Multinational companies urged to invest in mining sector

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has urged multinational companies, particularly those from China, to invest in the country’s mining sector for mutual benefits. 

“The government is ready to partner investors, particularly those from China, to add value to our mineral resources ????and efficient and effective management in the exploitation???? of our natural resources for the benefit of our people, while ensuring optimal returns for investors,” he added.

The minister said apart from gold and other traditional minerals, the discovery of green minerals had made Ghana one of the best destinations for mining. He added that the government had a progressive policy of leveraging technology and partnerships to build a sustainable mining industry anchored on value addition.

Mr Jinapor was speaking at the China-Ghana Resources Innovation roundtable in Accra last Tuesday. The event was attended by stakeholders from Ghana and China, including the Chinese Ambassador, Lu Kun.

Policy

Mr Jinapor said that the government's policy for the mining sector was aimed at ensuring effective exploitation and value addition to minerals. He said it also prioritised local content and participation, as well as effective utilisation of mineral resources for the benefit of citizens and investors.

The minister said given that China was the only country to build an end-to-end lithium to battery industry, Chinese investors would be Ghana’s "natural partners" in the quest to judiciously exploit lithium and other green minerals.

Mr Jinapor said the mining sector contributed 16 per cent of the total revenue generated by the government, and also formed 7.9 per cent of the country’s gross domestic product (GDP).

"Adding to these impressive numbers which have the potential of rising astronomically through an effective Ghana-China collaboration is the historically rich bilateral relations between the two nations, as well as the success story of Chinese companies in Ghana, particularly the mining sector," he said.

The minister, however, urged Chinese companies and other foreign investors to stay away from the small-scale mining sector which he said was lawfully reserved for local companies.

"Small-scale mining is a no-go area for foreigners; it is meant for local people. It will be illegal for any non-Ghanaian to invest in that sector," Mr Jinapor stressed. 

Chinese commitment

For his part, Mr Kun reiterated the commitment of China to working with Ghana to exploit its resources in a sustainable and environmentally friendly manner. He said promoting high quality mining by the two countries was key to unlocking the potential of the sector for the benefit of their citizens.

Mr Kun advised Chinese companies operating in Ghana’s mining sector to strictly adhere to the country's mining laws.