Regulating income from the gold sector

The Precious Minerals Marketing Company (PMMC) has taken a bold step

to regulate and control gold export in the country

Ghana is entirely endowed with numerous gold deposits and as a result of this, substantial income has been derived from gold mining to finance numerous developmental projects in the various sectors of the economy.

Some of the developmental projects are building of schools, construction of roads, extension of water supply, health facilities in various parts of the country and the construction of houses, among others.

GOLD EXPORTED OUTSIDE

The mining of gold in the country has been ongoing for over 100 years so when it comes to gold deposits, it has helped the country substantially in its developmental projects.

In spite of this, the exact value or the amount of gold exported outside the country is not known because of certain problems that make it difficult for its exact estimated values. It is in light of this that as a country, we need to take steps to ensure that the exact amount and value of gold exported outside the country is known.

ILLEGAL MINING

Legal and illegal mining take place in the country even though government is taking steps to stop illegal mining.

Government has made it clear that it is not against the mining of gold but rather the illegal manner in which the activity is carried out. This explains why programmes have been rolled out to provide alternative employment for all illegal miners so that they will be encouraged to stop the illegal activity.

REGULATE AND CONTROL

The time has come for the state to take steps to regulate and control all activities related to gold mining so that the exact quantity and value exported out of the country can be known.

This will help in the developmental plans of the country as far as gold mining is concerned.

NEW DIRECTIVE

The Precious Minerals Marketing Company (PMMC) has taken a bold step to regulate and control gold export in the country. The company has directed that beginning October 2022, gold licence holders are mandated to file monthly returns on all gold purchases in the country.

This new directive is in line with the PMMC’s efforts and mandate –- as the sole assayer of gold in the country –- to sanitise, improve and properly regulate the downstream sector of the precious minerals industry.

GOVERNMENT OBJECTIVE

It is also in line with government’s objective to make Ghana a responsible sourcing hub for gold. The directive, which forms part of a review of certain terms and conditions for the sector by the PMMC, will be closely monitored and evaluated – with defaulting licence holders risking non-renewal of their licences.

The gold sector ought to be properly regulated by the PMMC to enable the country to know the exact quantity of gold it is exporting. If this is not done, part of the money derived from gold mining and export will get into wrong hands instead of state coffers for our common developmental agenda.

COLLABORATION

However, to achieve this, the PMMC will have to collaborate with other agencies where necessary so that the attainment of the maximum result for the country will be smoothly effected.

The Ghana Standards Authority (GSA) is properly placed for accurate measurement of the quantity of gold being exported outside the country. Close collaboration with this organisation can, therefore, help the country to know the exact amount of gold exported as well as their value.

QUALITY & QUANTITY DETERMINATION

The cocoa sector, for example, is regulated by the COCOBOD but it collaborates with the GSA to determine the quantity and quality of cocoa beans exported out of the country.

Similarly, the Ghana Export Promotion Authority (GEPA) is responsible for non-traditional exports but it also collaborates closely with the GSA to guarantee quality for the non-traditional export.

ILLEGAL ACTIVITIES

As a country, we cannot look on while the exact quantity of gold exported is not known. If the exact quantity is not known because of illegal activities and inaccurate measurements, then the exact amount of money derived from this activity cannot be known by the state at this time when much revenue is needed to undertake numerous developmental projects for the people.

The PMMC should be supported and encouraged by everyone in the country but they need to seek collaboration with the GSA to guarantee the livelihood and welfare of the present and future generations in this country.

By Dr. Kofi Amponsah-Bediako

Email address/whatsApp number of author:

Pradmat201@gmail.com (0553318911)