Stakeholders in mining discuss fall in gold prices
Stakeholders in the mining sector have met to brainstorm and fashion out solutions to the challenges confronting the sector.
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They discussed issues relating to the continuous fall in gold prices on the international market that had resulted in massive job cuts in the mining sector worldwide.
Last year alone, thousands of jobs were lost in the mining sector; a situation which contributed to the already high unemployment rates in Ghana.
A recent report by the African Development Bank (AfDB) and the Organisation for Economic Cooperation and Development (OECD) Development Centre together with two United Nations organisations indicate that an estimated unemployment rate among youth aged between 15 and 24 in Ghana stands at 25.6 per cent; twice that of those between 25 and 44 years and three times that of the 45 - 64 age group.
Gold prices have suffered their sharpest fall since the 1980s, heightening fears that one of the world’s revered metals is about to lose its existence or relevance.
Additionally, issues regarding high corporate taxes on their (mining industry’s) operation, as well as bureaucracy involved before their demands were put across were also deliberated upon at the one-day seminar in Accra.
Five per cent stabilisation levy
The National Fiscal Stabilisation Levy (NFSL) enacted by the Parliament of Ghana requires that mining companies pay five per cent on profit before tax. This is to enable government to generate more revenue for economic expansion in the country.
Since its enactment, mining companies had raised red flags about the law, arguing that it had serious implications on their operations.
According to statistics from the Ghana Chamber of Mines (GCM), the mining industry paid GH¢ 893.77 million in respect of corporate tax to the Ghana Revenue Authority (GRA), representing 36.98 per cent of the total company tax collected by the authority in 2012.
In an interview, the Chief Executive Officer of the Minerals Commission, Dr Tony Aubyn, agreed that the various concerns raised by the companies were legitimate.
Minister to address challenges
He, therefore, assured them that all the issues put across would be relayed to the Minister of Lands and Natural Resources, Nii Osah Mills, as soon as possible for immediate resolution.
To help resolve all the challenges raised during the brainstorming session, Dr Aubyn stated that a round-table discussion would be held very soon to forge the way forward.
He commended mining companies in the country for their continuous support for the communities in which they operated.
The Senior Vice-President of Newmont Ghana and President of the Ghana Chamber of Mines, Mr Johan Ferreira, stated that the mining companies were always prepared to address major challenges in the communities they operated.