The Executive Vice President and Head of Gold Fields West Africa, Alfred Baku has argued that mining companies, particularly, multinationals, require government incentives to support their capital investment and thus enhance their production capacities.
He argued that these interventions are what drives gains in natural resource exploitations.
Recounting strides made in the mining industry, Mr Baku stated that Ghana’s gold industry witnessed a mammoth transformation when the government liberalised the sector to slow for private sector participation.
He disclosed that only 300,000 ounces of gold were produced between 1957 and 1983, by state-owned mines.
He explained that the industry suffered a downturn due to lack of capital reinvestment and expansion.
Addressing journalist at the sidelines of the maiden edition of the Ghana Gold Expo in Takoradi, Mr Baku explained that these shortcomings in the industry, motivated government to consider a more participatory mining regime.
“If we didn’t actually create that enabling environment, if we didn’t have that transformation to bring the multinationals to come in and reinvest these in operations, I think we were actually coming to a halt,” he noted.
He justified that the onset of the multinational mining companies brought about huge capital investments in the industry, and that shot up production levels from the 300,000 to 4.8 million ounces of gold “we experiencing”.
“So without the capital, we actually saw a decline and therefore if we actually create the environment, you will get the multinationals to come.
“When they came, they reinvested and the production that was going down to 300,000 is now 4.8 million” Mr Baku justified.
Mr Baku continued that other countries such as Peru, Gabon, among others, have such a facility to support the mining industry. He emphasized based on these accounts that, the government need to enhance its incentive schemes for mining companies if it expects to earn more from its gold reserves.
He added that the country risk to bear the consequences of capital flight should it fail to create the right environment and incentives to support their operations.
“There is a huge competition for capital…and for countries that will create that environment for them to get a return, then you will bear with me that they will push the capital in there” he noted.
- World Bank classifies Ghana as high debt distressed country; debt to GDP to hit 104%
- In pictures: Hundreds rendered homeless at Ashalaja
- While others mocked me, Seidu Agongo offered to help – Kofi Amoabeng
- ‘Suck a breast within October’ – Health expert advises men
- Police on manhunt for man flogging toddler in viral video
- Child Rights International places ¢10k bounty on head of man flogging toddler in viral video
- President’s son loses army post after Twitter spree
- Pay compensation to affected customers – PURC orders ECG
- E-levy: GRA blames charging entities for wrongful deductions
- ‘I sold my mansion for me not to go broke’ – Kofi Amoabeng
- Consumer Protection Agency raises alarm on sale of already registered SIM cards
- President’s speech did not offer any new direction in fighting galamsey – Daryl Bosu
- Samuel Antwi beats Johnson Acquah to win the Translight Solar Tennis Super Cup
- Two sisters settling family feud on Big Chef
- Minority in Parliament pressures government to announce producer price of cocoa for 2022 season
- 25 killed as bus plunges into gorge in India
- Masloc begins training for its staff as nationwide digitisation rollout
- GFA launches Talent Identification and Development Programme
- Illegal miners torture suspected thieves on site
- Suicide is never an option – Funny Face
- #NoToGalamsey: The pledge to put my presidency on the line wasn’t bombast or recklessness – Akufo-Addo
- 2014 World Cup was problematic – Kwesi Nyantakyi
- Driving Schools Association to collaborate with MTTD to clamp down on unregistered drivers
- GOIL donates hospital beds to Asuom Health Centre in Eastern region
- Government not against mining but can’t accept ones that destroy our country – Akufo-Addo