3 measures Ghana could implement to boost its mining sector

3 measures Ghana could implement to boost its mining sector

By: Nii Ammui Fio | 2 mins read

The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has outlined three key measures to strengthen Ghana’s mining sector and maximize its benefits.

Speaking at the 10th Ghana Mining Industry Awards held at the Kempinski Hotel Gold Coast in Accra, Jinapor emphasized the need to review the Value Added Tax (VAT) on exploration, enhance the security of mines, and prioritize the development of mining communities.

Jinapor highlighted the productive collaboration between the Ministry of Lands and Natural Resources and the Ghana Chamber of Mines, which has contributed significantly to Ghana’s rise as Africa’s leading gold producer.

“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,” he stated.

He also noted that export receipts from gold were $4.67 billion as of August 2023, with the first half of this year alone generating $5 billion. Projections indicate these receipts could exceed $10 billion by the end of the year.

The first measure Jinapor proposed was a review of VAT on exploration to encourage investment in this critical area, which he described as the “lifeblood of the mining industry.” While efforts have been made to address this issue, he called on the next administration to prioritize it for the sector’s continued growth.

The second measure focused on ensuring robust security for mines to allow industry players to operate without fear of attacks. Jinapor noted that special security forces had been trained for deployment to mining areas, with recommendations presented to the National Security Council.

Lastly, he emphasized the importance of developing mining communities, arguing that happy and thriving communities would ensure the safety and sustainability of mining operations.

He commended the Ghana Chamber of Mines for its support, noting that their partnership has been instrumental in positioning the mining sector as a pillar of Ghana’s economy. He stated, “Through our collaborative efforts, the mining sector has remained the pillar of our national economy with consistent growth in export receipts.”

On his part, the Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney, lauded Jinapor for his visionary leadership and the extraordinary collaboration between the Ministry and the Chamber. Koney highlighted the impressive gains made in gold production as a result of this partnership.

The awards ceremony recognized the contributions of industry players, with Anglogold Ashanti Iduapriem Mining Limited winning the top honor as Mining Company of the Year. Jinapor presented the award and commended the company for its exceptional achievements.