Mr. Kwame Addo-Kufuor, President of
the Ghana Chamber of Mines, is optimistic that gold output from producing
member-companies will increase by some 400,000 ounces this year.
He told the B&FT that gold output
is expected to increase from 2.4 million ounces recorded in 2016 to 2.8 million
ounces in 2017, as planned investment projects are expected to boost
production.
“The producing member-companies of
the Chamber will continue to invest in their operations to ensure a sustainable
mining sector. Planned projects of member companies are expected to have
significant impacts. These investments are expected to translate into growth in
production in the ensuing years,” he said.
Mr. Addo-Kufuor, who was speaking
during a courtesy call on the Minister of Lands and Natural Resource--John
Peter Amewu—by the executives of the Chamber of Mines, confirmed that investments
planned in the short to medium-term include: Subika Underground, Ahafo North, Ahafo
Mill Expansion, Goldfields Tarkwa and Daamang Mine, Esaase Phase II development
at Asanko, and the turnaround of Obuasi.
These projects, costing billions of
dollars, is expected to grow the industry and support Ghana’s position as a
major gold producer.
Underscoring the Chamber’s readiness
to collaborate with the government to roll out initiatives that would be
mutually beneficial to the country and the mining industry, Mr. Addo-Kufuor said
there were many opportunities in the mining industry and minerals value-chain
to create a viable and competitive industrial sector.
“We believe that there is more scope
for accelerated economic development on the back of the minerals and mining
industry,” he said.
The mining industry has been the
leading contributor to the nation’s fiscal purse, except in 2015. Its
contribution to direct domestic revenue improved from GH¢ 1.3 billion in 2015
to GH¢ 1.6 billion in 2016, representing a growth rate of 23 percent.
“Aside from its significant role in
improving the balance of payments position, particularly in the context of an International
Monetary Fund (IMF) Extended Credit Facility Programme, it is also worth noting
that it was a major contributory factor for the deceleration in the
depreciation of the local currency relative to other traded currencies,” Mr.
Addo-Kufuor said.
Regarding, corporate social
investment projects, producing member-companies of the Chamber invested US$
17.09 million in 2015 in a variety of projects which are potent and strategic
tools for complementing the government’s efforts to accelerate development in
mining areas and improve the well-being of the community members.
“It must be emphasized that most of
these projects resulted in job creation. For instance, Golden Star Bogoso
Prestea Limited outsourced the hauling of its ore from the pit to the mill to a
consortium of local vendors, a contract worth US$2.8 million in 2015.
AngloGold Ashanti’s flagship CSI
project, Malaria Control Programme, did not only significantly reduce morbidity
associated with the malaria causing vector but was also replicated nationally
with outstanding results.
Gold Fields Ghana Foundation provides
support to teachers in its catchment area to improve the outcomes of teaching
and learning.
Similarly, Newmont Ahafo Development
Foundation constructed a fully-furnished library for the people of Susuanso.
Both the Ahafo and Akyem foundations are seen as world class social impact
initiatives which have significantly improved livelihoods in the respective
communities
Furthermore, Perseus Mining (Ghana)
Ltd. handed over a US$ 30 million resettlement project to a community in its
catchment area. As well, Chirano Gold
Mines continues to contribute to the improvement of health outcomes in its
operational area through the Malaria Control Programme,” he said.
Observing that the proportion of
funds that is injected into mining communities for development, Mr. Addo-Kufuor
said the phenomenon is the result of poor infrastructure development in mining
communities, despite their contribution to the national income.
He described the situation as
disappointing, since mining companies pay the right amount of revenue to
government to help improve mining communities.
“In 2016, mining companies paid
mineral royalty in the amount of GH¢550 million to the government. But the
proportion of the total mineral royalty which goes directly to the 14 District
Assemblies in whose jurisdiction mining takes place represents only 4.95
percent of mineral royalty payments.
This implies that only GH¢27 million
is expected to be returned to district assemblies for development. This amount
is woefully inadequate for the stimulation of infrastructural development in
the mining communities,” he said.
He pledged the Chamber’s support for
the new Minister to enable him implement policies and programmes to speed-up
the growth and development of the mining sector.
On his part, Mr. Amewu expressed government’s
commitment to addressing holistically the menace of illegal mining.
“Mining in the forest and in water
bodies must be stopped. We will take the fight to the illegal miners. We,
therefore, need the Chamber’s collaboration,” he said.
Mr. Amewu said government policies in
the mining sector are geared towards enhancing growth and expressed the hope
that by working together the country could achieve the benefits from the
sector.
“We can achieve the benefits of the
mining industry if we work hand-in-hand with the mining firms. My doors are
opened for your suggestions,” he said.
