Friday, March 18, 2011

More mining contracts to locals now

New regulations have been finalised to boost participation of local contractors in the mining sector, Lands and Natural Resources Minister, Mike Hammah, has announced.

These regulations, which constitute subsidiary legislations, are targetted at giving effect to the new policy on local content introduced by the government to enhance the development of Ghanaian enterprises - by confining the provision of specific products and services in the mining sector exclusively to local contractors.

The Minister explained that the new regulations will also assist regulatory agencies in the mining sector by enhancing their capacities to prosecute their mandate more effectively.

In furtherance of this policy, he said, the Ghana Chamber of Mines is working closely with World Bank experts to develop arrangements that will compel mining companies operating in the country to award contracts for the supply of some 28 products and services exclusively to local contractors.

Apart from creating jobs and economic opportunities for locals, this is an effort to enhance the outcome of mining operations on indigenous populations - a vexed issue that has been a source of strife between inhabitants of mining communities and mining companies.

Mr. Hammah disclosed this at a meeting with officials of Golden Star Resources Limited (GSRL), a Bogoso-based Canadian mining firm with substantial Ghanaian holdings led by Daniel Owiredu, Vice-President Operations, Ghana.

The GSRL team had called on the Minister to formally introduce the company to him, following assumption of his new role as sector-head.

The strong push for local content and participation in mining is part of work under the Mining Sector Support Programme, a Ghanaian government initiative that is being sponsored by the European Union.

Other activities being carried out under the programme include an environmental-impact and national strategic assessment of large-scale mining operations over the years in order to find ways of maximising benefits and mitigating adverse consequences.

Mr. Hammah affirmed the government’s commitment to shore-up the mining sector to become a major contributor to the national economy through the promotion of value-addition as a vehicle to create a vibrant downstream industry with effective linkages to other economic sectors.

Speaking on his company’s operations, Mr. Owiredu reported that Golden Star had spent over US$50million on care and maintenance, mine rehabilitation and the training of over 150 newly-recruited employees in preparation for the re-opening of the Prestea underground mine.

He entreated the Minister to expedite arrangements for the issuance of a licence to allow the company commence operations on the Prestea South gold project.

The licencing process has been stalled by the company’s inability to hold a public hearing on issues regarding the concession because of protestations by the community people against the commencement of operations on the land.

Mr. Hammah, who warmly received the appeal, expressed the hope that mining companies will continue to operate within the confines of the law - in a way that deepens the good relations between government and the industry, and facilitates the attainment of sector objectives.

Source:B&FT

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