PMMC wants unlicenced foreigners out

Mr. Reuben Darko Damptey, Managing Director of the Precious Minerals Marketing Company (PMMC), says the gold business is infiltrated by unlicenced foreigners who are competing with the company in marketing the mineral.

He said these foreigners also purchase gold from small-scale miners and export themselves through other licenced exporters. He described the act as unfair competition, and dubious, as these unlicenced foreigners do not operate under any regulations and therefore deploy many means to export minerals.

The MD was speaking on a familiarisation tour visit by the sector minister, Alhaji Inusah Fuseini, to the PMMC, which is under his jurisdiction.

As a third-party shipper, the company exports gold on behalf of third parties for a commission, Mr. Damptey said – explaining that individuals and local buying agents by policy can export their gold to any destination through PMMC for an approved charge of 0.05 percent of total value of gold to be exported.

“If this is done, it will promote better monitoring and ensure full repatriation of foreign exchange and avoid any tendency for money laundering. It will also weed-out bad operators whose licences may be revoked.”

He said the major challenge with jewellery production is acquisition of modern machines to reduce the manual process, enhance time delivery, and improve production of small products to meet the pockets of the average worker.

In addition, he said attainment of international quality control standards is also a challenge for the company.

Mr. Damptey said PMMC’s management is holding discussions with the Minerals Commission and Technical Director for mines at the sector ministry, impressing upon them to grant more mining concessions to small-scale operators as a way of assisting them to boost production.

“Management is in consultation with donors and the Diamond Development Institute to assist miners with equipment on leasing basis to minimise the high diamond production costs, which affects pricing.”

He appealed to government for support as finance is a major constraint, saying the gold business depends on readily available cash and the London Market Exchange prices are very unstable. He said the cost of capital is very high as the company has to source for its own funds, with very high interest rates on bank overdrafts.

PMMC’s export earnings are repatriated 100 percent into the country, and over the years the company has recorded a significant increase in foreign exchange inflows to the economy. From 2007 to 2012, the company generated US$1.6 billion.

The minister assured them of his commitment to support their operations and asked management of PMMC to create a good environment that will enable them achieve their targets.

He said when unlicensed foreigners are allowed to operate in the industry it undermines the very reason why PMMC was established, that is to buy minerals from small-scale miners for processing and export.

“The problem of people (unlicensed foreigners) operating without paying tax is a reason why PMMC should be allowed to regulate the industry. The only way we can build this country is through taxes, so it will not help the country if we deprive ourselves of taxes.”

The country currently produces about 500,000 carats of diamonds annually. This is made up of 90 percent industrial diamonds and 10 percent gems.