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1st Vice President urges Government to reduce high cost of doing business

Mr. Eric Asubonteng, 1st Vice President of the Ghana Chamber of Mines

Mr. Eric Asubonteng, 1st Vice President of the Ghana Chamber of Mines

Mining companies operating in Ghana have renewed their plea for government to reduce the relative high operational cost which they say is impacting their activities.

They contend that the development has compelled some companies to relocate to neighbouring Ivory Coast while Burkina Faso and Mali continue to attract new exploration activities compared to Ghana. The 1st Vice President of the Ghana Chamber of Mines, Eric Asubonteng stressed the critical need to address the situation so as to avert devastating impact on the economy.

“The SNL Metals and Mining report indicates that for the past five years, Burkina Faso for instance has obtained a higher exploration budget and activity than Ghana. The data further indicates a sharp increase in exploration spending in Mali and Cote d’Ivoire,” he noted.

“We have seen some mining companies relocate their head office from Ghana to Cote d’Ivoire in recent years,” he added.

Mr. Asubonteng was speaking at the 89th Annual General Meeting of the Chamber in Accra, on Friday, 2nd June, 2017. According to him, the country could be eroded of the global recognition for its mining relevance should government fail to solve the threatening issue.

“We cannot continue to pay lip service to Ghana’s position as a preferred mining destination because we may awaken one day to the realisation that we are falling behind in the perking order.”

Citing some amendments to the Minerals and Mining Amendment Act 2004, Mr. Eric Asubonteng also appealed for economic respite for mining companies.

“If Ghana wants to remain competitive, we must admit that the fiscal regime governing the sector is a disincentive to businesses and investors.”

“It is time for the government to take a position on the issue of royalty payments as has been addressed by the Minerals and Mining Amendment Act 2004 (Act 900) which empowers the sector minister to determine the rates based on the sliding scale approach,” the 1st Vice President of the Ghana Chamber of Mines asserted.

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