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2019 Annual Report Report of The Ghana Chamber of Mines

Large-scale gold output from Ghana increased by six per cent from the previous year's output, the Ghana Chamber of Mines has disclosed.

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100% found this document useful (1 vote)

2K views156 pages

2019 Annual Report Report of The Ghana Chamber of Mines

Large-scale gold output from Ghana increased by six per cent from the previous year's output, the Ghana Chamber of Mines has disclosed.

Uploaded by

Kweku Zurek

We take content rights seriously. If you suspect this is your content, claim it here.

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2020

2019 ANNUAL
REPORT
Promoting Environmentally and
Socially Responsible Mining
THE GHANA CHAMBER
OF MINES

2019
ANNUAL REPORT

GHANA CHAMBER OF MINES

PAGE

ANNUAL REPORT 2019

2019 ANNUAL REPORT

TABLE OF CONTENTS
Profile of the Chamber 04
Membership Structure and Governance 05
Message from the CEO 10
Presidential Address 12
External Relations, Communications 22
Environmental Sustainability 34
Administration and Human Resources 36
Analysis, Research and Finance 44
ECOWAS Federation of Chambers of Mines Report 57
Legal and Legislative Affairs 60
Relevant Laws to the Mining Industry 66
Performance of Ghana's Minerals Industry 70
Financial Report 106
Membership Register 136

CONTACT DETAILS

Location: No.18 Gulf Street, South Legon,

P. O. Box 991, Accra, Ghana
Digital Address: GA-2382234

Postal Address: P. O. Box GP 991 Accra

Telephone Numbers: 0302 760652, 761893, 765308
Fax Number: 0302 760653
E-mail: [email protected]
Website: www.ghanachamberofmines.org
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GHANA CHAMBER OF MINES

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ANNUAL REPORT 2019

92nd Annual General Meeting
Friday 29th May, 2020

11 : 30am
Annual General Meeting (Chamber Members & Guests)

Welcome & Introduction of Chairman

Apologies
Conﬁrmation of Minutes
Auditors Report
Conﬁrmation of Auditors

Presidential Address
Mr. Eric Asubonteng, President

Statement by Special Guest

Hon. Kwaku Ansomah -Cheremeh,
Minister, Ministry of Lands & Natural Resources

Closing Remarks
Adjournment

Questions & Answers Session

GHANA CHAMBER OF MINES

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ANNUAL REPORT 2019

Chamber’s Proﬁle

The first offices of the West Africa Chamber MISSION

of Mines, which gave birth to the Ghana
Chamber of Mines, were set up in 1903 with
To represent the
the principal objective of advancing and mining industry in Ghana
protecting the mining interests of the using the resources and
shareholders. capabilities of its
The Chamber was composed of directors of members to deliver services
the mining companies in London, who, that address members’,
among other functions, had power to government and community
promote or oppose any legislative needs, in order to enhance
measures or petition government and
administrative bodies in the colony on any development.
matters which directly affected mining
interests.

On 6th June 1928, the Gold Coast Chamber

of Mines was incorporated as a private VISION
company and operated at Tarkwa in the
Western Region. On Ghana's attainment of To be a respected,
independence on 6th March 1957, the name effective and unified
of the Chamber was altered to the Ghana voice for the mining
Chamber of Mines. By a special resolution
on 6th May 1960, the form of the objects of
industry
the Chamber was also altered, and on 14th
Fe b r u a r y 1 9 6 4 , t h e C h a m b e r w a s
converted under the Companies Code 1963
(Act 179) into a Company Limited by CORE VALUES
Guarantee. In 1967, the registered offices Ÿ Honesty
of the Chamber moved to the national Ÿ Transparency
capital, Accra. Ÿ Good Governance
Ÿ Good Corporate Citizenship
The Chamber has since remained a Ÿ Commitment
voluntar y private sector employers' Ÿ Unity
association representing companies and
organizations engaged in the minerals and
mining industry in Ghana. OBJECTIVES
Ÿ Promote and protect the interests of
Programmes and activities of the Chamber the mining industry;
a r e f u n d e d e n t i r e ly b y i t s M e m b e r Ÿ Promote and protect the image of the
companies, which are responsible for mining industry;
producing a large proportion of Ghana's Ÿ Establish and maintain effective
minerals. membership governance;
Ÿ Provide thought leadership for the
solution of national issues related to
mining.
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ANNUAL REPORT 2019

Membership Structure & Governance

There are five broad categories of membership, namely, Represented, Pre-production, Contract
Mining, Exploration, and Affiliate Categories.

Represented Category:
This is a class of membership for Mining Companies in commercial production.

Pre-Production:
It is a class of membership for Mining Companies, which are about to go into commercial
production. They become Represented Members after being in commercial production for one
year.

