The General Secretary of the Small-Scale Miners Association, Godfred Armah has stated that the dominance of foreigners in Ghana’s mining sector results in significant revenue losses for the country.

He explained that Ghana only receives tax revenue and emphasized the need to review national policy to address the extent of foreign control in the mining industry.

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This concern comes in light of a report from the Business and Financial Times, which reveals that Chinese investors are interested in acquiring stakes in several major mining operations, including the Akyem Mines. Although there has been no official communication regarding this interest, it has sparked debate about the future of Ghana's strategic resources.

Speaking on JoyNews AM Show, Godfred Armah said, “How are we going to benefit if foreigners are dominating the sector? Looking at the entire supply chain, how do we position ourselves? If we do not address this, we will end up with foreign domination, and all the profits will go elsewhere because everything is exported raw. If you look at the gold, whatever is exported is raw. So, what is the value for the country? Is it only the royalties or the taxes we receive?”

Mr Armah suggested that a radical approach is needed to address the situation, such as implementing a policy that requires miners to refine a portion of the gold they extract and supply it to local jewellers.

He explained that currently, most local jewellers source their gold from Dubai rather than directly from miners because they need refined, standardized gold to produce high-quality jewellery.

“But if you do not have it and all your gold is going out unrefined, at the end of the day, what is the value? We need to understand that once we allow foreigners to take over our mines, we will not benefit easily.”

The Co-Chair of the Ghana Extractive Industry Transparency Initiative (GHEITI), Dr Steve Manteaw expressed similar concerns.

He noted that the heightened involvement of foreigners in the sector is largely due to the lack of credit facilities available to local miners to finance their operations.

He pointed out that it is not only Chinese nationals who are involved in mining in Bole, but also people from Burkina Faso, Mali, Niger, and other countries who are also financing illegal mining activities.

“They bring the money and have a certain informal arrangement with you: whatever gold you produce, you sell to them. When they get the gold, they do not actually export it through approved channels, such as Kotoka International Airport. Instead, they are so close to the border with Ivory Coast and Burkina Faso that they cross the border with it, causing us to lose all the revenue opportunities associated with their activities.”