Ghana is the leading gold producer on the continent
The Ghana Chamber of Mines has selected a consultant to conduct a study aimed at positioning the country as a hub of mining support services in West Africa, the president of the chamber, Eric Asubonteng, has said.
Ghana has overtaken South Africa as the leading gold producer on the continent, and in West Africa, it accounts for about a third of total gold production.
This, as well as the decline of mining in South Africa and growth in mineral production in the sub-region, provides Ghana with a first mover advantage in positioning itself as the hub of mining support services in West Africa, said Mr. Asubonteng.
He added that the chamber is funding a study on how to realise this objective.
Speaking to the press after an engagement with Parliament’s Mines and Energy Committee on Tuesday, he said: “Mining is playing a role in the economic development of Ghana, but there is so much potential that we can take advantage of, including that, as stakeholders, we work in a concerted manner to establish manufacturing bases and service delivery offices in Ghana that will serve not only the Ghana[ian] mining industry but the West Africa sub-region [too].”
He added: “Most of the service industries are based in South Africa; we want them to be based in Ghana servicing the West Africa sub-region. What we want to do is to take advantage of the lead we have already, not only in production but [also] in the regulatory institutions that we have. We want to leverage that.”
In view of the country’s leading position as the top gold producer in Africa, some refineries have already been set up, with some in the pipeline, Mr. Asubonteng said.
He also stated that it is the desire of the chamber to reverse the trend whereby exploration investments are pushed outside the country into other jurisdictions of West Africa.
He identified high landholding costs and the Value Added Tax on key exploration inputs as disincentives to mineral exploration investment in Ghana.
Mr. Asubonteng said the chamber had been encouraged by its interaction with the committee and looked forward to continuous engagement.
“Mining is about sustainable development and not just rent. The focus should be on harnessing the full benefit, beyond the direct fiscal contribution, and the industry should be positioned as a catalyst for enhancing local content as well as integrating the sector into the non-mineral economy.”