Ghanaians encouraged to enter into legal mining
News Date: 12th February 2010
There are policies to encourage Ghanaian investment in mining related and ancillary industries which do not require as much capital injection, Mr Collins Daoda, the Minister of Mines and Forestry, has said.
Mr. Daoda told the house in answer to a question tabled by Mr. Christopher Addae, the Member of Parliament Bibiani Bekwai, on Thursday that areas in which government adopted policies to support Ghanaians to effectively participate in the mining industry were Differential Fees, Local Content, Staffing, and Small Scale mining.
Under differential Fees, he said government had operated a differential mineral right fee structure which required Ghanaians to pay an average of 10 per cent of what foreign applicants paid, a total of some 200 exploration right holders, Ghanaians account for about two-thirds (66%), he added.
Mr Daoda said since government saw the mine support sub-sector as an opportunity for local entrepreneurs to readily participate, a legal framework has been provided.
The Minister said two small gold refineries had operated in recent times, one of them -ASAP VASA- was Ghanaian owned and operated and continues to supply the refined product needs of some major local jewelleries, other companies with Ghanaian ownership include Hufra-Compu Techs limited which had a state of the art facility producing all kinds of metal components and
parts while Western castings produced grinding media.
He said the provision of catering, laundry, haulage, transport and security service for the mining are being considered to be reserved for
Ghanaians under the legislative instrument which was currently at the Attorney General's office.
Mr Daoda said government has advanced loan facilities to some well organized licensed and creditable small scale mining in their operations some of which are Konongo, Bolgatanga, Bibiani Mining cooperatives for gold and at Elmina for solar salt winning.
Mr. Isaac Kwame Asiamah, member for Twimah Mponua also asked the Minister when the Nyinahin Bauxite Mining project would take off.
Mr Daoda said four companies have been granted access to the resources area at Nyinahin, they are VIMETCO, Alara, Aluminium Company of
America, and Global Ventures.
He said after cross validation the existing results, the companies may apply for license to mine.
Evaluating the applications of the companies would be done by the Minerals commission and appropriate recommendation would be made to the Minister as required by law, Mr Daoda noted.
He said based on the recommendations of the Minerals commission the Minister may grant a mining licence for the exploration of Bauxite at