‘Ensure good balance to remain attractive’

Government must strike a good balance to ensure that the mining industry continues to remain attractive, says Mr. Robert Trzebski, Executive Officer of Austmine -- the largest private sector grouping of mining services providers in Australia.

 “You really have to be careful, because will Ghana still remain attractive to mining companies after imposing the taxes,” he said -- adding that Australia is not as attractive as it used to be about three years ago in mining, after increasing mining taxes to about 10 percent.” 

Mr. Trzebski made this observation in Accra during a 12-member Australian Mining delegation visited Ghana to explore various opportunities in the country’s mining sector.

The delegation, made up of representatives from equipment and service providing companies in Australia, offers high-tech solutions for mining support. While some of the equipment and solutions make crushers more efficient, there are chemicals that enhance the amount and value of gold extracted.

He explained: “Mining is getting more expensive; the costs are rising and the commodity prices are not rising as much. Mining companies around the world -- in Australia, Ghana, Khazikstan or Russia need to think about new and smart solutions to increase productivity.” 

He cautioned Ghana against introducing taxes and levies on the mining industry, as that will place further financial burdens on the industry and make the country less attractive in mining. 

“While the cost of mining is rising globally due to many factors including power costs and high labour costs, the prices of commodities are not rising as much. Therefore, such taxes and levies will further burden the industry and make it less attractive.”

The government has raised taxes on mining companies from 25 percent to 35 percent after the industry enjoyed a windfall when global prices increased. The windfall tax of 10 percent on mining concerns also announced in the 2012 Budget is yet to be implemented. 

He indicated that Austmine has the capacity to provide solutions to improve mining in the light of rising cost amidst lowering prices. So, around the world mining companies are thinking of smart ways of improving their productivity.

Mr. Trzebski observed that the ore grade across the world is getting lesser -- a situation that calls for high-end technology, such as provided by Austmine members, to make mining remain sustainable and profitable.

The delegation, he said, has engaged with some mining companies and local authorities on the benefits their investment in Ghana will mean for the industry.

Their two-day visit in the country took the team to some mining communities, local authorities and mining companies to learn and understand what they do and appreciate at first-hand the needs of the mining industry in Ghana and how their solutions can help boost productivity in the industry.