Nation does not have standards for grinding media for miners –GSA

Ghana is yet to have standards for local production and monitoring of Grinding Media, a crushing material widely used in the mining industry, a senior member of the Ghana Standards Authority (GSA), Mr. Charles Amoako has said. 

“Ghana does not have standards for this grinding media as at now. There are other available international standards that are obtained from the market,” he said

Mr. Amoako said this on behalf of the Chief Executive of the Authority, Prof. Alex Dodoo, at a one-day workshop in Tema organised by the Ghana Chamber of Mines (GCM) for stakeholders in the sector.
The workshop brought together various players within the manufacturing and local mining suppliers sector, and was aimed at helping to improve the procurement of locally manufactured grinding media for the mining industry and other industries in the country.

It was under the theme ‘The promotion of an enabling environment for the local manufacturing of the grinding media: Local content drive of the mining industry’. 

Grinding Media is a heavy metal used to crush or grind material into a powder form – cement mineral – in a mill. Grinding Media is widely used in production lines for powders such as cement, silicates, refractory material, fertiliser, glass ceramics etc., as well as for ore-dressing of both ferrous and non-ferrous metals – especially in the mining and metals industries.

Some of the most common types include ball mills, pellet mills, hammer mills, and disk mills. One of the most common types of grinding mill is a ball mill. This machine is typically used to grind material into powder. Some of the common grinding mediums used in the ball mill include stainless steel balls, ceramic balls, and flint pebbles.

Mr. Amoako explained that a Memorandum of Understanding (MoU) between the Chamber and the Authority have been signed at top management level to ensure enactment of appropriate standards to monitor the local production of grinding media for the country’s mining sector.

“Presently, we have signed an MoU with the Chamber of Mines and these are some of the activities that we want to put under the agreement. We need to as a matter of urgency have all these standards which affect your industry in place as soon as practicable,” Mr. Amoako stated.

The Chamber of Mines is seriously pushing the manufacturing sector to understand the procurement list the mining industry requires and make sure they are equipped to supply items on the list.

Currently, the Local Procurement List has 19 items, and they include Grinding Media and others such as Cement & Cement Products/Grout, Quick & Hydrated Lime, Electrical Cables, (PVC) Pipes, General Lubricants, Plastic Sample Bags, Calico Bags, Bullion Boxes, Conveyor Rollers, Metal/PVC Core Trays, Overalls & Working Cloths, High Density Polyethylene & polyvinyl Chloride, Chain Link Fencing/Wire Netting/Barbed Wire, and Haulage Services & Catering Services among others.

Mr. Sulemanu Koney, Chief Executive Officer of the Chamber, said: “Our attention has been drawn to the fact that while there are different grinding media sizes used in the mining industry, the nature of ore it reduces dictates the production process and chemical composition of the balls as well. It is our expectation that we will have opportunity to discuss these issues in some detail.

“The Chamber is also aware of issues around the cost of electric power, which is a major challenge for manufacturers of grinding media.  While the cost of power has seen a decline in recent times, it is our expectation that as the indigenous gas component of the energy mix increases we should witness a further decline in power tariffs to generic industry so as to make firms more competitive.”

Available statistics from the Minerals Commission indicate that of the US$60.6million worth of grinding media demanded by the mining industry in 2016, only US$25.6million was produced locally.

This therefore means that the mining industry provides a manufacturing opportunity of US$35million worth of grinding media to be produced locally.

This development has pushed the Chamber to begin proceedings to set up a technical team that will harmonise various specifications to arrive at national standards for grinding media.

Mr. Koney said that the mining industry having the potential to provide more value beyond the substantial payments it makes to government is not lost on the Chamber.

It is instructive to note that in the last six years, except in 2014, the Ghana Revenue Authority indentifed the mining industry as the leading contributor to domestic tax collections.

For instance, in 2017 the mining industry paid GH¢32.16billion to the GRA – representing 16.3% of domestic tax revenue and an increase of 31% over what the Authority mobilised in 2016.

Citing a study initiated by the Chamber a few years ago that captured the catalytic role of the mining industry, Mr. Koney said: “Most value added is supported directly by the mining companies; most jobs are actually supported in their value chain through supplier expenditures and the re-spending of salaries.

“On average, the sampled mining companies employ annually about 7,000 people directly while in total about 111,000 jobs are supported. This means that for each job at the mine site an additional 15 jobs are supported in the wider economy.  Comparing this to local procurement, it means that for each US$1million of local procurement about 105 jobs are supported.”

