• Azumah Resources starts building Black Volta gold mine in Ghana, aiming for 163,000 oz/year
• Funded by shareholders; initial cost estimated at $147 million in 2020
• Project delayed by a contract dispute and pending regulatory approvals

Azumah Resources, a wholly owned subsidiary of Australian firm Ibaera Capital, announced on Friday, July 4, the start of construction on its future Black Volta gold mine in Ghana. According to the company, preparatory work has begun following a capital injection from its shareholders. This funding aims to advance a project expected to boost the West African country’s gold output, with an initial production capacity estimated at 163,000 ounces per year.

“Following the successful securing of project financing from Azumah Resources existing shareholders, Azumah Resources has initiated preparatory works on site and will now proceed with full-scale development activities, including infrastructure, civil works, and recruitment,” the company said in a statement.

While the exact amount of funds raised was not disclosed, a 2020 feasibility study had pegged the initial investment for Black Volta at $147 million. Once operational, the mine is projected to produce an average of 163,000 ounces of gold, about 5 tonnes, annually during its first five years. This would represent roughly 3% of Ghana’s national gold output, which rose to 4.8 million ounces, or 150 tonnes, in 2024.

No commissioning date has yet been announced. It is worth noting that construction had been on hold since July 2024 due to a dispute between Azumah and engineering company Engineers & Planners. Engineers & Planners, originally tasked with project development, had its contract terminated for alleged non-compliance with contractual obligations.

The matter is currently under arbitration at the International Chamber of Commerce (ICC), and its impact on the project timeline remains unclear. At the same time, Azumah still needs to secure regulatory approvals from Ghanaian authorities to proceed with full-scale mine development.

Aurel Sèdjro Houenou