"Ramoth is looking to expand into new jurisdictions. Our long-term ambition is to leverage the domestic opportunities and then expand quickly into neighbouring countries."
Could you give our audience a background of Ramoth Services?
Ramoth Services is an indigenous Ghanaian mining and civil engineering company established in 1974. We started as plant hire company, but since 1988 we became a fully integrated mining support services company. We primarily undertake mining contracts for AngloGold Ashanti, Obuasi and Iduapriem mine. We also have had contracts with Kinross, Chirano mine and Asanko mine.
What makes Ramoth Services a preferred contractor in the competitive Ghanaian services space?
International companies come into Ghana with extensive logistics infrastructure, capital and experience, which has a bullying effect on the market. Mining companies choose us because we offer lower overhead costs as well as the flexibility and readiness to work within their budgets. For the past few years, the government has also worked on introducing local content laws to protect indigenous companies. As a result, multinational players have started entering JVs with local contractors to satisfy new localization requirements. Ramoth Services has come a long way handling complex projects on our own, hence we have not formed a JV with a foreign counterpart. When it comes to the construction of Tailings Storage Facilities, we are one of the most experienced players and our experience and track record speak to our advantage.
How did Ramoth Services face the pandemic?
The impact on our projects has been minimal compared to other industries. Because mining was exempted from forced shutdowns, the industry continuously worked without any operational restrictions. However, our cost base suffered because we had to budget for unplanned Personal Protective Equipment and shift replacements to avoid exposure to the virus.
What is a particular challenge of constructing tailings dams in Ghana?
The construction of tailings dams is very capital intensive, requiring heavy equipment as well as fuel. Finding the capital required is difficult. Ghana has a relatively higher borrowing interest rate compared to the world market. Limited access to capital and cost of borrowing poses the biggest challenge we need to fight against compared to our multinational peers.
What opportunities for expansion do you see outside of Ghana?
Ghana is surrounded by countries with mining opportunities. These include Ivory Coast, Burkina Faso and Guinea. We want to expand, but we will do this in a reasonable way so that the advantages outweigh the challenges. The main challenge has been transportation of heavy equipment across borders.
What are the main growth drivers for Ramoth Services, as for the mining industry, in the next few years?
In Ghana I feel exploration is limited, and I get the feeling that the country is satisfied with the mines already in operation. I am fearful for the future of the Ghanaian industry since the mines are exhausting their deposits. Ghana should increase exploration investment to pave way for new mines springing up in the future
Ramoth is looking to expand into new jurisdictions. Our long-term ambition is to leverage the domestic opportunities and then expand quickly into neighbouring countries.
Do you have a final message for our audience?
Ghana is a beautiful place with a friendly business environment, stable governance, and outstanding in-country expertise. We invite investors to come to Ghana. Ramoth Services is open to discussing opportunities to merge our capabilities and exchange our expertise on specific projects. Together, we can contribute to the development of the mining industry in the country.