Minerals Commission fights PMMC

Today can report of a raging dispute between the Minerals Commission of Ghana (MCG) and the Precious Mineral and Marketing Company (PMMC).

The fight, the paper gathered, is as a result of the Minerals Commission’s decision to "secretly" extend the license of Miramex Company Limited, a minerals marketing company owned by one Maged Kodaih, a Lebanese national, to export and market the nation’s precious minerals at the detriment of PMMC, a state-owned company.

The extension which was granted from April 23, 2014 by the Minerals Commission of Ghana amounted to usurpation of the powers of the PMMC.

Per the current activity of Miramex Company Limited, that is buying gold from small scale miners, the PMMC is the mandatory body to grant the foreign-owned company the permit and not Minerals Commission.

Miramex Company Limited are again not supposed to do third party exports of gold services but investigations established that the Lebanese company was illegally engaging in that activity to the disadvantage of PMMC, which is supposed to perform the same activity while officials of Minerals Commission looked the other way unconcerned.

Our checks at the PPMC revealed that the Miramex Company Limited is not on the list of companies permitted to trade in gold business with small scale miners in the country.

Investigation further revealed that the authorised business of PMMC among others is to buy and sell precious minerals; to appoint licensed buyers for the purchase of precious minerals produced by small-scale miners; to export gold on behalf of third parties for a commission, to promote the development of precious minerals and the jewellery industry in Ghana and to do all such things as are indicated or conducive to the attainment of its objectives and functions.

The paper was reliably informed that the erstwhile Kufuor’s NPP administration withdrew the services of Miramex Company Limited, which was thought to be competing keenly with Precious Minerals Marketing Company in the country.

It was further gathered that the then Minister of Mines and Natural Resources, Mr. Kwadwo Adjei-Darko, had indicated earlier that investigations into the activities of the Lebanese Company did not encourage the government to guarantee Miramex to continue its operations in the minerals market.

The company was licensed during the Jerry Rawlings administration. The NPP government which took over power in 2001 later suspended its license. The government was said to have been concerned about the activities of the foreign company.

"We do not want to encourage Sierra-Leone and Liberia situation in Ghana," Adjei-Darko had said.

Some industry players have raised concerns over the latest development whilst asking whether the Minerals Commission officials were not privy to the circumstances that led to the withdrawal of Miramex Company’s license.

The situation has caused anxiety among the players who suspect someone was shielding Miramex Company Limited to perpetrate an illegality against the state without complying with the license granted them to deal with big mining companies but have ventured into small scale activities.

The PMMC was established in 1963 as Ghana Diamond Marketing Board charged with the responsibility for the purchase and marketing of the country's diamonds.

In 1965, by Legislative Instrument (LI) 401, the Company was incorporated as a State Owned Enterprise (SOE). With the promulgation of the diamonds decree (NRCD 32) in 1972, LI 916 was enacted to change the company's name to Diamond Marketing Corporation.

In 1989, PNDC Law 219 was enacted to yet again change the company's name to the Precious Minerals Marketing Corporation.

Finally in year 2000, it was converted by Act 461 (Statutory Corporations Conversion to Companies Act) to a Limited Liability Company to operate under the Ghana Companies Code (Act 179 of 1963) as Precious Minerals Marketing Company Limited.

The senior officers of Miramex Company Limited failed to pick their calls when Today called them to get their side of the story. Test messages sent to their phone numbers were equally not replied.

Officials at the Minerals Commission confirmed the extension of license for the Lebanese firm. However, they refused to comment on whether they had not overstepped their bounds when they issued permit to Miramex.

When this reporter quoted the mandate of the PMMC as set out by law, the officials again refused to comment.