Risk assessment of mining projects in Ghana

Abstract

Purpose The purpose of this paper is to assess the critical risk factors affecting mining projects in Ghana. Design/methodology/approach A purposive sampling approach was used in selecting the respondents for the study. These were practitioners working on mining projects in Ghana. Findings The study identified 22 risk factors contributing to mining project failure in Ghana. The five most critical mining project risk factors based on both probability of occurrence and impact were unstable commodity prices, inflation/exchange rate, land degradation, high cost of living and government bureaucracy for obtaining licenses. Mitigation measures for addressing the identified risk factors were identified. Research limitations/implications This paper is limited to data collected from practitioners working on mining projects. Due to geographic and logistical constraints, the study did not include the perception of local communities in quantifying the risk factors. Practical implications This paper has documented the critical risk factor affecting the mining industry in Ghana. Though the identified risk types are also prevalent in other sectors of the construction industry, the key findings of this paper emphasize the need for a comprehensive risk management culture in the mining sector. From an academic research perspective, the paper contributes to a conceptual risk assessment framework. Originality/value The information gathered through this research can be utilized in identifying and understanding risks during the early stages of mining project implementation.