In his first Public message to the Ghana Chamber of Mines in 2024, the Minister for Lands and Natural Resources, Honorable Samuel Abu Jinapor, revealed the intensification of government measures towards the protection of large-scale mining concessions in the country.
Addressing members of the Chamber of Mines during a meeting on Wednesday, 17 January 2024, the Lands Minister observed that the government and the Ghana Chamber of Mines managed to chalk significant successes together last year and that 2024 presents an opportunity to enhance joint efforts aimed at creating the environment necessary for the smooth and productive operations of the large-scale mining companies.
According to the Member of Parliament for Damango in the Savannah Region, his outfit would pursue collaborations between the government and the Ghana Chamber of Mines towards the actualization of the diversification and value addition policies being executed by government.
Reflecting on lessons from the previous year, Honorable Jinapor identified galamsey which is considered as the encroachment of concessions of large scale mining companies and fiscal issues as the main challenges which could be tackled with the utmost collaborations between the Ghana Chamber of Mines and government of Ghana.
The Land and Natural Resources Minister commenting on the issues regarding the activities of illegal mining in the country, commended the Ghana Chamber of Mines for their $300,000 donation for repair works on three aircrafts of the Ghana Air Forces and assured them that the Ministry will raise the funds necessary for the complete restoration of those aircrafts to enable them contribute to the fight against illegal mining.
“What I can assure you is that Government is fully committed to providing adequate security for your concessions. Because it is when your concessions are safe that you can work in peace to support Government. So, whatever we need to do to ensure that your concessions are safe, we will do it.
“And in this regard, I will continue to count on the leadership of the Chamber. If there are specific or special cases we need to deal with let us know and we will take the necessary steps to deal with them”.
Samuel Abu Jinapor
Government To Conclude On Fiscal Policy Measures For Chamber Of Mines
Moreover, the Minister of Land Natural Resources, Samuel Abu Jinapor indicated that his ministry is very committed to continue its engagement among various stakeholders to ensure that a mutually satisfying conclusion is reached on the fiscal measures for members of the Ghana Chamber of Mines.
He outlined some of the actions taken by his outfit to address the various issue and disclosed that the government Economic Management Team is very aware of the concern of the companies over the VAT on exploration and will take a decision that would serves the interest of all parties.
“We have held several engagements with the Ministry of Finance on this matter, but as you will all agree, 2023 was a very difficult year for our economy. And with the IMF conditionalities coming in, some of these decisions are not taken lightly. But I want to assure you that we will continue our engagement with the Ministry, and hopefully, we can find a middle ground to this issue”.
Samuel Abu Jinapor
Honorable Samuel Abu Jinapor further shed light on the campaign by government to make Ghana the hub of mining in Africa through the establishment refineries that will ensure that Ghana shifts from exporting raw materials to adding value to its mineral resources.
He disclosed that through the strenuous efforts of government and the chamber, Ghana has made a significant strides to bypass South Africa and has become the Africa’s largest producer of gold and that revenue from the sector has played significant role in the recent strides made by the Ghanaian economy.
“Work on the integrated aluminium and iron and steel industries are progressing steadily. GIADEC has completed mineral resource estimation for Nyinahini Block 1, and has identified an investor for Nyinahini Block 2, with the agreement due to be signed next week. GIISDEC has, also, taken delivery of a drill rig to commence mineral resource estimation for iron ore in the Oti Region.
“And as it has now become notorious, we have signed a mining lease for the exploitation of some of our lithium resources, with the commitment to ensure that we retain part of the value of this green mineral here in our country. In terms of value addition, generally, we are working around the clock to secure LBMA Certification for our refinery established through a PPP. We are working with Ghana Manganese Company to establish a refinery for the manganese we produce. We were in China late last year to inspect their refinery there, and, hopefully, work will start very soon on the construction of the refinery, here in our country.
Samuel Abu Jinapor
The Lands Minister also charged members of the Chamber of Mines to make the development of the communities in their catchment areas as part of their priorities and execute socio-economic projects in those communities.
“You are all witnesses to the public commentary on the Atlantic Lithium Mining Lease, and this is despite the fact that we had agreed on enhanced fiscal provisions, including 10% royalties, 13% free carried interest, 1% Growth and Sustainability Levy and additional 1% for a Community Development Fund.
“And so, some of these things, for the sake of your own operations, to have the peace of mind to carry on with your operations, it is useful to do some of these things to carry the country and the community along”.
Samuel Abu Jinapor
Meanwhile, Mr. Joshua Mortoti, President of the Ghana Chamber of Mines projected significant increase in gold production in 2024. He also noted that despite the economic difficulties faced by the country, the mining industry managed to witness some growth and help reduce the impact of the external factors that crippled the Ghanaian economy.
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