The Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, has proposed three pivotal reforms aimed at strengthening the relationship between the Ghanaian government and the Ghana Chamber of Mines.
He believes that these measures will optimize the mining sector’s potential, contributing to Ghana’s socioeconomic development. 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.”
Hon. Samuel A. Jinapor, Minister for Lands and Natural Resources
He emphasized that exploration is the “lifeblood” of mining, and providing incentives in this area is crucial to attracting investment and fostering growth.
Hon. Jinapor revealed that efforts to address the VAT issue had been initiated under the current administration, with the Economic Management Team actively engaging the Chamber on the matter. However, he noted that the current parliamentary dynamics might delay the resolution of this issue.
“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.”
Hon. Samuel A. Jinapor, Minister for Lands and Natural Resources
Security concerns in the mining sector were another priority highlighted by Hon. Jinapor. He emphasized the importance of creating a secure environment for industry players to operate without fear of attack.
The Ministry has already trained specialized security forces for deployment to mining sites and presented recommendations to the National Security Council.
The Minister noted, “It is my hope that the next Government follows through on the agreed recommendations to ensure adequate security for the mines.”
Hon. Jinapor stressed the need for mining companies to prioritize the development of local communities where they operate. He linked community development directly to the security and sustainability of mining operations, noting that “if the local community is happy, the mines would definitely be safe.”
He called on the Chamber and its members to collaborate with the government in addressing the needs of mining communities, while also supporting broader efforts to combat illegal mining.
Collaboration for Success
Speaking at the 10th Ghana Mining Industry Awards, Hon. Jinapor underscored the progress made through the close collaboration between the Ministry and the Chamber while emphasizing the need for continued strategic partnerships.
“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. “
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.”
Hon. Samuel A. Jinapor, Minister for Lands and Natural Resources
He acknowledged the cooperation he had enjoyed with the Chamber’s past and present leadership, including Mr. Eric Asuboteng, Mr. Joshua Mortoti, Mr. Michael Edem Akafia, and the Chamber’s Chief Executive Officer, Mr. Sulemanu Koney.
According to the Minister, this collaboration has been instrumental in positioning Ghana as Africa’s leading gold producer, surpassing South Africa. He noted that Ghana’s gold production has consistently increased, with last year’s output reaching an impressive four million ounces.
Preliminary figures for 2023 suggest that Ghana is on track to exceed this figure, with over two million ounces produced in the first half of the year.
Hon. Jinapor attributed this success to the Ministry and the Chamber’s shared commitment to advancing the mining sector. “Through our collaborative efforts, the mining sector has remained the pillar of our national economy, with consistent growth in export receipts,” he stated.
“In 2022, gold alone accounted for export receipts of $4.67 billion. As of mid-2023, gold export receipts had already reached $5 billion, with projections indicating a potential $10 billion by year’s end.”
Hon. Samuel A. Jinapor, Minister for Lands and Natural Resources
These figures underscore the mining sector’s role as a key driver of economic growth. Hon. Jinapor praised the sector’s stakeholders for their dedication and commitment to excellence, urging them to build on this foundation to further cement Ghana’s status as the mining hub of Africa.
Hon. Jinapor reaffirmed the government’s commitment to creating an enabling environment for mining companies to thrive and urged investors to take advantage of opportunities in value addition to Ghana’s mineral resources.
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