Strong collaboration between gov’t and miners essential for local content

Dr. Toni Aubynn, Chief Executive of the Minerals Commission, says a strong collaboration between mining industry and government is an essential first-step for successful design and effective implementation of local content measures.

“A successful strategy expands the depth of local outsourcing, opens up opportunities for more local suppliers, creates jobs, promotes technology transfer through learning by doing, and offers opportunities for local management. For industry, it means reduced supply chain costs, shortened delivery times, and contributing to inclusive growth. For government, it means a broader tax and a diversified growth base.”

 Dr. Aubynn told key representatives of government, civil society organisations, mining communities and industry gathered in Accra to discuss the governance around local content policies for the country’s mining sector. 

 The dialogue, which was the third in a series of dialogues on Mining Governance and supported by the Australian government, was in partnership with the African Centre for Economic Transformation (ACET). 

The Australian High Commission’s First Secretary Development Cooperation, Ms Zabeta Moutafis, opening the event said the dialogue’s purpose was to bring together key stakeholders and policymakers to discuss and build consensus around the complex issues concerning local content in the extractives sector. 

 The extractives sector has a key role to play in transforming and developing Ghana into the future,” Ms Moutafis said. 

 With substantial expertise in both mining and development, Australia is well-placed to support African countries that wish to overcome the challenges and reap the benefits of a growing mining sector.

 The dialogue discussed issues such as: designing local content policies that balance the investment objectives of mining companies with national development goals; reconciling local content policies in mining with regional cooperation initiatives; and the promotion of domestic economic linkages while achieving trade competitiveness. 

Case-studies and a discussion paper were presented to the group by Dr. Aubynn and were followed by a discussion moderated by Mr. Benjamin Aryee, Mining Advisor from the Ministry of Land and Natural Resources. 

 Discussions highlighted both the challenges and opportunities presented by Ghana’s current framework on local content, with case studies presenting examples of best practices in the region and globally. 

The discussion looked at what tangible opportunities can be provided for local communities and businesses to buy into the mining value chain. 

Over 150 participants have been involved in the dialogue sessions to date, representing a wide range of stakeholders in Ghana. 

This final dialogue also included a discussion on options for establishing an ongoing, sustainable dialogue in the country to keep the dialogue and debate alive.