He added: “The sample of seven mines directly contributed US$796million to the Ghanaian economy in 2013.  Once the indirect impact of the mines expenditures on goods and services in the supply chain is taken into account, this figure rises to US$1,556million.

“If local procurement is increased by 25%, value added to Ghana’s economy will increase by US$50million.”

The procurement of locally produced heavy-duty electric cables by mining companies increased from US$172,698.22 in 2014 to US$488,999.66 in 2015 an improvement of US$316,301.44 in 2016 representing an increase of 183%, he said.

He mentioned that standards are a critical tool for effective marketing. At the least, they give consumers emotional assurance that the product is fit for purpose.

“Mining companies have good reasons to support the procurement of locally manufactured inputs. While these may not be altruistic, the business case is paramount.”

Mr. Koney noted that having reputable companies manufacturing and supplying good quality inputs will give mining companies the necessary peace of mind. It will obviate the need for them to keep stock, thereby improving their cashflow and reducing their working capital.

As an industry that is essentially a price-taker – an output whose price a commodity, such as gold, whose price is externally determined – any endeavour that improves efficiency, productivity and costs will come in handy.

However, the challenges of poor or inconsistent quality, delays in delivery of inputs produced locally are banes which need to be addressed.

“It is our considered view that having a Ghana Standards Authority logo embossed will provide a vote of confidence in the quality of these inputs.  It will help deepen supply of locally manufactured goods into the supply chain of the mining industry, both in Ghana and the sub-region.”

He commended West African Forgings (WAFOR) for leveraging its supply of locally manufactured grinding media into West Africa. “It is our expectation that a Ghana Standards Authority logo will improve your business,” Mr. Koney stated.

Pirating tax stamp is a crime - GRA

The Chief Revenue Officer at Ghana Revenue Authority (GRA), Kwabena Apau Anto, has said it is a crime for businesses to pirate tax stamps on fake products.

“The Authority is investigating a number of such cases, and we have even made some arrests. We want to make sure that such people are arrested and brought to book to allow genuine products manufacturers to operate in the country.

Some businesses and individuals acquire tax stamps from the Authority genuinely, and then affix them on another company’s products. “That is what most people are doing. All that they do is pirate other people’s products,” said Mr. Anto, after GRA’s tax stamp taskforce visited some selected retail shops in Accra to inspect stamps on consumable products. 

The exercise was aimed at ensuring that retailers comply with the law and sell consumable products with the approved tax stamps from the Authority. Some consumable products without the tax stamp were confiscated.

Some of the affected shops include the De-Latoya Enterprise in Osu, Voltic Retail Centre and N.J. Ventures - both in Achimota, and the Gbawe Depot of Accra Breweries Ltd., which had several beverages and bottled water.

Mr. Anto warned that shop owners selling products without tax stamps will be dealt with drastically.

He cautioned retailers, wholesalers, distributors not to take any product from any manufacturers without the stamps, because the law places a duty on them to sell only products with the tax stamps.

“We have given stamps to all suppliers,” adding that penalties of up to 300% of the products’ value will be imposed on defaulters - who may also face a sentence of five years.

He indicated that GRA will continue to visit the markets to ensure strict compliance with the law, and that importers are also expected to affix the stamps on their products.

“The Exercise is simultaneously ongoing in all 10 regions of the country, and we want to tell the retailers, distributors and wholesalers to compel manufacturers and importers to affix the stamps on their products,” Mr. Anto stated.

Mr. Anto explained that the manufacturing companies had received enough of the Tax Stamps from the Authority, and are supposed to distribute them to the various wholesalers and retailers to be affix on the old products.

“We even made announcements that anybody who has old stock should apply to our office indicating the kind of products and the number, then we will come and verify and give you the Tax Stamps free to affix on them.” 

He therefore warned dealers in excisable products against accepting those that have no Tax Stamp on them from their distributers, and warned them: “When we come back to see such products, you will be arrested and prosecuted according to the law”.

The Tax Stamp Policy, which emanates from the Excise Stamp Act passed by Parliament in 2013, Act 873, prescribes that all alcoholic and non-alcoholic carbonated beverages, bottled water, cigarettes and other tobacco products are embossed with the Tax Stamp before being released to the market or sold to customers.

The Excise Tax Stamp is a specifically designed stamp with digital and other security features, which is supposed to be affixed on specified excisable products produced locally or imported, to provide enough guarantee of product authenticity as well as show that taxes and duties have been paid or will be paid.

This is to control the importation and local production of excisable goods for revenue purposes; check the illicit trading, smuggling and counterfeiting of excisable products; check under-declaration of goods; and protect and increase revenue mobilisation for national development.

