Roundup: Ghana urges strategies to sustain investments in mining sector

The Ghanaian government urged mineral-rich African countries here on Wednesday to introduce measures that can attract more investments into the mining sector in the face of gold price drops.

Toni Aubynn, Chief Executive Officer (CEO) of Ghana's Mineral Commission, made this call while opening the 8th West and Central Africa (WACA) Mining Summit and Expo.

Although it is difficult to control price volatility of minerals, especially gold, as most producing countries are price takers, Aubynn said there are other strategies to increase the mineral production base of the country to sustain investments in the mining sector.

He explained that a balance between the benefits that must accrue to mineral-rich countries and the dividends that investors must receive was what would sustain the industry.

The government of Ghana recognizes "the need to maintain a careful balance between incentives granted to mineral sector investors and benefits that accrue from the exploitation of our mineral resources," according to him.

"Therefore, to ensure a win-win and mutually beneficial situation for both investors and government alike, a comprehensive review of the mining fiscal and regulatory regime has been carried out."

He urged mining firms to ensure strict compliance with the Local Content regulations of their host countries.

The summit, under the theme "Recalibrating for Growth", attracted mining sector operators which mounted stands to exhibit their products and services.

Ludivine Wouters, Managing Partner of Latitude Five, a London-based Mining investment advisory group which also offers services to mining firms in the West African sub-region, said service sector development should be a critical factor in the local content regulations.

She argued that local content should be about employment, training; and services, adding that for each direct employment opportunity in the mining company, there were eight, nine or 12 employed in services.

"For me, services is where the debate is because having strong service providers, strong suppliers locally, is how you can grow the skills base; grow the revenue for the country and increase the local participation base in mining operations," Wouters stressed.

Nouho Kone, Special Advisor to the Ivorian Chamber of Mines, also averred that human resource was critical to the local content policy development and implementation.

"Local content stands and starts with the persons. If I am working for a company, I am a local content, local expertise, local intellectual, and local whatever it is, but local person first before we come to local suppliers and local furnishers," Kone argued. Endit