Expert outlines extractive sector challenges

Poor extractive sector policy implementation, lack of adequate infrastructure, specialised skills and technology are some of the numerous challenges hindering resource-rich developing nations - including Ghana - from transforming their resource wealth into value addition projects, an Australian-based Mining Executive - Mr. Henry Antwi - has outlined.

 

“Developing countries including Ghana continue to face challenges in managing the exploitation of their resources by being unable to transform their resource wealth into value addition projects to promote sustained development and create jobs.”

Mr. Antwi, who is also a Technical and Commercial Advisor for a government-owned mining firm in Oman and a Fellow of the Australasian Institute of Mining and Metallurgy, said this at a lecture organised by the West African Institute of Mining, Mineral and Petroleum (WAIMM) in Accra that was well-attended by a number of dignitaries: including  Lawyer Sam Okudjeto, a member of the Council of State; Mrs. Amma Adomaa Twum-Amoah, Ghana’s Ambassador designate to Ethiopia; Mr. Sulemanu Koney, CEO of Ghana Chamber of Mines; and Mrs. Georgette Barnes, President of Accra Mining Network among others.

Speaking under the topic ‘Developing Resource Based Industrialisation to Drive Economic Growth in Ghana’, Mr. Antwi expressed the need to implement policies that are competitive on a global scale, fair and equitable to both government and citizens as adequate compensation for the development and extraction of the country’s mineral assets.

He indicated that the deduction of exploration expenses, minimisation of administrative bureaucracies and removal of political influences in the granting of mining licences are ways to encourage investment in the extractives industry.

“Although Ghana is ranked high based on its mineral potential, the nation is perceived to rank lower in terms of policies. This necessitates the need to implement policies that will attract investment into the country.”

Mr. Antwi proposed that the country’s high total taxes need to be compared with other resource-rich nations to enable it attract investors into the extractive sector. “We need to align our policies and mineral resources inventory information through benchmarking with other resource-rich countries with recognised statutory reporting codes such as JORC, N143-101 and SAMREC.”

He encouraged government officials, mining engineers, geoscientists, banking sector representatives, Mineral Commission executives and media representatives present at the lecture to play their part in channeling the nation’s vast expertise in mining to drive this initiative and influence policy changes.

He indicated the need to identify areas along the value chain with increased potential of value addition in the extractive sector to promote sustainable development and increase job-creation.

The chairman for the function, Dr. Peter Amponsah-Mensah-Executive Director of Pamicor, called for policy implementation Centres to reposition themselves to make the Ghana Minerals and Mining Policy launched in 2014 meaningful.

He proposed an immediate restructuring of the Minerals Commission and its affiliates to ensure diversification of the nation’s mineral production base, in order to promote more sustainable growth of the national economy.

Professor Kwaku Appiah Adu of the Vice-President’s office explained the development strategy of the integrated Bauxite and Aluminum Development Project, which is aimed at diversifying the mineral base to create more jobs and wealth for the country.