The country’s mineral exploration and mine
development over the last decade has attracted approximately US$2billion in Foreign
Direct Investment (FDI), representing over 56 percent of total FDI inflows into
the country’s economy.
In 2011, export revenues from the mineral sector
amounted to over US$5billion.
Currently, the sector contributes about 17.5 percent
of the country’s total corporate tax earnings, and 28.3 percent of government
revenue.
It also employs
28,000 people in the large-scale and mine support services industry, while over
1,000,000 people are engaged in the small gold, diamonds, sand-winning and
quarry industries.
Professor Bruce Banoeg-Yakubo, Chief Director at the
Ministry of Lands and Natural Resources, in an interview with B&FT
said: “The mining industry accounts
for about seven percent of the country’s GDP while mineral exports make up to
41 percent of total merchandise exports, and the sector is one of the largest
contributors to government revenue through the payment of mineral royalties,
employee income taxes and corporate taxes.”
He observed that the world over, there is a new
drive to ensure that natural resources become a key instrument for the growth
of economies.
“The mining sector has the ability to unlock
significant socioeconomic benefits, reduce poverty and support progress towards
the Millennium Development Goals (MDGs).”
Available data from the Ghana Chamber of Mines shows that mineral
revenue of mining companies rose from a little over US$3.7billion in 2010 to
about US$4.7billion in 2011.
The record increase in
mineral revenue was mainly as a result of soaring prices of gold and manganese
within the period, representing an increase of 28% -- primarily on account of
the increased price of gold and manganese in the period.
Gold prices rose from
US$1,219 per ounce in 2010 to US$1,583 per ounce in 2011.
Total investment inflows
into the sector increased from US$770million in 2010 to US$780million in 2011.
Gold production however fell
by 2% from 2,970,079 ounces in 2010 to 2,924,385 ounces in 2011.
The average aggregated cash cost was US$751
per ounce in 2011 compared with the US$684 recorded in 2010, an increase of
9.8%.
The mining companies used their repatriations
from the country -- equivalent to 75% of gross mineral revenue -- to settle
their statutory obligations in the form of corporate taxes, mineral royalties
and payments of emoluments to employees as well as payments for the supply of
local inputs for their operations.
Dr. Toni Aubynn, CEO of the Ghana
Chamber of Mines, has maintained that the mining industry’s enormous
contribution to social and economic growth should convince sceptics to rethink
their perceptions about the relevance of the industry as a catalyst for
development.
“To underscore its commitment to
society, the industry voluntarily contributed about US$44million last year to
its host communities and the general public to support causes that enhance
sustainable development,” he said.
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