The Minerals Commission has commenced the implementation of the fifth edition of new procurement list which has fifty items for the provision of goods and services.
This particular edition replaces the fourth edition of the procurement list which was published by the Commission in early 2022.
Chief Executive Officer of the Minerals Commission, Mr. Martin Kwaku Ayisi, disclosed that receipts come from the sale of minerals of over five billion dollars, a figure which is likely to go up significantly as new mines come on stream. He indicated that the existing ones have expand their operations, and local banks such as CBG, National Investment Bank, Ghana Commercial Bank and Agricultural Development Bank are likely to benefit greatly.
“The same applies to insurance services which also require a minimum of 60% of all insurance and reinsurance placements be made with Insurance companies exclusively owned by Ghanaians.”
Martin Kwaku Ayisi
Mr. Ayisi explained that the increase in the items on the list comes at the time when receipts from mineral revenues and investments hovers around US$ 10 billion. For instance, he noted that there are four huge new projects with investment of about US$ 1.7 billion.
The new projects, he stated, are the US$ 850 million Ahafo North gold mine project by Newmont Ghana Gold Limited, US$ 500 million gold project currently under construction by Cardinal Namdini Mining limited in the Talensi District of the Upper East Region, the US$ 200 million gold mine to be constructed in the Upper West Region and the US$ 125 million lithium project at Ewoyaa in the Central Region.
Expansion projects and redevelopment of mines
Additionally, Mr. Ayisi stated that some mines are undertaking expansion and redevelopment. The undergoing expansion include the Ahafo South mine of Newmont which now covers the Subika underground. Golden Star Resources is equally spending about a billion dollars to expand the Wassa underground mine.
The mines being redeveloped are the Anglogold Ashanti Obuasi mine where a billion dollars has so far been expended and the the Bibiani mine of Mensin Gold Ghana Limited which started production in the last quarter of 2022. The redevelopment of the Bibiani mine is over US$200 million dollars.
The Minerals and Mining (Local Content and Local Participation) Regulations, 2020(L.I. 2431), which governs the Commission’s activities came into force on 22nd December 2020. The purpose of the Regulations among others is to promote job creation using local expertise, goods and services in the mining industry and their retention in the country.
The law is also to achieve the minimum in-country spend for goods and services and create mining and mineral related industries that will sustain economic development.
Pursuant to Regulation 7 of L.I. 2431, the Commission is required to publish a local procurement list which stipulates the goods and services with Ghanaian content which are to be procured in the country. Regulation 7(3) of L.I. 2431 further states that the Commission shall review the procurement list annually.
Furthermore, under Act 703 and L.I. 2173 mine support service providers, holders of mineral rights and holders of licence to export or deal in minerals are required to submit 5-Year Procurement Plan to the Mineral Commission. The 5-year Procurement Plan shall among other things specify the targets for local procurement covering at least the items specified in the local procurement list as provided for in the regulation, prospects for local procurement and Specific support to providers or suppliers.
For instance, all mining companies are expected to ensure that at least sixty percent (60%) of financial services including revenue from the sale of minerals go to the local Banks. It is the expectation of the Minerals Commission that these investments will support the growth of the economy and boost local participation under the new procurement list.
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