Local manufacturers and suppliers in the mining sector, in 2017, benefited from the US$ 1.23 billion spent by mining firms in the country, the Former president of the Ghana Chamber of Mines, Mr Kwame Addo-Kufuor, has said.
This represents 34 percent of released mineral revenue and an increase on preceding years’ spending.
In an address, at the 90th Annual General Meeting of the Chamber, Addo-Kufuor said, “there is room for entrepreneurs in the local economy to increase their participation in the value chain.”
The total local purchases by mining companies (inclusive of energy) amounted to US$ 1,690.97 million, from US$ 1,492.9 million in 2015.
On the back of growth in production and modest increase in the traded price of gold, the total realised revenue of the chamber rose by 13 percent to US$ 3.68 billion 2017.
Cumulative average price of gold went upwards from US$ 1,250 per ounce in 2016 to US$ 1,257 per ounce in 2017.
Production increased by 11 percent to 2.81 million ounces in 2017 from 2.54 million ounces in 2016.
However, data from the Minerals Commission shows that Ghana’s gold production declined marginally by a one percentage point, from 4.24 million ounces in 2016 to 4.22 million ounces in 2017.
This decline was largely due to developments in the small-scale mining sector.
The Chamber took in 2017 setup an online portal to promote its local content objectives.
Addo-Kufuor said, the chamber was led to bring in the online portal to provide adequate information on inputs required by mining companies.
He added that, the Chamber’s commitment goes beyond the mere purchase of inputs from local suppliers, but focuses more on local manufacturing.
Stimulating the economy would require a fast-paced industrialization drive on the back of the mining industry with the potential of integrating the sector with other areas.
This, he noted will apparently make Ghana the focus for the production and purchasing of mining inputs on the African continent.
The total mining receipts mobilized by the Ghana Revenue Authority (GRA) increased by 31 percent from GHS 1.65 billion in 2016 to GHS 2.16 billion in 2017.
This translates in 16.3 percent of domestic direct revenue mobilized by GRA in 2017.
The sector’s corporate tax receipts increased by 39 percent, from GHS 696.9 million in 2016 to GHS 969.6 million in 2017, while mineral royalty revenue also increased by 28 percent to GHS 702 .4 million.
The growth in mineral revenue also reflected in the mining industry’s share of total merchandise export in 2017, which at 47 percent exceeded the contributions of both oil and cocoa.
By Joshua W. Amlanu
