Revise VAT on mineral exploration - Jinapor to next government

The Minister of Lands and Natural Resources, Samuel A. Jinapor, has made a strong recommendation to the next government to review the Value Added Tax (VAT) component of the tax build-up on the exploration for prospective mining companies.

Mr Jinapor said since exploration was the lifeblood of the mining industry, it was important that a fair VAT regime and other incentives were given to prospective investors to encourage exploration.

The Damongo Member of Parliament (MP) made that call at the 10th Ghana Mining Industry Awards (GMIA) organised by the GCM in Accra last Friday.  

The event was held on the theme: “A decade of rewarding excellence in the mining sector." It brought together captains of the mining industry, policymakers, regulators and a section of the public. 

Award winners

At the 10th GMIA, AngloGold Ashanti Iduapreim Mine was adjudged the Mining Company of the Year for excelling in sustainable environmental management, occupational, health and safety; corporate social investment mining innovation and fiscal contribution to the state.

The Mining Personality of the Year (President's Category) went to Samuel Boakye Pobee of AngloGold Ashanti while the Best Female Miner of the Year (Technical ) went to Evelyn Ofori-Atta of Newmont Ahafo South Mine.

In the Media Category, a senior reporter of the Daily Graphic, Timothy Ngnenbe; broadcast journalist with Multimedia, Erastus Asare Donkor; a medical doctor and reporter of JoyNews, Dr Neta Parsram; and a freelance journalist and documentary producer, Edem Srem, picked up awards in the Print, Broadcast and Online categories respectively for their quality reportage on responsible mining. More than 20 other individuals and companies won awards in different categories.

Context

Ghana is Africa’s leading producer of gold, with four million ounces (oz) production last year.  Preliminary reports for the first half of this year show that gold production is in excess of 2,000,000 oz from both large and small-scale mining.

All things being equal, total production is projected to exceed the 4 million oz recorded last year.  As of August 2023, gold alone had contributed $4.7 billion in exports receipts.

For the first half of this year alone, export receipts from gold reached $5 billion, with a projection to exceed $10 billion by the end of the year.

Mr Jinapor said with the coming onstream of Cardinal Namdini Gold Mine, the expansion of existing mines, the revamping of dormant mines and the construction of new mines by Newmont Ahafo North and Azumah Resources, as well as the first lithium mine by Atlantic Lithium, he was confident that the country's legacy in the sector would be  consolidated.

He said since the mining industry was the country's cash cow, there was the need to jealously guard it for sustainable development. In that regard, he called on all stakeholders to commit to the next decade "with renewed determination, united in our purpose to harness more fully the potential of mining for the benefit of all Ghanaians."

The minister said going forward, innovative measures must be taken to improve the security of mining concessions.

"This is a matter we prioritised and trained special security forces for deployment to the mines. I have also led the Chamber to make presentations to the Ministerial Committee of the National Security Council on this matter and it is my hope that the next government follows through the agreed recommendations to ensure adequate security for the mines," he said.

Mr Jinapor also urged the GCM and its members to pay particular attention to the development of mining communities where they operate.

Responsible mining

The First Vice-President of GCM, Frederick Attakumah, stressed the need for mining companies to undertake their operations in a responsible manner to ensure that their operations did not affect the integrity of the environment.

Mr Attakumah underscored the need for all mining companies to strictly adhere to the local content requirement of their leases to help build local capacity and employ more people in mining communities.

He commended the Minister of Lands and Natural Resources, Samuel Abu Jinapor, for his contribution to the mining industry. 

Galamsey

Touching on the illegal mining menace, the GCM Vice-President said it was crucial for all stakeholders to demonstrate their commitment to ending the canker by helping to address the triggers of the practice.

He said the GCM was committed to working with the government, the Ghana National Association of Small-scale Miners (GNASSM and other stakeholders to fight the menace .