Mining firms retain $3.2b revenue in 2012

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Isaac Kusi, Bronx, NY. 10 years ago

If we had the State Gold Mining Corp. we could have retained $3.2b for Ghana.

If we had the State Gold Mining Corp. we could have retained $3.2b for Ghana.
BRAVEBOY 10 years ago

The gold mining sector in Ghana is said to be reeling under the pressure of the country’s unfavourable fiscal environment and declining gold price and is set to face a series of unpleasant consequences.

These include th ...
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The gold mining sector in Ghana is said to be reeling under the pressure of the country’s unfavourable fiscal environment and declining gold price and is set to face a series of unpleasant consequences.

These include the laying off of about 4,500 workers, reduction in taxes payable to government, loss of foreign exchange to the Bank of Ghana, curtailment of exploration activities, termination of supplier’s contracts and review of capital investments.

The CEO of the Ghana Chamber of Mines, Dr Toni Aubynn, revealed this when he briefed the media in Sunyani.

The Gold Mining Sector in Ghana is notable in the scheme of things in the country.

The country is currently ranked the World’s Eighth Leading Producer of Gold according to the Goldfields Mineral Survey, with an output of 96.8 tonnes.

Ghana Chamber of Mines is a private sector minerals industry association with a vision of being a respected, effective and unified voice for the mining industry.

Its objectives include promoting and protecting the interest of the Mining Industry as well as provide thought leadership for the solution of national issues related to mining among others.

The Chamber periodically reaches out to various segments of society to explain the complexities in mining to the ordinary man.

Its latest outreach in the Brong-Ahafo Region was very well attended by media representatives in the Region, who were the sole invitees.

The CEO of the Chamber, Dr Aubynn in his address stated that the Mining Industry is crucial to Ghana as one of the main contributors of revenue to the National coffers for the past few years.

He revealed for instance that in 2012, the sector emerged the number one tax payer and the highest contributor to the Ghana Revenue Authority (GRA’s) domestic collections.

He said the Mining sector paid about GH¢ 1.46 billion, representing 27% of the GRA’s Total Direct Taxes in 2012.

The Sector again contributed GH¢ 893.77 million in Corporate Taxes, representing 36.98% of total company tax collected last year.

But Dr Aubynn was quick to add that the sector is currently in crises thanks to high labour costs, relatively high cost of energy, high and still increasing fees and charges, the uncompetitive tax regime and the declining gold price on the international market.

He said the combined effect of all of this is the unpleasant actions that the Industry has to take.

The CEO revealed that Newmont for instance plans to lay off between 30 to 40% of its exploration staff, while generally companies are reviewing exploration, production expansion plans as well as green fields with preferences for those that provide optimal returns to the Companies.

Dr Aubynn used the occasion to debunk allegations that the Mining Industry repatriates all their local mineral earnings abroad.

He said nothing could be further from the truth since even though the law calls for 25% retention, statistics clearly show that mining firms on the average maintain 73% of mineral revenues in the Country.

GBC
ras 10 years ago

out of 3.2 billion earned you 'freely' gave 26 million to the communities on whose land u r mining n think u deserve gratitude? that is 0.1% my foot. bloody thieves

out of 3.2 billion earned you 'freely' gave 26 million to the communities on whose land u r mining n think u deserve gratitude? that is 0.1% my foot. bloody thieves
AGBELI KUMORDZI 10 years ago

GHANA NEED TO REFORM THE MINING INDUSTRY.TAKE A LOOK AT SOUTH AFRICA THAT THE BRITISH MINING THE GOLD
AND THE BLACKS ARE STILL POOR.

GHANA NEED TO REFORM THE MINING INDUSTRY.TAKE A LOOK AT SOUTH AFRICA THAT THE BRITISH MINING THE GOLD
AND THE BLACKS ARE STILL POOR.
Enoch. O 10 years ago

Dr. Aubynn, are you a manager for the mining corporations, or a manager for the Ghana government? I hope you are not siding with the foreign Mining Corporations so as to be Knighted by the Queen for doing a good job for the E ...
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Dr. Aubynn, are you a manager for the mining corporations, or a manager for the Ghana government? I hope you are not siding with the foreign Mining Corporations so as to be Knighted by the Queen for doing a good job for the Empire like your predecessor. A windfall tax should be on the books now. All the government has to do, is to set at what price a windfall sets in. As much as Ghana produces gold and other minerals, I doubt if we have any say in the price setting of any of the minerals we produce. The Western world sets the price of commodities to suit themselves, and as such I think we should cover our backsides so we are not taken by surprise. REFORM THE WHOLE MINING INDUSTRY NOW.Long live Ghana.
KANAWU 10 years ago

ONE GOOD THING KUTU ACHEAMPONG DID: GHANAIANS SHOULD OWN 55% OF ANY INVESTMENT IN GHANA. WE NEED TO REINSTATE THAT POLICY. WHEREBY GHANA CANNOT INVEST 55% IN THE INVESTMENT, LET GOLD AND THE OIL ROT IN OUR LAND.

ONE GOOD THING KUTU ACHEAMPONG DID: GHANAIANS SHOULD OWN 55% OF ANY INVESTMENT IN GHANA. WE NEED TO REINSTATE THAT POLICY. WHEREBY GHANA CANNOT INVEST 55% IN THE INVESTMENT, LET GOLD AND THE OIL ROT IN OUR LAND.
Kiddo 10 years ago

We should increase our tax and royalties to all mining industry. The Kenyans have done it recently why can't we?
I guess our court's and leadership are corrupt thinking of their greedy pockets.

We should increase our tax and royalties to all mining industry. The Kenyans have done it recently why can't we?
I guess our court's and leadership are corrupt thinking of their greedy pockets.
BRAVEBOY 10 years ago

Another treacherous Ghanaian. When their bellies are full, Ghana is fine and business is good and the poor people have to sweat to eat.

When will these educated fools understand the game is over.

Another treacherous Ghanaian. When their bellies are full, Ghana is fine and business is good and the poor people have to sweat to eat.

When will these educated fools understand the game is over.

Mining firms retain $3.2b revenue in 2012

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