Mining supports economy with US$2.30b

Minerals and mining sector retained US$2.30 billion as revenue through the Bank of Ghana (BoG) during the year 2008, Chief Executive Officer of Ghana Chamber of Mines, Ms Joyce Aryee has revealed.

The figure which represents 63 percent of the mineral revenue out of its six percent was paid to government as royalties and taxes, whilst 10 percent was also paid to Volta River Authority (VRA) and Electricity Company of Ghana for electric power purchases.

The local oil marketing companies also received 13 percent for diesel fuel purchases. Also four percent of the minerals revenue was paid as taxes, levis and duties on fuel products to government.

Ms. Aryee speaking at the opening ceremony of the 2009 mining exhibition and networking forum of the Chamber organised under the theme ‘Mining And Sustainable Development: Meeting Intergenerational Challenges said: “ the mining industry has been increasing the quantum of local inputs in its operations for some time now.

In 2008, mineral producing member companies of the Chamber procured 47 cent of inputs and 71 percent of consumables locally.”

She indicated that the promotion of local content in the mining operations is not just a social responsibility activity, but also a direct response to the Minerals and Mining Law of 2006.

She noted that 98 percent of the workforce in Ghana’s mining industry is indigenes with only two percent being expatriates.

Ms Hanna Tetteh, Minister of Trade and Industry observed that the country is endowed with different kinds of natural resources which, if exploited efficiently, effectively and adequately can result in improvement in the lives of the people.

The country, specifically the mining communities, do not benefit fully from the enormous resources endowment.

This, she said, was as a result of high cost of specialised heavy duty equipment in the extractive industries involves the infusion of large capital which is always outside the reach of domestic and local investors.

She advised that the intergenerational challenges facing the mining sector need to be addressed to ensure sustainable development of the sector.

There is the need for all the stakeholders to help and address the challenges facing all the operations in the sector. This would include the government, foreign and local investors, banks, transport companies, opinion leaders, and advocacy groups.

“The development of the comprehensive local content framework for the mining sector is crucial and this will help reduce conflict, tension and dissatisfaction and ensure equity and fairness.

The local content policy should look at the activities in the mining sector and the various goods and services that go with them.” Ms Tetteh remarked.