Mining Receipts up by 22%

The Chief Executive Officer (CEO) of the Ghana Chamber of Mines, Sulemanu Koney, has disclosed that total fiscal receipts attributable to the mining and quarry sector has gone up by 22% from Ghc1.35 billion in 2015 to GH¢1.65 billion in the 2016 fiscal  year.

This according to him comprise of payments of Ghc399.9 million, GH¢696.9 million, GH¢550.7 million and GH¢0.54 million respectively as Pay As You Earn (PAYE), corporate income tax, royalties among other taxes.

At a day’s training workshop for members of the Journalists for Business Advocacy (JBA) in Accra, Mr. Koney said producing members of the chamber retained some $2.30 billion out of the $3.25 billion realized into the country as mineral revenue, a representation of 70.9%.

He revealed also that the mining and quarry sector has once again assumed the top spot as the highest payer of domestic tax in the country in 2016 based on figures from the Ghana Revenue Authority (GRA). It would be recalled that in the preceding year 2015 the finance and insurance sector occupied the top position as the country’s leading tax payer.

The workshop is an annual collaboration between the Ghana Chamber of Mines and the JBA with the main objective of keeping the media informed of developments in the mining sector, new developments and the way forward.

The CEO said the country’s Minerals and Mining Act (2006), Act 703, and the Minerals and Mining General Regulations (2012), Legislative Instrument (LI) 2173 require, among other things that mining companies procure inputs from Ghana to the maximum extent possible, and that the LI 2173 is a collaborative work between the Minerals Commission, Ghana Chamber of Mines and the International Finance Corporation (IFC) as part of a broad National Supplier Development Programme in the mining industry in 2010.

“A key objective of the programme is to support local enterprises to improve their competitiveness to participate in and take advantage of opportunities in the mining value chain,” he stated, adding that the collaboration has identified about 28 mining inputs which to be sourced locally albeit with varying degrees of quality improvement.

On revenue and merchanise exports, he said in 2015 the mining sector, contributed about 14.4% of government revenue and 34% in terms of total merchandise exports and produced about 3.6 million ounces of gold which resulted in export revenue of about US$3.3 billion.

“Also the same year mining companies repatriated about 72% of foreign exchange into the economy.” He revealed.

On job creation, he said total direct employment by the producing member companies stood at 11,628, representing a 16% increase over the 2015 recorded figure of 9,939. Of this number, he said about over 98% are Ghanaians, further emphasizing the commitment of member companies to make mining more relevant to the people.

 

Source: Jeorge Wilson Kingson || ghananewsonline.com.gh

 

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