Adnan Adams Mohammed
As government shows commitment towards reforms in the mining sector and deepening local content, all mining companies are expected to ensure that at least 60% of financial services including revenue from the sale of minerals go to the local Banks.
This is captured in the fifth edition of the new procurement list which now has 50 items for the provision of goods and services of which the Minerals Commission has commenced the implementation.
A statement, signed and issued last week by the MinCom said the increase in the items on the list comes at a time when receipts from mineral revenues and investments hover around US$ 10 billion. The local banks such as CBG, National Investment Bank, Ghana Commercial Bank and Agricultural Development Bank are likely to benefit greatly. The same applies to insurance services which also require a minimum of 60% of all insurance and reinsurance placements be made with insurance companies exclusively owned by Ghanaians.
“For instance, there are four huge new projects with an investment of about US$ 1.7 billion”, Chief Executive Officer of the Minerals Commission, Martin Kwaku Ayisi revealed. “The new projects are the US$ 850 million Ahafo North gold mine project by Newmont Ghana Gold Limited, US$ 500 million gold project currently under construction by Cardinal Namdini Mining limited in the Talensi District of the Upper East Region, the US$ 200 million gold mine to be constructed in the Upper West Region and the US$ 125 million lithium project at Ewoyaa in the Central Region”.
Additionally, Mr. Ayisi stated that some mines are undertaking expansion and redevelopment. The undergoing expansion includes the Ahafo South mine of Newmont which now covers the Subika underground. Golden Star Resources is spending about a billion dollars to expand the Wassa underground mine.
The mines being redeveloped are the Anglogold Ashanti Obuasi mine where a billion dollars has been expended and the Bibiani mine of Mensin Gold Ghana Limited which started production in the last quarter of 2022. The redevelopment of the Bibiani mine is over US$200 million dollars
“It is the expectation of the Minerals Commission that these investments will support the growth of the economy and boost local participation under the new procurement list.” MrAyisi added.
The new procurement list replaces the fourth edition of the procurement list which was published by the Commission in early 2022.
The Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) came into force on 22 December 2020.
The purpose of the regulations among others is to promote job creation using local expertise, goods and services in the mining industry and their retention in the country. The law is also to achieve the minimum in-country spending for goods and services and create mining and mineral-related industries that will sustain economic development.
Pursuant to Regulation 7 of L.I. 2431, the Commission is required to publish a local procurement list that stipulates the goods and services with Ghanaian content which are to be procured in the country. Regulation 7(3) of L.I. 2431 further states that the Commission shall review the procurement list annually.
Meanwhile, the Deputy Minister for Lands and Natural Resources, George MirekuDuker, says the government is determined to build a mining sector which is resilient and fortified enough to withstand the next global crisis.
Delivering the keynote address at the opening day of the West African Institute of Mining Metallurgy and Petroleum (WAIMM) Annual Industry Conference, last week, Hon Duker said the mining industry was not spared from the dire impact of the twin crisis of COVID-19 and Russia-Ukraine war.
He disclosed that the industry was badly hit but the government as part of its economic reform is introducing new policies that will lead to the creation of an economy that will be able to repel the shocks of the next global crisis.
According to the Deputy Minister, the mining industry has taken the lead in the reformation drive by promoting responsible and sustainable mining practices.
