Export Revenue From Gold Hits $6.6Bn In 2022….. Lands Minister

The Minister for Lands and Natural Resources, Samuel Abu Jinapor has said export earnings from Gold for year 2022, was a whooping $6 .6 billion, making it a leading source of foreign exchange earnings fid ghe country.

The sector Minister made the above statement when he took his turn to brief the media during the periodical Ministers’ press briefing series held in Accra yesterday.

Touching on Developments in the Mininig Sector, Mr. Jinapor  reiterated that mining continues to be one of the main pillars of our economy. According to him, the sector retained its position as the leading source of export revenue. Export receipts in 2022 from gold alone was over Six point Six Billion US Dollars (US$6,600,000,000.00).

Following significant investments in exploration, four (4) new large scale mining operations will start production within the next two and half years. There are, also, significant investments in the redevelopment and expansion of existing mines. After reviving the Obuasi mine in 2019, the Bibiani mine, which had been dormant for seven (7) years, has also been revived, and production started in October last year. These investments will result in a significant increase in our mineral production and Government revenue.

“To promote more investment in the sector, we are, currently, undertaking a general review of the Mining Policy adopted in 2014, and the Minerals and Mining Act which was passed in 2006, to align them with current developments in the mining industry,” he added.


Local Content and Local Participation

As part of measures to promote job creation in the mining industry through the use of local expertise, goods and services, last year, the Minerals Commission increased the items on the Local Procurement List of goods and services reserved for Ghanaians from twenty-nine (29) to forty-one (41), and this year, the number has again been increased to fifty (50).

The new additions include the provision of medical services at mine sites, construction and management of Tailings Storage Facilities, assaying and motor rewinding. We have also increased the provision of financial, insurance and reinsurance services reserved for Ghanaians, from twenty percent (20%) to a minimum of sixty percent (60%). The provision of these goods and services by Ghanaians will ensure that we retain, here in our country, some Three Billion US Dollars, (US$3,000,000,000.00), annually, which would have otherwise been exported.

Value Addition

Discussions are ongoing with Rand Refinery of South Africa, a London Bullion Marketing Association (LBMA) Referee, to secure LBMA certification to enable us easily export and trade our refined gold on the international market. PMMC’s jewellery subsidiary is now able to produce gold tablets, engrave and plate jewellery, and this will be a major boost for their work. The plan, going forward, is to establish a Gold Souk, a market place for manufacturing and marketing of gold articles, here in Ghana.

The implementation of the Ghana Integrated Aluminium Development Corporation (GIADEC)’s Four-Project Agenda is on course. Drilling and Mineral Resource Estimation on two (2) hills in Awaso, under Project 1, will soon commence, to expand the existing mine, and significant amount of work has been done on the other three Projects. Mineral Resource Estimation for iron ore is, also, underway at the Akpafu deposit to determine its tonnage, grade and value.

Diversification of mineral resource base

The Ghana Geological Survey Authority (GGSA) continues to intensify limestone exploration activities in the Mamprusi West District to develop limestone mines to feed the cement industry. Over three thousand acres (3,000 acres) of land has been identified as suitable for clinker production. The Authority has, also, identified and evaluated over one thousand, two hundred and seventy-five metric tonnes (1,275 Mt) of Clay resources at Assin Fosu and its environs in the Assin North and Central Districts of the Central Region, suitable for the production of high quality assay crucibles, bricks, tiles and electrical porcelain.

Regulation of Small Scale Mining

To support the small scale subsector, last year, Government reduced withholding tax on unprocessed gold by small scale miners, which was introduced in 2015, from three percent (3%) to one point five percent (1.5%). This has resulted in a massive increment in gold exports from small scale mining, from three thousand four hundred and twenty-nine point nine one kilogrammes (3,429.91kg) in 2021, to twenty-two thousand, one hundred and fifty-eight point two five kilogrammes (22,158.25kg) in 2022, that is about six hundred percent (600%) increment.

The Ministry continues to implement its two-pronged approach of law enforcement and reformation to deal with illegal mining. Thus, river bodies remain “Red Zones” for mining, while reconnaissance, prospecting and/or exploration in Forest Reserves continue to be suspended, except in exceptional circumstances. Five speed boats have been procured to patrol our river bodies.

We are, also, implementing the Minerals and Mining (Mineral Operations – Tracking of Earthmoving and Mining Equipment) Regulations, 2020 (L.I. 2404), and we expect to track some four thousand (4,000) excavators and other earth moving equipment.

So far, a control room has been established at the Minerals Commission, and seventy-five (75) excavators at various mine sites have been installed with tracking devices. 

We continue to promote responsible small scale mining through Community Mining Schemes. Last year, fourteen (14) of these schemes were commissioned. And last month, I commissioned the first Community Mining for the year in Bongo-Soe in the Bongo District of the Upper East Region. In the coming days, new Community Mining Schemes will be commissioned in Bole in the Savannah Region, Wa in the Upper West Region, and Nangruma in the North East Region.

All these Schemes are supported with Gold Katchas to help small scale miners extract gold from the ore without the use of mercury.

The National Alternative Employment and Livelihood Programme, which President Akufo-Addo launched in 2021, is also being implemented to provide alternative sources of income for communities affected by the fight against illegal mining. The Programme employs several youths in the production of seedlings and reclamation of degraded mined lands. Currently, reclamation is ongoing over one thousand hectares (1,000 ha) of degraded lands in Ashanti, Eastern and Western North Regions.

This year, the Apprenticeship, Skills Training and Entrepreneurship module of the Programme will be rolled out, and is expected to provide training for some five thousand (5,000) youth in agriculture, technical, vocational, industrial, and mining skills.

These gamut of measures have yielded some positive results, with most of our river bodies visibly clearing up and the turbidity levels improving. That is not to suggest that we have rid the country of illegal mining. As speak, the cartels involved in these illegalities continue to operate, and are finding every means to outwit us. But we will continue to adopt the necessary measures to ensure that we come to grips with this canker.

Boundary Protection

The Ghana Boundary Commission has completed the construction of a land boundary terminus (Pillar 1) on the Ghana–Togo border, and paves way for us, this year, to commence the second phase of the boundary delineation. Land boundary reaffirmation exercises with Côte d’Ivoire and Burkina Faso, also continue unabated.

To build and enhance the capacities of stakeholders in relevant maritime frameworks and laws, as well as maritime boundary dispute pre-emption and resolution, the Commission will, this year, hold an international conference on “Maritime Boundaries and International Law in Africa.” This will help littoral African countries, including our neighbours, to gain an understanding of maritime frameworks and laws that govern the maritime space globally, to ensure the proper exploration and management of marine resources.

” I want to assure you, and the good people of Ghana, that Government, under the distinguished and outstanding leadership of President Akufo-Addo, will continue to adopt and implement policies necessary for the effective protection, preservation, management and utilisation of the lands and natural resources of our country for the benefit of the Ghanaian people,” he emphasised.

By Kingsley Asiedu