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Business News of Tuesday, 12 May 2015

Source: GNA

Mining industry facing declining grades – Study

A study by Steward Redqueen and the African Centre for Economic Transformation has revealed that the Ghanaian mining industry is faced with declining grades.

The study said there are lower prices, which would affect company revenue, employment, social investment and related service industries over time.

The study commissioned by the Ghana Chamber of Mines in partnership with the International Council on Mining and Metals was to determine the extent to which mining has contributed to Ghana’s development.

Dr Rene Kim, a Partner, presenting the findings of the study, said it was to help the economic and social contributions over the life cycle of mining in Ghana.

He said seven mining companies contributed to the study, including Adamus mining, Chirano Gold mines, Gold fields Ghana and Golden Star Resources.

He said the sampled companies supported the economy with 625 million dollars of local procurement every year and created 90 jobs.

Dr Kim said the country needed a long term development plan for its mining industry to enable it provide sustainable developments.

He said the study covered production levels, capital investment, tax payments, employment, procurement and community spending over a forward-looking time frame.

“On average 110,000 people are employed directly and indirectly annually,” he said.

Mr Suleman Koney, the Chief Executive Officer, Ghana Chamber of Mines, expressed the hope that the study would inform policy direction concerning the industry.

He said it requires a deliberate strategic policy to transform the mining sector for national development.

“It also requires a development plan at the local level to drive the transformation of communities,” Mr Koney said.

He said there should also be a framework for the utilisation of mining resources for national development.