At Mining Indaba in South Africa: 7 Entities woo investor
Seven Ghanaian firms and agencies in the mining sector are holding high level engagements to attract strategic investments at the leading global conference and exhibition on mining.
The combination of mining companies, mining support services and government agencies, mainly under the Ministry of Lands and Natural Resources, are holding various discussions with potential investors and collaborators at the four-day global conference and exhibition on Mining in Africa which opened in Cape Town, South Africa, on Monday.
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The companies are Newmont Africa, Adamus Resources Limited, Rocksure International and Chirano Gold Mine.
The rest are the Ghana Integrated Aluminium Development Corporation (GIADEC), the Minerals Commission and big downstream petroleum dealer, Ghana Oil Limited (GOIL).
Preferred investment
The Minerals Commission is showcasing Ghana as the preferred mining investment destination in Africa.
GIADEC, for its part, is seeking to leverage the country’s existing bauxite company and the Volta Aluminium Company (VALCO) to drive the full commercial exploitation of the country’s
bauxite reserves.
It also seeks to add value through refining bauxite into alumina and smelting alumina to produce aluminium while encouraging the development of downstream industries.
Newmont Africa, which has two gold mining operations in the country – Ahafo South Mine and the Akyem Mine – is hoping to expand its footprints in the country and provide significant upside potential for maintaining Newmont Africa’s strong performance.
For Rocksure, it is looking to become a significant driver in the repositioning of mining as a crucial platform for the country’s economic development and the Ghana Beyond Aid agenda.
Visit to stands
At the Minerals Commission stand, the Director, External Relations and Communications at the Ghana Chamber of Mines, Ahmed Nantogmah, stressed that as a long-term business concern, sustainable investment in mining was critical.
He also indicated that since exploration was a long-term venture, it was imperative to have tax exemptions, which he described as critical to sustain the mining environment.
The Vice-President, Sustainability and External Relations, Newmont Africa, Adiki Ayitevie, said their key expectation was to project the Newmont Africa brand to mining-related concerns and experts to understand best practices and network for efficiency in the sector.
“We are also showcasing Ghana as a mining-friendly country, interact with other countries and use mining as a catalyst for development,” Mrs Ayitevie stated.
Conducive environment
The Chief Executive Officer (CEO) of Rocksure International, Kwesi Osei Ofori, observed with satisfaction that mining concerns and the experts were excited about Ghana, which was the leading producer of gold, as the country had a peaceful and thriving democracy as well as the expertise in mining engineering and other professionals.
He gave credit to the Minerals Commission for operating functional systems and regulations in the mining environment.
Mr Ofori, however, stressed the need to encourage more Ghanaians to invest in mining, saying “Ghana can produce many billionaires and experts all through effective, responsible and sustainable mining”.
He said while it was important for the government to create the enabling environment for the mining sector to thrive, it was equally prudent for the private sector to get involved and be at the forefront.
Even though the mining exhibition took off on Monday in the historic city of Cape Town, the flow of visitors to the Ghana pavilion was a good indication that Ghana has carved a niche in the mining sector.
Background
The Bank of Ghana statistics on merchandise exports showed that the minerals sector accounted for 48.4 per cent of gross exports receipts in 2020, which was more than the combined contribution of cocoa and crude oil to merchandise exports.
The minerals sector retained its position as the foremost source of foreign currency from export earnings in 2020.
Data from the Ghana Revenue Authority (GRA) shows that fiscal revenue (excluding dividends) from the mining and quarrying sector increased from GH¢4.01 billion in 2019 to GH¢4.172 billion in 2020, representing an upturn of 3.97 per cent.
The sector’s payments represent 18.1 per cent of direct domestic receipts mobilised by the GRA and 7.5 per cent of total government revenue in 2020.
Likewise, the non-tax revenue unit of the Ministry of Finance received GH¢224.836 million as dividend payments by the mining industry in 2020.
Ghana Chamber of Mines producing member companies returned $3.67 billion of their realised mineral revenue of $5.140 billion in 2020 through the local commercial banks.
This translates into 71.32 per cent of their mineral export revenue.
Similarly, the chamber’s producing member companies stimulated domestic activity by spending $4.387 billion of their realised revenue on inputs procured from in-country manufacturers and suppliers as well as on financing corporate social investment projects and honouring fiscal obligations to the state.
Producing member companies expended $3.049 billion on purchases of goods and services, inclusive of electricity and diesel, from resident manufacturers and suppliers in 2020.
The companies also spent $27.84 million in 2020 on a variety of projects that were aimed at improving socioeconomic infrastructure and services in their respective host communities.
