Lands Minister pledges close ties with large-scale mining firms

The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has underscored his strong commitment to work closely with large-scale mining companies to build a sustainable, viable mining industry.

“I intend to work closely with large-scale mining companies as partners to ensure we realise the vision of the President, which is to build here, in Ghana, a sustainable, viable, mutually beneficial mining industry,” he said at the presentation of a dummy cheque of GH₵120.7m by Gold Fields Ghana Ltd. as government’s dividend for the 2020 financial year.

According to him, the post-Covid economic recovery requires that all stakeholders support government so the country can rebound from the pandemic.

“It is very crucial to receive money for government around this time. This will support government’s economic recovery efforts at this time of the Covid-19 pandemic.”

Government has a 10 percent carried interest in all large-scale mining companies including Gold Fields, for which it receives dividends out of declared profits.

Gold Fields has three mining operations in the country, comprising Damang, Tarkwa and Asanko, which is a joint venture.

The Executive Vice President and Head of Gold Fields West Africa, Alfred Baku, said the company will continue to meet its obligations to government despite the challenges facing the mining sector.

He said Gold Fields makes a significant contribution to Ghana’s economy not only by way of paying taxes, dividends and royalties, but also through offering direct and indirect employment to thousands of people.

He pledged the company’s firm commitment to all its stakeholders, including government, communities, employees, and investors.

The mining sector is estimated to contribute 37 percent of export revenues and 19 percent of all direct tax payments in Ghana. Gold is the most commercially exploited mineral in the country, accounting for about 95 percent of mineral revenue.