable materials like bauxite, diamonds, and manganese. There is also ample columbite-tantalite, feldspar, iron ore, limestone, quartz, and salt deposits.
The mining industry is an economic pillar, and there are several gold companies in Ghana. Since the 1980s, Ghana’s mining production and logistics have been privatized, which has led to flourishing foreign investment. With this, significant infrastructure is available to support mining companies’ supply and distribution needs, including logistics parks. The best logistics facilities enable easy access to major airports, seaports, roads, rail networks, and capital cities.
For example, the Agility Logistics Park (ALP) in Ghana is in the Tema Free Trade Zone, a major industrial city in the country. Tema is approximately twenty-four kilometers from the Kotoka International Airport in Accra, Ghana’s capital.
The 165,000-square-meter facility is adjacent to the Tema-Aflao road, part of a central corridor connecting Abidjan, Côte d’Ivoire, to Lagos, Nigeria. Additionally, the ALP is close to the Port of Tema, the largest seaport in Ghana, covering over 3.9 million square meters.
Benefits of logistics parks over legacy supply chain infrastructure
Historically, mining companies have managed their value chain across separate divisions, leading to siloed operations. Rather than host all supply chain activities for a region in one location, distributed teams manage individual tasks.
As a result, many mining companies face bottlenecks, poor communication, and other challenges while trying to stay ahead in a rapidly changing industry. However, logistics parks can help break down these silos and facilitate faster innovation and growth.
Logistics parks are large facilities that offer key amenities to support companies’ operations, including warehousing, laydown space, and even on-premises corporate offices. These modern facilities provide the storage, processing, and warehousing space mining companies need.
By investing in a logistics park, mining companies gain access to valuable features and amenities, including the following:
- Ample storage and warehousing space: Mining equipment can be large and heavy. Logistics parks provide ample and secure storage space for this equipment and raw materials. These facilities also include laydown space for temporary storage.
- Inventory planning and supply chain streamlining: Logistics parks enable a better way of managing inventory and supply.
- Waste management services: For mining companies, the safe disposal of waste is a key regulatory consideration. Many logistics parks have full waste management and recycling services to support their operations and drainage systems.
- Full security: Many mining companies must invest in their security services, which can be expensive. Logistics parks feature fully secure and walled compounds and CCTV monitoring systems, preventing unauthorized users from entering controlled facilities.
- Data centers and IT infrastructure: Modern mining companies are more digitally connected than ever. As a result, the industry requires a fast, secure data infrastructure. Some logistics parks provide mining companies with data centers and other key technologies, providing complete supply chain visibility.
- Better connectivity: Logistics parks are typically situated in industrial belts near important airports and ocean ports. Because of this, companies operating in logistic parks benefit from maximum connectivity required to foster business growth.
Environmental benefits for mining companies using logistics parks in Ghana
Global mining companies face tight restrictions and increased pressure from governments, investors, and the public to reduce environmental harm. Mining news in Ghana points to these challenges.
Mining has contributed to severe environmental damage in Ghana, particularly affecting water bodies. The country’s per capita availability of water resources decreases every day due to pollution from illegal mining and extraction-related waste. That has made it an urgent priority to clamp down on illegal mining in Ghana.
The quarry and mining industry has also contributed to significant air pollution and land degradation in Ghana, affecting agricultural activities and public health. In response to the environmental impact, the Ghanaian government has implemented strict regulations for mining companies across the country.
It is crucial for mining companies to search for sustainable solutions when expanding into markets like Ghana. This fact has been long recognized, but most attempts to lessen the sector’s environmental impact have been internally focused. Mining companies are called to achieve corporate sustainable solutions, socially-sound practices, and environmental thinking to improve their supply chain and logistics design.
By investing in infrastructure at a logistics park, the mining industry can facilitate regulatory compliance, as well as reduce its overall carbon footprint.
For example, the Agility Logistics Park in Ghana offers the following sustainability benefits:
- The ALP is close to major roads, seaports, and other distribution networks, reducing the distance that mining companies need to drive to transport their materials. This maximizes a company’s distribution efficiency as well, saving money.
- Agility Logistics Parks operates sustainable infrastructure to reduce environmental impact. Solar panels reduce energy costs and consumption, helping mining companies commit to sustainable change.
- Mining companies also have full waste management services when they invest in the ALP, helping them safely dispose of mining waste. Additionally, Agility Logistics Parks includes full recycling zones, helping further reduce carbon emissions.
These sustainable initiatives not only help companies reduce their environmental impact but also help them save money. In one case, Agility Logistics Parks helped increase a customer’s reuse rate from 47 percent to 72 percent through efficient waste management, unlocking $78,000 in savings.
How mining companies can find the right logistics park in Ghana
Logistics parks are ideal solutions for mining companies operating in Ghana. To find the right facility to support their operations, the Ghanaian mining community must consider compliance requirements, amenity availability, and options for sustainability.
There are several laws and regulations that mining companies must follow in Ghana. For example, the Minerals and Mining Act of 2006 is the primary piece of legislation governing the industry. This Act sets rules for mineral rights, small-scale mining, and other activities.
The Ministry of Lands and Natural Resources holds overall responsibility for the mining industry, while the Environmental Protection Agency sets environmental regulations. For example, mining companies must renew environmental permits every eighteen months in Ghana and follow key waste disposal and storage regulations.
The mining community requires deep expertise and knowledge of Ghanaian mining regulations to select the ideal logistics park. Additionally, companies should look for key features such as ample storage space, strong security, and entire property and facilities management.
A logistics park should also offer IT infrastructure for maximum connectivity and sustainable practices to enable efficiency. However, many logistics facilities do not offer these key amenities.
Agility Logistics Parks works to ensure strong sustainability, compliance, and reliability across its facilities. By investing in space at the Agility Logistics Park, mining companies gain strategic access to valuable distribution hubs and complete value-added services to support their supply chain.
Mining companies using logistics parks in Ghana
The mining industry is highly visible in Ghana. The Ghana Chamber of Mines is an organization of representatives of mining companies in the country. Some of its Represented Members, who have commercial operations in Ghana, include Asanko Gold Ghana, Newmont Ghana Limited, Golden Star Resources, and Perseus Mining (Ghana) Limited.
Forward-thinking mining companies and related operations rely on logistics parks to power their operations. For example, a gold company in Ghana, Weir Minerals West Africa (Weir) provides industrial equipment, such as pumps and valves, to support some of the world’s leading mining operations.
Weir hosts its West African storage and office operations at ALP, enabling the company to execute critical services in one location. Weir also used ALP offerings to bring its facility into compliance, satisfying its parent company’s safety standards.
It’s clear that migrating to a logistics park can provide key benefits and amenities to mining companies. However, leaders often want to establish a business use case before investing in a facility. To compare legacy systems to integrated logistics parks, track the following metrics fully:
- Resource usage and efficiency
- Shipping and distribution costs
- Ease of inventory management
- Speed to market in Ghana
- Capital expenses
- 24/7 power and security
Expand into Ghana with Agility Logistics Parks
“Logistics parks as ideal for mining companies in Ghana” is more than a thought experiment. These integrated facilities are vital for mining in Ghana, promoting sustainability, efficiency, and continued growth.
If your mining company wants to expand into Ghana, you need a strong infrastructure to support your complex operations. The Agility Logistics Park in Ghana has the space, amenities, and industry knowledge you need. Visit Agility today to learn more about this sophisticated facility and discuss your next steps.