Chamber of Mines seeks 'creative ways' to support local players financially

Local participants in the mining sector will soon benefit from funding support aimed at improving their competitiveness, the CEO of Ghana Chamber of Mines, Sulemanu Koney has said.

According to the CEO’s message in the Chamber’s 2019 Annual Report, he indicated that the annual Local Content engagement was successfully held last year.

“The discussions were both positive and stimulating with a defining conclusion to explore creative ways to provide funds to support local participants in the mining supply chain as a means of improving their competitiveness.

“With the local content portal on the Chamber’s website, we have created useful resources to guide interested investors to identify opportunities in the mining value chain that can stimulate economic growth” he noted.

Furthermore, he added that the Secretariat held series of interactions with stakeholders on ways by which local refineries can refine ore for the industry in line with acceptable international certifications.

“Gold Coast refinery continues to be a part of the stakeholders and it would be a shot in the arm of the mining industry and Ghana as a whole if a local refinery is able to acquire the requisite certification” he said.

Mining companies, under the year in review, undertook various social investments in deprived communities across the country.

Such projects include the funding of a mechanized water system for the Ullo Senior High School in the Jirapa District of the Upper West Region; the provision of medical equipment to the Bimbilla Government Hospital; support for the National House Chiefs; to the provision of electricity for the people of Kwame Aninkrom in the Sefwi Wiawso Municipality through the patronage of the Nexans Foundation, the chamber augmented the social support services rendered to host communities by member companies.

“With the establishment of the Minerals Development Fund Secretariat as well as the inauguration of its board, we look forward to an expansive spate of development in mining communities to support livelihoods and the local economies,” he said.

He added that as the world confronts the Covid-19 pandemic, the chamber will endeavour to leverage key partnerships within and without the industry in order to surmount the adverse effects of the scourge in the country and industry.

The outlook of price in 2020 remains bullish as the coronavirus induced global health pandemic is expected to provide tailwinds for year-on-year growth in the yellow metal’s price.

Data from the Ghana Revenue Authority (GRA) showed that the mining sector’s total fiscal contribution, at 7.7 percent of domestic revenue in 2019, was the second-highest after the financial and insurance sectors.

This notwithstanding, the share of the mining and quarrying sector in total direct domestic receipts mobilized by the GRA improved by 70 percent from GH¢2.36 bn in 2018 to GH¢4.02 bn in 2019. This growth was occasioned by the simultaneous increase in production and price of some minerals, particularly, gold.

Likewise, the expiration of the Stability Agreements between the Government of Ghana and some mining companies further resulted in changes that boosted revenue for the State, the Chamber’s report revealed.