The Minerals Commission has commenced the implementation of the fifth edition of the new procurement list which now has 50 items for the provision of goods and services.
This replaces the fourth edition of the procurement list which was published by the Commission in early 2022.
According to the Chief Executive Officer of the Minerals Commission, Martin Kwaku Ayisi, the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) came into force on 22 December 2020.
The purpose of the regulations among others is to promote job creation using local expertise, goods and services in the mining industry and their retention in the country. The law is also to achieve the minimum in-country spending for goods and services and create mining and mineral-related industries that will sustain economic development.
Pursuant to Regulation 7 of L.I. 2431, the Commission is required to publish a local procurement list that stipulates the goods and services with Ghanaian content which are to be procured in the country. Regulation 7(3) of L.I. 2431 further states that the Commission shall review the procurement list annually.
For instance, all mining companies are expected to ensure that at least 60% of financial services including revenue from the sale of minerals go to the local Banks. He indicated that the receipts from the sale of minerals are over US$ 5 billion, a figure which is likely to go up significantly as new mines come on stream and the existing ones expand their operations.
The local banks such as CBG, National Investment Bank, Ghana Commercial Bank and Agricultural Development Bank are likely to benefit greatly. The same applies to insurance services which also require a minimum of 60% of all insurance and reinsurance placements be made with insurance companies exclusively owned by Ghanaians.
Mr. Ayisi, in a statement, said the increase in the items on the list comes at a time when receipts from mineral revenues and investments hover around US$ 10 billion.
"For instance, there are four huge new projects with an investment of about US$ 1.7 billion. The new projects are the US$ 850 million Ahafo North gold mine project by Newmont Ghana Gold Limited, US$ 500 million gold project currently under construction by Cardinal Namdini Mining limited in the Talensi District of the Upper East Region, the US$ 200 million gold mine to be constructed in the Upper West Region and the US$ 125 million lithium project at Ewoyaa in the Central Region," he said.
Additionally, Mr. Ayisi stated that some mines are undertaking expansion and redevelopment. The undergoing expansion includes the Ahafo South mine of Newmont which now covers the Subika underground. Golden Star Resources is spending about a billion dollars to expand the Wassa underground mine.
The mines being redeveloped are the Anglogold Ashanti Obuasi mine where a billion dollars has been expended and the Bibiani mine of Mensin Gold Ghana Limited which started production in the last quarter of 2022. The redevelopment of the Bibiani mine is over US$200 million dollars
"It is the expectation of the Minerals Commission that these investments will support the growth of the economy and boost local participation under the new procurement list." Mr Ayisi added.
Latest Stories
-
Reality zone with Vicky Wireko: Painting Ghana purple: Be aware, May is month of mental health awareness
5 mins -
Prof Opoku-Agyemang’s integrity is admirable – Inusah Fuseini
18 mins -
Your reign has been a beacon of wisdom – Alan Kyerematen tells Asantehene
19 mins -
Akufo-Addo’s driver wins La Dadekotopon NPP primary
21 mins -
Education Minister must channel resources to rebrand basic public schools into tackling critical needs – Minority
24 mins -
CAFCC: “Dreams need to score early to unsettle Zamalek” – Former Zamalek striker Felix Aboagye
2 hours -
GHS launches mobile app to counter misinformation about vaccines
2 hours -
Election 2024: Care Ghana warns EC of recruiting political actors as Returning Officers
2 hours -
Mohammed Kudus gets 5th Premier League assist as West Ham hold Liverpool
2 hours -
Religious support source of my success – Asantehene
2 hours -
Sierra Leone energy minister resigns over electricity crisis, as power returns to capital
2 hours -
EC accuses Bright Simons, IMANI Africa of peddling falsehood
3 hours -
GRA/SML contract: Akufo-Addo has whitewashed the KPMG report – Inusah Fuseini
3 hours -
USM Alger receive warm welcome at Oujda Airport ahead of game against RS Berkane
4 hours -
2023/24 Ghana Hockey League to kick-off this weekend
4 hours