Lands Minister Outlines Vision for Ghana’s Mining Sector at 10th Ghana Mining Industry Awards
Hon. Samuel A. Jinapor, MP, the Minister for Lands and Natural Resources, has put forth three important recommendations that he believes, if implemented, will culminate in an improved relationship between the government and the Ghana Chamber of Mines, consequently resulting in great gains from the mining sector.
Delivering a Speech at the Tenth (10th) Ghana Mining Industry Awards, held at the Kempinski Hotel Gold Coast, Accra, on Friday, 22nd November 2024,the Minister outlined some of the major outcomes from the productive engagement between his outfit and the Ghana Chamber of Mines.
Extolling the outstanding relationship between him and the past three presidents of the Ghana Chamber of Mines, as well as its CEOs, Hon. Jinapor emphasized the importance of strong collaboration between the government and institutions to ensure the realization of the full benefits of the country’s extractive resources.
He believes that this collaboration between the Ghana Chamber of Mines and the Ministry under his watch has been the platform on which successes such as Ghana’s rise to becoming Africa’s leading gold producer were built.
“I pay glowing tribute to the Ghana Chamber of Mines for its support to the work of the Ministry, which has earned the sector its enviable status as a prime mover of the country. Since I had the privilege of serving as Minister for the mining sector, I have enjoyed the collaboration and cooperation of the Chamber, from its past Presidents; Mr. Eric Asuboteng and Mr. Joshua Mortoti, to the current President, Mr. Michael Edem Akafia, and especially its remarkable Chief Executive Officer, my good friend, Mr. Sulemanu Koney, and all executives and members of the Chamber. We have engaged actively and constructively, not only to optimize the benefits of the mining sector for Ghana, but to further refocus on positioning Ghana as the undisputed mining hub of Africa”, he stated.
“We have worked together, closely and in good faith, not only to overtake South Africa as the leading producer of gold on the continent, but we have consistently increased production, reaching some four million ounces (4,000,000 oz) last year. And with preliminary reports for the first half of this year showing production in excess of two million ounces (2,000,000 oz) from both large and small-scale mining, there is no doubt that we will exceed four million ounces (4,000,000 oz) this year”, he disclosed.
“Through our collaborative efforts, the mining sector has remained the pillar of our national economy with consistent growth in export receipts. Last year, as of August 2023, gold alone had contributed some Four point Six Seven Billion US Dollars (US$4,670,000,000) in export receipts. This year, for the first half of the year alone, export receipts from gold reached Five Billion US Dollars (US$5,000,000.00) with a projection to exceed Ten Billion United States Dollars (US$10,000,000,000.00) by the end of the year,” he added.
To ramp up this great relationship and ensure that Ghana continues to enjoy maximum benefits from its gold resources, the Lands Minister proposed three key actions that he hopes will be implemented.
“The next Government should take the issue of Value Added Tax (VAT) on exploration very seriously and work closely with the Chamber to find a way of dealing with this matter. This issue is very dear to us all, and indeed, to the Vice President of the Republic, Dr. Mahamudu Bawumia; for we are aware that exploration is the lifeblood of the mining industry, and, therefore, incentives must be given to encourage exploration. I led the Chamber to make a presentation to the Economic Management Team, and we were seriously working to review this VAT. Unfortunately, with the current situation in Parliament, it is unlikely that we can conclude this matter before the end of the year. I, therefore, strongly recommend that the next Minister takes this matter up, and it is my hope that the Chamber will collaborate with the next Minister to deal with this matter.
“Secondly, issues related to the Security of the Mines should never be compromised. The industry grows if industry players have the peace of mind to conduct their business without fear of being attacked. Again, this is a matter we prioritized, and trained special security forces for deployment to the Mines. I have also led the Chamber to make presentations to the Ministerial Committee of the National Security Council on this matter, and it is my hope that the next Government follows through on the agreed recommendations to ensure adequate security for the mines.
“Thirdly and finally, the Chamber and its members should pay particular attention to the development of mining communities where they operate. This is closely linked with the security of the mines. If the local community is happy, the mines would definitely be safe. Let us, therefore, work together to promote the development of mining communities, while also supporting the Government’s efforts at tackling illegal mining,” he concluded.
Hon. Jinapor also commended the award winners and companies for their meritorious work and assured that the government will continue to work with the Ghana Chamber of Mines to ensure that mining companies operate in an environment that guarantees the success of their investments.
He noted that as the government continues to intensify efforts towards the addition of value to Ghana’s mineral resources, a significant opportunity is being opened for investors to take advantage of and create massive wealth.
On his part, the Chief Executive Officer, Mr. Sulemanu Koney, paid glowing tribute to the Lands Minister for being a visionary and amiable leader who has, throughout his tenure as Minister, shown great commitment to the large-scale mining sector.
He noted that the extraordinary relationship and leadership shown by Hon. Jinapor is already bearing fruit, with gold production hitting impressive numbers.
The event saw mining companies and personalities beings awarded for their immense contributions to the mining industry in the year under review.
Hon. Jinapor presented an award to Anglogold Ashanti Iduapriem Mining Limited who won the biggest award on the night, the Mining Company of the Year.
