The Challenges of Supply Chain in the Gold Mining Sector of Obuasi Municipality of Ghana

Abstract

Gold mining industry represents an important source of socio-economic development in most economies. Ghana has had its fair share of the benefits the mining sector brings by way of direct revenue generation and job creation. In spite of this significant contribution from gold mining, the sector appears to be facing various forms of challenges. This study aims at assessing the supply chain challenges facing the gold mining operations in Obuasi and its environs in the Ashanti region of Ghana. A combination of qualitative and quantitative methods with case study strategy was used in the study. Primary data was collected from field survey through questionnaires, semi-structured interviews and observation. The data was analysed using quantitative and qualitative approaches. The major supply chain challenges found to be facing the mining sector in Obuasi include supply of low quality products, unreliable or variable lead times, non-availability of local firms of international standard, fluctuation in Gold prices on the international market, high transportation cost and violence and sporadic attack from the communities. It is recommended that the mining firms should involve their key and strategic suppliers in product designs and development of specifications. Also, improving upon information sharing and building trust and transparency and developing the capacities of their key suppliers to improve the performances of the entire supply chain could also deal with delays and quality related supplies. Finally the Ministry of Energy, the Environmental Protection Agency and other institutions should collaborate with the mining firms to deal with issues of environmental pollution and matters of perceived inadequate compensation to community members whose farm lands get destroyed by the mining activities to address any unhealthy conflicts between the mining firms and the communities.