To ensure this, a deadline of six months was given to all distributers, wholesalers and retailers, starting on March 1, 2018, to have the Tax Stamp affixed on their products.

Duty Free Shops to pay duty and apply for refund

Effective December 1, 2018, all Duty-Free shops in the country will be mandated to pay Customs duty and taxes at the time of importation of goods and apply for refund, to help check the dumping of goods meant for duty-free shops on the market.

“We also want to state that the operations of all Duty-Free shops are going to be subjected to comprehensive audit,” said the Commissioner General of Ghana Revenue Authority (GRA), Mr. Emmanuel Kofi Nti. 

“We are determined to use all legitimate means to achieve the 2018 revenue target, and we will remove all obstacles militating against this objective,” he told the press after the authority arrested four persons for diverting goods worth GH¢139,359.89 from a Free Zone Enclave meant for export to the Paga Duty Free shop in the Upper East Region.

Mr. Nti said such acts derail efforts at mobilising revenue, since those who divert such Free Zones goods bring them back to the main market to compete with others that paid taxes on their imports, and thus cheat the system.

The four suspects, according to GRA, were Samuel Kwame Agbah, a worker of Comet Ghana Limited; Seth Nyarko of Magnate Technology; John Tetteh, a driver of a truck with registration number GT 5160-12; and Daniel Owusu, a driver’s mate. 

Mr. Nti stated that goods made up of 2,000 cartons (12xIL) of Don Garcia Wine and 1,000 cartons of Simon Sangria Wine, attracting a duty liability of GH¢88,957.47, were removed from their warehouse located at the Tema Free Zone Enclave. The truck and its contents have been detained pending re-examination and proper reassessment. 

The GRA arrested the four on Friday night, upon intelligence that the consignment - released for export to Paga the previous day - had been diverted and was being discharged at Nungua. 

Mr. Nti explained that on November 6, 2018, a licenced Customs House Agent, acting on behalf of Comet Ghana Limited - a registered Free Zone Operator with no. F003 - lodged a declaration with number 92018485496 in the Ghana Customs Management System to export the consignment of wine to Paga.

However, the truck - which was mounted with E-Track Device with number 612788 obtained and allegedly fixed by technicians from Magnate Technology Limited and upon approval granted for export by Jonathan Aniewu, Officer-in-charge, Free Zones - was noted to have never reached Paga. 

Mr. Nti said when GRA’s surveillance team arrived at Nungua where the goods were being discharged, it was detected that the seal had been opened with its key; and so the Authority is investigating to discover the person who provided the key to the principal suspect, Samuel Agbah - who tried to bribe the officials with GH¢2,000 with a promise to add some more subsequently.

He said the suspects, who were first handed over to the Marine Police for interrogation and detention, will soon be put before court for prosecution.

He gave assurance that the manager of Comet Ghana Limited, who is yet to report to the GRA, will be located.

He indicated that a detailed examination of the GCNet system has revealed that from September 1, 2018 to date, Comet Limited has engaged in 39 exportations; and so these exportations will be subjected to further investigations to determine whether those goods indeed reached their destinations.

Comet happens to be one of the four registered Free Zones companies operating Duty-Free shops at various border posts across the country, including Osei Kojokrom, Elubo, Aflao, Gonokrom and Paga. 

In a press release signed by its Executive Secretary, Michael Okyere Baafi, the Ghana Free Zones Authority lauded the GRA for apprehending the four, pledging its support for policing the movement of goods within the Free Zone areas.

“The Ghana Free Zones Authority would like to state that it does not condone any illegal acts and will support the Customs Division of the GRA in carrying out its mandate of policing goods entering and exiting Free Zone areas,” the statement read.

The statement added that: “The Authority has taken some measures and steps, including contracting an independent consultancy to audit all licenced duty-free shops and household plastic manufacturing companies found to have violated the Free Zone Act 1995 (ACT504) and its supporting regulations”.

The authority, the statement said, wishes to state unequivocally that Free Zones Enterprises are generally compliant to the Free Zones regulations. 

“The Culpability of one Free Zone Company in wrongdoing should not provide justification for condemning the entire Free Zone scheme. The implementation of Free Zones policy has created a significant amount of direct and indirect employment, and has contributed immensely to the economy of Ghana.

“The Authority is therefore urging all its stakeholders to offer the authority the support needed to realise its mission of helping transform Ghana into the Gateway to West Africa.

“The Authority wishes to also assure all law-abiding Free Zones enterprises that the Ghana Free Zones Authority and its stakeholders will continue to create the conducive environment for their businesses to thrive,” the statement said.