Business News of Tuesday, 5 December 2017
Statistics released by the Ghana Chamber of Mines shows that the mining sector contributed about US$1.59 billion (70.8%) to the national economy between the years—2012 to 2016.
“On the average, more than US$ 2.5 billion is spent annually on non-labour inputs, of which US$ 1.59 billion (70.8%) is spent in country as the distribution of Mineral Revenue to the Ghana Revenue Authority between the years- 2012-2016,” Chief Executive Officer of the Ghana Chamber of Mines, Mr Sulemanu Koney, has revealed.
Speaking in an interview with Today on the side-line of the launch of an online portal by the Ghana Chamber of Mines to provide information to industry players on opportunities available to local businesses, Mr Koney noted that the mining sector in Ghana contributed significantly to the Ghanaian economy in 2016 fiscal year.
According to him, the sector in 2016 contributed about GH¢1.6 billion to the Ghana Revenue Authority (GRA), representing 15.8 per cent of the GRA’s total direct taxes for the year. He told journalists in Accra recently that: “The sector contributed about GH¢1.6 billion to the GRA, representing 15.8 per cent GRA’s total direct taxes for the year.
He mentioned that the mining sector was the leading tax payer and contributor to GRA’s domestic collections in 2016, adding that the sector contributed about GH¢1.64 billion to GRA, representing 15.8% of GRA’s Total Direct Taxes in 2016. “Gold Fields and Newmont Ghana Gold Limited (NGGL), member companies of the Chamber, were adjudged the largest and second largest tax payers respectively in Ghana in 2016 by GRA,” he mentioned.
He added: “The industry accounted for 46% of the country’s gross export revenue in 2016, reinforcing its position as the leading source for forex and a major contributor to the country’s balance of payments. “For the first time since 2011, the provisional balance of payments in 2016 recorded a surplus.
This largely reflected an improvement in the trade balance driven by a rise in gold export receipts and a fall in oil import prices. “Producing members of the Chamber returned USD 2.3 billion, representing 71% of their mineral revenue (USD3.2 billion) through the Bank of Ghana (BoG) and the commercial banks in 2016. “This has significant bearing on the international reserve position of BoG and the stability of the monetary system as a whole,” he added.
He, therefore, asked the government to ensure efficiency in the management of mineral resources. “The government should enact a law for the management of mineral revenue to promote sustainability and efficiency in the expenditure of revenue attributable to mining. “While government recently enacted a law (Minerals Development Fund Act, 2016, Act (912) to govern the transfer of mineral royalty revenue to the District Assemblies (DA), its provisions are yet to be implemented after more than a year of the President’s assent: Constitution and inauguration of Board, Establishment of Mining Community Development Scheme.
He urged the government to put in place the required structure to support the implementation of Act 912 to facilitate development.