US$4.5b revenue received from gold exports in 2014

 Ghana produced over 4.18 million ounces of gold resulting in export revenues of over US$4.5billion during the 2014 production year.

The mining sector contributed 16 percent of government revenue and contributed about 35 percent in terms of total merchandise exports in 2014. 

Nii Osah Mills, Minister of Lands and Natural Resources, at a press briefing in Accra said: “It is worthy of note that since 1991 the mining sector has been the single largest contributor to total merchandise export, with gold accounting for 95 percent of the mineral portfolio.” 

He mentioned that government is planning to introduce a policy to ensure that no bauxite leaves the country in its raw state, thus encouraging exporters to process the mineral into alumina or aluminum before exporting it out of the country.

The policy, he said, will be part of government’s efforts to add value to the country’s natural resources -- adding that minerals and metals are essential raw materials for industrialisation and also critical to the transformation of mining-dependent economies. 

“Indeed, when properly managed, mining has the potential to contribute significantly to sustainable development,” he said.

On mining sub-sector achievements, the minister said to mitigate the socio-economic impacts of mining on host communities, the ministry implemented Alternative Livelihood Programmes (ALP) in mining communities through the creation of non-mining jobs.

He said the ALPs aim to generate employment, stem the tide of rural urban migration, and reduce poverty as well as reduce the menace of illegal mining in those communities.

The project builds the capacity of small-scale miners to improve their efficiency, improve support to small-scale mining, and undertake geological exploration in various parts of the country to identify mineralisation areas for small-scale miners.

Nii Osah Mills said government regards small-scale mining as a legitimate business with a great potential for poverty reduction, and it still remains  the exclusive preserve of Ghanaians who hold licences obtained from and signed by the Minister of Lands and Natural Resources.

He said foreigners by law are not allowed to engage in small-scale mining in the country, and expressed the need to educate mining communities not to connive with them but rather expose them to the authorities.

Nii Osah-Mills disclosed that cabinet has already given approval for proposed amendments to the Minerals and Mining Act, 2006 (703).

“The proposed amendments will ensure strict liability for offences committed under the Minerals and Mining Act, 2006 (Act 703). The new provisions prescribe severe penalties for illegal mining,” he said.

The minister said the courts will accordingly be empowered to confiscate equipment used in illegal mining activities, as well as any minerals produced from such activities.

He explained that government recognises small-scale mining as a legitimate business and an exclusive preserve of Ghanaians who held licences obtained from and signed by the Minister of Lands and Natural Resources. “Foreigners, by law, are not allowed to engage in small-scale mining in Ghana,” he stated.