President of the Ghana Chamber of Mines, Mr. Kwame
Addo-Kufuor, expects the price of gold to remain under pressure for most parts
of 2016.
This, he explained, will be largely due to the US
Federal Reserve Bank easing its quantitative monetary programme.
“Since this is likely to trigger a rise in interest
rates of near money assets, investors are likely to redirect their portfolio
away from gold.
Speaking at the miner’s annual general meeting in
Accra, Mr. Kufuor explained that fresh output from Asanko Mine and Golden Star
Wassa’s underground mine is expected to increase the gold industry’s output in
2016.
“All things being equal, in the same vein, the normalisation
of purchases by the prime client of the Ghana Manganese Company is expected to
increase the company’s shipments in 2016.”
Commenting on the activities of illegal miner’s in
concessions of certain large mines in the country which have become a serious
source of concern, Mr. Kufuor explained that the illegal mining activities have
resulted in some safety-related incidents, destruction of arable lands and
pollution to water-bodies, adding that government responded to this security
threat by setting up a National Security
Committee on Lands and Natural Resources as well as amending some portions of
the Minerals and Mining Act,2006 (Act 703).
These legal frameworks, together with other
initiatives by these agencies, he said, have been initiated to address the
scale of illegal mining across the country.
On the development of mining communities, he said,
communities tend to be in remote locations and lag behind in social and
economic infrastructure. “This has not been helped by the warped mechanism for
distributing mineral revenue, which tends to channel a large share of this
revenue to the Consolidated Fund -- thereby short-changing the very communities
who bear the brunt of our operations.
“On account of the crowded fiscal space, the spending
pattern of government does not necessarily accrue to the benefit of mining
communities. As a result, the standard
of living in such areas is relatively lower than non-mining areas, and therefore
paints negative picture of the mining industry.”
He indicated that while recognising that the sector-ministry
and Minerals Commission are working to address the poor developmental
conditions through the Minerals Development Fund Act, the Chamber urges that
the share of royalty ploughed into the communities should be increased from the
current rate of nine percent to 30 percent.
“Likewise, we urge government to promulgate a Mineral
Revenue Management Act - a law that will guide and ensure prudent management
and expenditure of mineral revenue returned to the communities.”
Commenting on policy issues in the mining sector, he
said the Chamber received support from the Ministry of Lands and Natural
Resources, Minerals Commission and other regulatory agencies - which went a
long way in assisting the achievement of targets this year.
“In particular we commend the new Minerals and Mining
Policy, which seeks to ensure that mining contributes to the structural
transformation of the economy by linking it with other sectors to catalyse
sustainable development. The Chamber will support government in the
implementation of this policy,” he said.
Mr. Addo-Kufuor indicated that the Chamber and its
members remain committed to the highest standards of health and safety in operations.
“This extends through to our host communities; in the fight against malaria,
for instance, the specific initiatives being undertaken have been extended to
the nation as a whole through various activities of the member-companies.”
He added: “The Chamber effectively provided
mining-related information to international and local institutions and
individuals as a way of improving its mutually advantageous collaboration with
civil society, academia, and the general public.
“The Chamber in 2015 continued to work assiduously in
promoting Ghana as the preferred mining jurisdiction to investors by
collaborating with government,” he remarked.
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