Year in review: Gold purchasing programme will bring revolution to small-scale mining – BoG Governor

Governor of the Bank of Ghana, Dr Ernest Addison

Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has said the central bank views the gold acquisition programme as an efficient way of growing the foreign exchange reserves of the country to supplement the traditional ways that Ghana has built reserves over the years. Among others, this will help reduce our dependence on more expensive ways of building reserves.

He said this during the launch of the God Purchasing Programme this year.

Dr Addison stated that the Gold purchasing programme will bring revolution to the small-scale gold mining sector. Ghana’s domestic purchasing programme for gold has the potential to improve the small-scale gold mining sector by guaranteeing, that they receive a fair purchasing price for their gold, provide an incentive to formalise and move away from damaging environmental and social practices.

“It would also lead to a route to formalise and improve ability to sell into formal gold markets and thereby reduce their vulnerability to illegal actors in the domestic and international gold supply chains.

“Before I conclude, let me acknowledge the support of His Excellency the Vice President, Dr. Mahamudu Bawumia who got this programme started.

“I would also want to acknowledge the collaborative roles played by other key stakeholders, including the Ghana Minerals Commission, PMMC, the Ghana Chamber of Mines, and a selected number of licensed gold aggregators. Their efforts in bringing us to this stage is duly recognized. On that note, I declare the Bank of Ghana Gold Acquisition programme duly launched,” he said.

The Vice President Alhaji Dr. Mahamudu Bawumia recently said in conjunction with BoG, government was going to start a deliberate gold purchase programme which will target purchasing gold from the Small Scale Mining sector.

He stated that after series of deliberations, the Bank of Ghana has been persuaded to start this programme which is going to be the first of it’s kind in history, adding that the programme when started, will be a boost for the Small Scale Mining sector as purchases made will build the country’s gold reserves.

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He made this known at the maiden edition of the Responsible Small Scale Mining Awards held at Alisa Hotel on Wednesday 22nd December, 2021.

The Vice president described the Mining award ceremony as a historic occasion which he is very proud to be a part of.

He opined that he sees the award to be something peculiar because  “all too often, our problem solving turns to focus more on chasing and punishing wrong doers and not recognising and rewarding those who do right and this is what makes this award different”.

“The award recognises players in small Scale Mining sector who despite the temptation to join the wrong doing bandwagon, have decided to stay within the relevant regulatory framework for the country and to operate responsibly,” he explained.

He further stated a number of ways that Ghana has benefited from Small Scale Mining over the years, touting that he believes Small Scale Mining has contributed immensely to Ghana becoming the leading Gold producer in Africa.

” As we all know, Ghana’s Gold production has increased significantly over the past few decades making it the leading Gold producer in Africa. The contribution of Small Scale Mining to this trend is commendable. Currently, it is estimated that the Small Scale Mining contributes about 35% to Ghana’s total Gold production and 35% is huge.”

He added “We have also persuaded the Bank of Ghana and they have also accepted to start a gold purchase programme , for the first time in the history, a deliberate gold purchase programme targeting purchasing gold from small scale mining sector.

“This is going to be a boost for the small scale mining sector when the Bank of Ghana comes in to buy some of your outputs to build the country’s gold reserves.”

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Dr. Mahamudu Bawumia however cautioned that regardless of the many advantages of Small Scale Mining, if the act is not done responsibly, it can and will damage the environment.

He, therefore called on the Miners to Mine responsibly to help save the environment and the country’s natural resources.

The Vice President commended highly the efforts of the Minister, Hon. Samuel A. Jinapor and his two Deputy Ministers for their leadership of the natural resources sector.

He added that the Minister has since his assumption of office brought a renewed approach to the process of ending galamsey through diverse initiatives. He sighted an example  of how the Minister made a passionate plea for the 3% withholding tax being paid by Gold producers to be slashed down to 1.5%.

He went on to applaud the organisers of the programme for working tirelessly to achieve such a great feet for the mining sector and for Ghana.

He also employed the opportunity to congratulate the winners of the various categories of Awards, saying that the award should be a motivator to other Miners to do better at their jobs and also keep the environment safe while at it.

The Minister for Lands and Natural Resources Hon. Samuel A. Jinapor in his welcome address, expressed his profound gratitude to the Vice President of the Republic and to the Chief of Staff for taking time off their very busy schedule to honour his invitation and for all the support.

He also sent out his appreciation to leadership and members of the Ghana National Association of Small-Scale Miners (GNASSM) for partnering with the Ministry of Lands and Natural Resources, to institute this all-important award scheme and for their tremendous support of Government’s quest to sanitise the small-scale mining industry.

The Minister also disclosed that in the coming year, the Ministry, will continue to pursue measures that are necessary to restore sanity into the small-scale mining industry.

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In furtherance of this, he said they have already engaged ADB Bank to establish a Minerals Development Unit at the Bank, which is to provide financial support to small scale miners. Adding that the initiative, is expected to roll out early next year.

The Minister intimated that as Community Mining Scheme remains one of the surest ways of tackling illegal mining, they will continue to promote the Community Mining Scheme to serve as a model for all small-scale mining operations.

Hon. Jinapor gave the assurance that the Ministry will ramp up their regulatory efforts and continue to partner with the leadership of the Ghana National Association of Small Scale Miners to weed out recalcitrant, illegal miners out of the industry, whilst encouraging and supporting genuine legal miners who have regard for our national environment.

“We will never relent on this effort, and, God willing, and with your support, we shall realise the vision of President Akufo-Addo by constructing, here in Ghana, a viable, sustainable, orderly and environmentally-sound small scale mining industry. Together we can, and let us get this done” He concluded.

Mr. Godwin Armah, General Secretary of the Ghana National Association of Small Scale Miners (GNASSM) added his words congratulations to the awardees saying ” Your victory is a symbol of the true reflection of our work and telling the whole world that Ghana is on course to revitalise the Small Scale Mining sector”

He thanked the organisers of the programme and  advised  miners that acquiring mining licences for their operations alone will not keep them in the industry but rather compliance to the legal framework is what will sustain their businesses in the future.

Also in attendance at this colourful event was the Hon. Chief of Staff, Madam Akosua Osei-Opare,  captains and players in the  mining sector, parliamentarians and  among others.

By Laud Nartey||Ghana