Dr. Sulemanu Koney, the Chief Executive Officer of the Ghana Chamber of Mines (GCM), has disclosed that the Chamber has resorted to the Ghana Stock Exchange (GSE) to raise capital for its member countries.

Chief Executive Officer of the GCM, Dr Sulemanu Koney, who disclosed this at a media workshop on the performance of the mining industry, iterated that the “GCM is in discussions with the GSE to that effect.”

“It is in the medium-term facilitating for member companies to raise capital from the Ghana Stock Exchange (GSE) to fund exploration activities in the country.”
Dr. Sulemanu Koney

Although, Dr Koney, did not give further details on the arrangement, he averred that it is important to raise financial resources locally to fund mining exploration in a bid to promote local ownership in the mining industry.

“Exploration is an important activity in the mining industry since it is through that programme that new mineral resources are found. Exploration helped to discover a steady stream of ore body for mining.”
Dr. Sulemanu Koney

Fiscal Exploration Regime not Conducive

Dr. Koney asserted that the current fiscal exploration regime is not conducive to attracting exploration investment. To this end, Dr Koney entreated the government to abolish taxes, such as Value Added Tax, National Health Insurance Levy, GETFund Levy and COVID-Levy to make exploration attractive to investors.

The CEO said the GCM would continue to advocate and dialogue with the government for taxes on exploration to be scrapped. He noted that the imposition of taxes on big-ticket projects such as assaying and drilling are stifling the industry of cash for exploration.

Dr. Koney disclosed that in 2021, the mining industry spent GH¢4,809,006 as tax expenditure on assay and drilling services.

“This tax expenditures could have been reinvested in exploration if the government were to relieve exploration firms from the payment of these import tax upon major services.”
Dr. Sulemanu Koney

The CEO stressed that in some jurisdictions in Africa incentives are given for exploration to enable mining companies explore for more mineral resources.

Dr. Koney called for a review of landholding costs in Ghana to make the country attractive to more exploration investment, saying the government “must exempt exploration companies from the payment of annual mineral right fees. Burkina Faso do not take environmental fees and Ghana could pursue same”.

On measures to position Ghana as the hub of mining support services in West Africa, he said the GCM has commissioned a study to that effect. He noted that the exercise “Was an important step towards competitive advantage.”

Dr. Koney noted that the Chamber has contracted the University of Mines and Technology to undertake a study on the linkages between the minerals and non-mining sectors. He noted that the objective of the GCM was to promote the mining industry as a catalyst for development.

On the security of Mines, Dr Koney disclosed that the GCM is in discussion with the government to provide security at the mines following the withdrawal of soldiers at the mines.