Ghana is building an integrated and inclusive gold industry – Bawumia

The government is putting in place many measures to stimulate job creation in an integrated and inclusive manner along the gold mining value chain, said Vice President Dr Mahamudu Bawumia.

This integrated and inclusive chain will bring together large-scale, small-scale sustainable community miners, as well as other stakeholders such as refiners, buyers and sellers of jewelry in an effort to increase the value Ghana derives from its raw materials and will also provide clarity on the volumes and value of the materials extracted.

The Vice President shed light on the government’s plans when he delivered the opening speech at the opening ceremony of the Ghana Gold Expo 2021 (Ghana Mining Week ’21), a forum on mining policy , in Takoradi on Thursday, July 1, 2021.

The two-day forum brings together key stakeholders, including the Minister of Lands and Natural Resources, Samuel Abdulai Jinapor; members of the parliamentary select committee on mining, large and small scale miners, traditional leaders and members of the diplomatic corps to deliberate and chart a sustainable path for Ghana’s gold industry.

Speaking on the challenges of the mining sector and the measures put in place to deal with them, Vice President Bawumia said that “it is well known that the increase in illegal mining has, without a doubt, was fueled not only by unemployment but also by the desire of average community members to get a feel for minerals.

“In this regard, the government is implementing numerous measures to stimulate job creation in an integrated and inclusive manner throughout the gold mining value chain.

“I am reliably informed by the Minister of Lands and Natural Resources that 20 community mining programs have started, each employing approximately three thousand (3,000) people. We plan to have 100 of these programs by the end of the year, and with 3,000 employees each, this will have a significant impact on tackling unemployment in mining communities.

“The government is providing them with equipment and new technology that require very little water, sometimes just a barrel, to extract the gold from the ore without using zero mercury or cyanide. This is sustainable mining that solves the galamsey problem, and with ready-made buyers such as the Bank of Ghana and local refineries being established, we can confidently say that we are building a integrated and inclusive gold industry, ”he explained.

Disclosing that artisanal small-scale mining accounts for 50% of Ghana’s gold production, Vice President Dr Bawumia said the Bank of Ghana, through the new gold purchase program, will focus its focus on purchasing in this sector as it strives to strengthen future macroeconomic management. and strengthen the Cedi with real gold.

“Ghana is Africa’s largest gold producer, overtaking South Africa in 2019. But the Bank of Ghana only holds 8.7 tonnes of physical gold in its reserves. For almost three decades, almost 60 years, we have not added an ounce of gold to our reserves. In comparison, Ghana’s gold reserves are equivalent to only 6.9 percent of South Africa’s gold reserves of around 125.3 tonnes.

“Thus, the decision of the Bank of Ghana in June 2021 to implement a gold purchase program is very welcome. The benefits are enormous, and we can only hope and encourage the Bank to continue this initiative.

The establishment of local refineries, such as that of the Precious Minerals Marketing Company (PMMC) and the Gold Coast Refinery, would further expand the market for sustainably mined gold, fill a missing part of Ghana’s extractive sector while ensuring the growth of local refining production, said Dr Bawumia.

Expense leaks

The private sector is also supported to build its capacity and reverse the significant expenditure leakage from the national economy through the import of several tools and equipment that Ghana has the capacity to produce, he said.

“We are equipping the private sector with the means to fill these leaks and build local capacities for such production. To do this, we work closely with industry and academia, such as the University of Mines, to equip young professionals with the skills necessary to operate competitively in the sector and to carry out innovative research.

With all of these measures in place, the future of Ghana’s gold sector is bright, said Dr Bawumia.

“I believe that with our structured efforts to integrate the mining industry to propel local industries, the entire mining value chain would be poised to create jobs, and we intend to tap into it to develop our economy. In the future, Ghana cannot and will not continue to be mere exporters of minerals and other raw materials to other countries. “