Copper & controversy in the DR Congo

Abstract

Dependence on the mineral sector is central to economic reforms in Africa. These reforms have the objective of increasing economic growth and reducing poverty. Mineral endowed countries such as Ghana have been successful in attracting foreign direct investment (FDI) to the mineral sector through liberalisation of mining codes, which provide generous concessions to foreign multinational mining companies. UNCTAD (2005) indicates that a large proportion of FDI to Africa has gone into the mining sector with the continent attracting mining investment to the tune of $15 billion in 2004. This represented 15% of the global total and a considerable increase of 5% from the mid-1980s.According to Kwasi Barning (n.d.) foreign exchange earnings from mineral production in Ghana increased from $108 million in 1985 to $710 in 1999. This could be attributed to the gold price hikes, reforms of the mining regulatory framework of Ghana, which provided mining companies generous tax exemptions, facilities for profit repatriation and stability of investment. Mining districts such as the Wassa West District became the location of eight multinational surface mining companies from the late 1980s. Gold Mining in Ghana -The Jungle BoomsThe gold industry goes through 'boom and bust cycles'. Ghana has experienced three gold rushes in periods described as Jungle Booms.