Miners return over $3bn

Mining companies returned about $3.2 billion, representing 73 percent of their mineral revenue through the Bank of Ghana (BoG) and the commercial banks into the country in 2012 as against statutory requirement of a minimum of 25 percent.

Toni Aubynn, Chief Executive Officer (CEO) of the Ghana Chamber of Mines, who made this known during a media briefing on activities of the chamber and mining companies, said the mining sector paid GH¢893.77 million in corporate taxes to the Ghana Revenue Authority (GRA) in 2012.

The amount represented 36.98 percent of the total GRA tax collected within the period.

The sector also contributed about GH¢1.46 billion to GRA, representing 27.04 percent of the authority’s total direct tax in 2012.

According to Dr Aubynn, the mining sector continues to be the number one taxpayer and highest contributor to GRA’s domestic collections.

He said the sector voluntarily contributed about GH¢26 million to its host communities and the general public, adding that the companies engaged 21,239 people directly of which 334, representing two percent, were expatriate workers.

Ghana’s cash cost for gold production in 2012 was $809 per ounce compared to the global average cash cost of $744 per ounce.

“Global all-in cost of gold production was up to 11.4 percent from $1,079 per ounce in 2011 to $1,202 per ounce.”

That, he said, reflected a higher rate of increase in total cost of gold production relative to appreciation in average gold price of 6.2 percent over the same period.

With the cumulative effect of recent changes in the mining industry’s fiscal regime and the slide in the price of gold, he said, it would be suicidal for the government to introduce a windfall tax.

As a result, he called on government to rescind its decision to introduce the tax to boost investment.