Mining contributes some $4b to Ghana’s economy in 2015

Dr. Toni Aubynn - CEO, Minerals Commission
Dr. Toni Aubynn – CEO, Minerals Commission

In spite of the fall in production and drop in the price of gold, the mining sector contributed some $4 billion to Ghana’s economy in 2015, and over 70 per cent of the revenue generated by the sector stayed in the country, the CEO of the Minerals Commission, Dr. Toni Aubynn told in an interview.

The price of gold on the international market has fallen. The price on Tuesday October 18, 2016 was about $1,262.90 an ounce.

Dr. Aubynn, who was speaking to on the sidelines of the West and Central Africa Mining Summit and Expo in Accra, October 19, 2016, noted that as a result of the local content policy, mining companies have bought items worth $136 million directly from Ghanaians.

On taxes, he said unfortunately, the decline in production and prices has affected the quantum of taxes the country gets.

He however, indicated that Ghana has been lucky in these critical times.

“Fortunately for us in spite of the challenges, in getting investments into the mining sector globally, we succeeded in getting some investments. We have the Asanko Mines which started operations six months ago, coming to shore up the production level in the country,” he said, adding that, “This is important because, globally, it is difficult to get monies in various jurisdictions going into mining. Ghana is lucky to even have one mine operating.”

Dr Aubynn stated that globally, Ghana is the only country that on the average opens a mine on a regular basis, in the last 20 years. “You go to other places, you won’t see new mines opening,” he said.

The Asanko Mine has started operations in the Amansie area.

Earlier in a speech at the opening of the Summit, Dr. Aubynn said, “Ghana has the requisite environment that investors need, and this he said, include availability of abundant mineral resources with basic geo-scientific data, political stability, an attractive investment framework to reduce corruption and to enforce the rule of law and transparency in the management of our mineral resources.”

He said Ghana also has a robust, transparent, effective and time-tested legal framework that is friendly for investments in the mining sector. He cited the Minerals and Mining Act 2006 (Act 703) and its associated regulations; the Minerals (Royalties) Amendment Act 2010 (Act 794) and the Income Tax Act, 2015 (Act 896).

Dr. Aubynn said the total investment into the mineral and mining sector in from 1980 to 2015 was some $16 billion, adding that currently, the sector contributes 14 per cent of government domestic revenues as captured by the Domestic Tax Division of the Ghana Revenue Authority.

The two-day mining event is organized by Magenta Global.

By Emmanuel K Dogbevi
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