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Accra, Ghana, October 28, 2019//-Mining companies operating in Ghana procured 94.4% of their inputs from local supplies as part of a deliberate effort to enhance local content in the country.
Data from the Minerals Commission has disclosed. The procurement figure rose by 1.57% in 2017 from 92.83% in 2016. If the 2018 and 2019 data is released, the local procurement spending may reach 100%.
The Ghana Chamber of Mines and the commission are aiming to achieve 100% local procurement of mining supplies soon.
This is in sharp contrast to the long-held perception that mining companies mostly procure their goods abroad, denying local suppliers of business to boost local economic development in the country.
Under Regulation 2(2) of the Minerals and Mining (General) Regulations, 2012, L.I. 2173, mineral right holders are required to submit to the Commission, a five-Year Procurement Plan which among other things details – targets for local procurement covering at least items in local procurement list (LPL).
Third Edition of LPL which was published in October, 2018 contains 10 items: Legal, Security, Insurance, Financial, Contract Mining Services, Fuel Supply,} Activated Carbon, Cable Bolt & access., Wear-resistant plates and Cupels.
Some local suppliers have also benefitted from the local content policy in terms of fuel supply to member companies such as Newmont, Anglo, Gold Fields, Asanko, Chirano, and Ghana Manganese.
These include Zen Petroleum, GOIL, Champion Oil, and Gaso Petroleum. The industry’s confidence in local content has been demonstrated even beyond its core business of mining.
For instance, in 2018, the sector contributed 9.8% to GDP compared to 7.3% in 2017, making it the fourth largest economic sector by value.
The Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney indicated that proceeds from the export of minerals also accounted for 39% of gross merchandize exports, making it the foremost source of export earnings for the economy.
Producing member companies’ share of mineral revenue returned to the country increased from 70% in 2017 to 75% in 2018.
"Producing member companies also continue to employ more and more Ghanaians to ease the unemployment situation in the country".
The Minster of Lands and Natural Resources, Kwaku Asomah-Cheremeh said: "Indeed, the goal of the local content strategy is to promote linkages with other sectors of the economy through local employment opportunities, local manufacturing of inputs, in-country spending on local procurement of goods and services, technology and skills transfer on local participation through equity and management".
He said that the government recognizes that for the mining sector to improve its contribution to broad base development it must be better integrated into the national and event regional economic fabric through linkages as stipulated in the African Mining Vision.