President Nana Addo Dankwa Akufo-Addo has disclosed that under the Domestic Gold Purchase Programme (DGPP), the country’s gold reserves have increased from eight to 14 tonnes, as at the end of the 2022, 18 months after its implementation.
The President disclosed this yesterday when he opened the two-day Natural Resources Stakeholder Dialogue, under the theme “Harnessing our Natural Resources for our Sustainable Collective Good” at the Kempinski Hotel in Accra. It was organised by the Graphic Communications Group Limited and the Ministry of Lands and Natural Resources.
He indicated that the programme had culminated in an agreement with large-scale mining companies, whereby the Bank of Ghana (BoG) purchases 20% of their refined gold in cedis. He said that had eased the pressure on the Cedi.
“For well over the century that we have been mining gold, our gold reserves, between the 1980s and June 2021, were just eight tonnes (8t),” the President pointed out.
Importance
President Akufo-Addo said the importance of natural resources to humankind cannot be overemphasised.
He, however, regretted that even though a place like Obuasi had hosted the richest gold mine in the world over the years, it still remains largely underdeveloped, adding that “The story is no different from other areas such as Tarkwa, Prestea, Wassa, and Bibiani, which have for centuries been the attraction for adventurers and fortune seekers.”
“The truth is that we have not always done well in negotiations with the companies that exploit our natural resources. Among other things such as corruption, incompetence and political instability, we have mostly been short-sighted in these negotiations, and therefore end up settling for less,” he added.
He noted that extensive tax and royalty exemptions, intolerable labour practices and lack of value addition in-country had resulted in extraordinary profits to mining companies, at the expense of African countries.
Harnessing resources
The President called on stakeholders, policy makers and the entire citizenry to harness the country’s natural resources for sustainable development.
This, he said, requires all to ensure that the exploitation of these resources does not destroy the natural environment that provides people with subsistence.
“We must ensure that mining contracts address issues of environmental protection, the payment of adequate compensation to affected communities and the development of the areas where these resources are derived. We must find a lasting solution to illicit financial flows associated with the natural resources sector,” he added.
He reiterated the need to tackle head-on the issues of illegalities in the extractive sector, including illegal mining and illegal logging.
“This is a collective responsibility. Government has its role, but Government’s efforts will come to naught if we all fail to do our part in this exercise. This is why Government has prioritised local content and local participation, as well as value addition in the natural resources sector to ensure that we derive optimal benefits from these God-given resources,” he noted.
Commendation
The President commended the Ghana Chamber of Mines, the Ghana Institute of Foresters, the Ghana Institution of Surveyors, and all other stakeholders for their cooperation in the implementation of strategic mining policies.
He disclosed that through the Ghana Integrated Aluminium Development Corporation (GIADEC), government is working to ensure value addition to bauxite resources, through refining, smelting, aluminium production, as well as production of other downstream aluminium products.
“I have been briefed that the Four Project Agenda of GIADEC, which I launched in 2021, is progressing steadily, with Project 2, 3 and 4 approved by Cabinet and are at different stages of implementation. Project one is still under negotiations, and will soon be put before Cabinet,” he indicated.
The President noted that the implementation of this Four Project Agenda is expected to optimise production in the upstream industry, and spur production and job creation in the downstream sector.
“With an estimated bauxite resource base of over nine hundred million metric tonnes (900,000,000Mt), this sector can serve as an anchor for industrialisation if we continue to pursue value-added policies. We are doing the same with our iron ore resources, through the Ghana Integrated Iron and Steel Development Corporation (GIISDEC), initiated in 2019,” he indicated.
Commitment
For his part, the Minister of Lands and Natural Resources, Samuel Abu Jinapor, said “Government is building a viable, sustainable, effective, efficient and environmentally-sound natural resources sector that generates employment, and contributes meaningfully to the development of our country.”
Mr Jinapor said while it is the responsibility of Government, through his outfit, to regulate and manage the utilisation of these resources, “the important role other stakeholders play in the discharge of this mandate cannot be underestimated”
“It is our hope that, through this timely Dialogue, we can forge a common path to manage sustainably our natural resources, add value to them, retain the highest end of the industry, contribute to the national economy, whilst, at the same time, protecting our environment for our collective good,” he stated.
He reiterated his outfit’s commitment to working with all stakeholders to construct a sustainable and value-added natural resources sector, anchored on transparency, integrity and utmost good faith for the benefit of the Ghanaian people.
