Ghana earns $1b annually through local content - The Daily Statesman Newspaper

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has disclosed that the implementation of the local content policy of procurement of goods and services in Ghana generates one billion dollars for government annually.

He explained that, but for the policy, the purchasing of these goods and services would have gone to citizens of other countries.

Mr Jinapor made the disclosure yesterday at Parliament in response to a question by Elvis Morris Donkoh, Member of Parliament for Abura Asebu Kwamankese, on new measures adopted to enhance local content in the procurement of goods and services and which areas have been preserved for Ghanaians.

According to the Minister, the government’s overall policy objective for the mining sector is to build a viable, sustainable, indigenous and environmentally sound mining industry with strong local content participation.

Mineral rights

He said pursuant to this vision, in 2020, government promulgated the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I.2431) to, among others, promote job creation through the use of local expertise.

“It also sought to achieve some minimum local level and in-country spending for provision of goods and services, maintain a degree of participation for Ghanaians and Ghanaian companies in the mining industry value chain and develop capacities in the mining industry value chain through education, skills transfer and expertise development,” he noted.

He noted that the law requires mineral rights holders to develop, for approval by the Minerals Commission, a localisation programme for the recruitment and training of Ghanaians, and a procurement plan to buy goods and services with Ghanaian content.

Mr Jinapor added that Regulation 7 of L.I.2431 empowers the Minerals Commission to publish in the Gazette, on its website and in a newspaper of national circulation, a local procurement list which stipulates the goods and services with Ghanaian content which are to be procured in the country by mineral rights holders.

“Pursuant to this, the Minerals Commission as at 3rd March, 2022 concluded discussions with all stakeholders, including the Ghana Chamber of Mines, and has increased the goods and services to be procured locally from 29 to 41.

“Regulation 10 of L.I.2431 requires minerals rights holders to insure their insurable risk with companies licensed by the National Insurance Commission (NIC), unless expressly authorised by the NIC, and regulation 12 requires mineral rights holders to retain the services of financial institutions incorporated in Ghana for their operations that require financial transactions, with at least 20 percent reserved for financial institutions owned by Ghanaians,” he added.

He also indicated that the Minerals Commission, since the beginning of the year, had been working with the Bank of Ghana and the National Insurance Commission, had submitted to the Ghana Chamber of Mines a list of all insurance companies licensed by the NIC and list of banks incorporated in Ghana and those owned by Ghanaians.

He added that mineral rights holders had been directed to ensure full compliance with the requirement while the Minerals Commission is working with them to ensure that they comply fully.

Community mining

Touching on community mining, the Lands Minister said the government is determined to make Community Mining Scheme (CMS) the model of small-scale mining.

“The Ministry of Lands and Natural Resources was working not to limit the idea to the country but also across the continent, with the government not stopping short of anything to achieve the goal. The Ministry through the Minerals Commission was investing in the mercury-free ore processing equipment, known as “the Gold Katcha” where 100 of them had been procured for CMS across the country,” he said.

CMS was rolled out by the government of President Akufo-Addo in 2019, as a substitute for illegal small-scale mining.

“Mr Speaker, in 2021, we revamped the Community Mining Scheme, and we have since reformed and clarified the legal, policy and operational framework of the scheme, to provide a clear pathway for responsible and sustainable small-scale mining with community ownership,” he added.

Mr Jinapor noted that working with the Minerals Commission, the Ministry had developed Operational Manual that has set standards and guidelines which all CMS must meet and or comply with.

“Mr Speaker, the Small Scale and Community Mining Operational Manual was launched by my supportive Deputy Minister and Member of Parliament for Tarkwa-Nsuaem Constituency, George Mireku Duker on Friday November 5, 2021 at Tarkwa in the Western Region. The overall objective of the 32 pages Operational Manual is to ensure that Community Mining Schemes operate in a safe and healthy environment and that their operations are sustainable and environmentally sound,” he explained.

He disclosed that steps had been taken to educate community members on the operational manual, noting that, so far, 150 CMS had been built, and the ministry hoped to build more by 2022 adding that out of the 100 procured “Gold Katcha”, 20 had so far been installed.

“It is intended to provide members of the community with the opportunity to engage in responsible viable, sustainable, and environmentally-sound mining for the benefit of the community,” he added.