Chamber of Mines Breakfast Meeting: Buah urges investors to build local capacity

Investors who come to Ghana's mining sector must be prepared to build local capacity, transfer expertise and leave lasting value for the country, the Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah, has said.

"They are going to have a good return on their investment, but they will also leave behind expertise and help add value to our industry and make sure that the resource owners are empowered by the time they leave," he said.

Mr Buah was speaking at a Breakfast Meeting organised by the Ghana Chamber of Mines in collaboration with the Ministry of Lands and Natural Resources in Accra yesterday.

Assurance

The minister, however, assured the investment community that the government had no plans to nationalise mining operations in the country, adding that all disputes in the sector would be handled on a case-by-case basis.

"The Government of Ghana has not fashioned a blanket policy of nationalising anything. But we deal with issues on a case-by-case basis," he said.

For instance, Mr Buah said that where laws and regulations were found to have been broken, the government would apply sanctions fairly and transparently, and ensure due process was followed at every stage.

On the Damang Mine, the minister confirmed that the government had received a petition and subsequently constituted a committee to examine the issues raised.

He assured stakeholders that the mine, which had created thousands of jobs and sustained surrounding communities, would continue to operate while the ratification process was completed in Parliament.

"We could not allow the Damang Mine to cease operations while thousands of jobs and the livelihoods of communities whose economies depend on the mine were at stake," the minister said.

Mr Buah also said that the government was at an early stage of developing a green minerals policy to govern the country's growing lithium sector, describing the initiative as critical to the nation's energy transition future.

He added that some mining agreements would soon be laid before Parliament for ratification.

Responsible investors

The Chief Executive Officer of the Ghana Chamber of Mines, Kenneth Ashigbey, welcomed assurances by the government that it would favour investors who would deliver returns while building local capacity and leaving lasting legacies.

“This is the position the Chamber also holds,” he added.

Mr Ashigbey, however, raised concerns over a troubling fiscal imbalance, revealing that large-scale miners paid GH¢19 billion in taxes last year, while the small-scale mining sector which was responsible for 52 per cent of the country’s gold output contributed only GH¢5 million.

“That is definitely some value that as a country we are not capturing,” he said.

The CEO pressed for 30 per cent of mining royalties to be channelled directly into host communities to fund local contractors, farmers and manufacturing industries.

Support

Mr Ashigbey also stressed the need for indigenous investors to be supported, saying local companies being built today would become tomorrow’s multinationals.

He, therefore, said denying them security of tenure now would cost the country dearly on the international stage in future.

“Those who sold pickaxes during the gold rush made more money than those who mined,” he said, and urged citizens to position themselves to do both.