Contract Mining Category:

This is a class of membership for companies providing contract mining services.

Exploration Category:
It is a class of membership for companies involved in reconnaissance and prospecting.

Affiliate Category:
This is a class of membership for mining and minerals related service organizations, also
known as the Service Industries.

The Chamber operates through an extensive Committee system, which enables the specialist
expertise and the intellectual capital within the Member Companies to be tapped in a collective
effort to enhance the overall business environment in which the mining industry can have the
opportunity to thrive and flourish.

Associate Member Institutions

These are institutions whose operations and mandate are integral to the promotion and
sustenance of the mining industry in Ghana.

Executive Committee
The Executive Committee comprises the President of the Chamber, two Vice-Presidents, the
Chairmen of the Contract Mining Group, the Affiliate Committee, the Legal and Legislative
Affairs Committee, Building Committee, Finance & Budget Committee (co-opted), the Chief
Executive Officer of the Chamber, and a Member of Council who is a Registered Level A member.

The Council
The Council is the highest governing body of the Chamber and is made up of all Chief
Executives/Managing Directors of Represented Level A and level B Members, the Chairmen of
all Chamber Committees, as well as a representative each of the Membership categories. Each
Council Member can nominate an alternate. The President of the Chamber chairs the Council.
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ANNUAL REPORT 2019

Management

Membership of Council in 2019

Dr. Ben Adoo Amb. J. Bentum-Williams Mr. Kweku Andoh Awotwi Mr. Daniel Owiredu
Honorary Member Honorary Member Honorary Member Honorary Member

School in the Jirapa District of the Upper West On this note, I wish to assure you that the
Region; the provision of medical equipment to Secretariat will continue to count on the support
the Bimbilla Government Hospital; support for of member companies and key partners in
the National House Chiefs; to the provision of carr ying out its mandate of promoting
electricity for the people of Kwame Aninkrom in environmentally and socially responsible mining
the Sefwi Wiawso Municipality through the in Ghana. As the world confronts the Covid-19
patronage of the Nexans Foundation, we pandemic, we will endeavour to leverage key
augmented the social support services rendered partnerships within and without the industry in
to host communities by our member companies. order to surmount the adverse effects of this
scourge on our country and our industry.
Our goal is to demonstrate how mining can
positively impact national development with the Thank you
right framework and partnerships in place. With
the establishment of the Minerals Development Sulemanu Koney
Fund Secretariat as well as the inauguration of Chief Executive Ofﬁcer
its board, we look forward to an expansive spate
of development in mining communities to
support livelihoods and the local economies.
12

GHANA CHAMBER OF MINES

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ANNUAL REPORT 2019

Eric
Asubonteng

President
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GHANA CHAMBER OF MINES

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ANNUAL REPORT 2019

Presidential Address
It is a sign of the times that we are holding this The fact that Ghana, is a well-acknowledged
Annual General Meeting in these most unfamiliar mining destination with an incredible ancient and
circumstances. This fulfilment is yet another modern mining tradition, naturally imposes very
indication of our proven resilience. Indeed, high global expectations on the mining industry.
although Covid-19 has had some impact, the As such, in-country, the industry is focused on the
notion of social distancing and the other protocols maintenance and deepening of its socio-economic
have not overwhelmed our industry. impact at both the macro and micro levels. We
have as a cardinal factor, the determined
Fortuitously, this AGM ends a decade of mixed promotion of the general wellbeing of host
fortunes for the mining industry and marks at the communities which should remain unmatched by
same time, the commencement of a new era for any other sector in the economy.
the global mining community. It is therefore with
delight and honour that I now formally present to The need to further stimulate linkages with other
you, the Chamber's Annual Report for the year sectors of the economy in order to boost the value
2019. Needless to say, I am profoundly grateful to chain and support local industries has also
you all for the collaborative effort we put together become central to the objectives of the members
in successfully scaling great heights of challenges of the Chamber in the past few years. In response
and in creating more value for our stakeholders. to these expectations, the Chamber has
increasingly committed its members not only to
Throughout the last decade, and particularly, the the development of mining as a specialised
p e r i o d u n d e r r e v i e w, t h e C h a m b e r h a s business, but also to the support of proactive
endeavoured to pursue a strategic plan aimed at sustainability practices that seek to bring
consolidating the interests of member companies economic relevance through wealth creation and
while fulfilling its objective of providing thought the equitable distribution of same among all
leadership for the resolution of issues relating to stakeholders.
mining, both within Ghana and the entire West
Africa sub-region. We are in pursuit of the arduous task of
transforming Ghana's mining industry, and by
To have successfully survived the bewildering flux extension the sub region, into an engine of
of events and circumstances that have impacted economic transformation that is more human
the mining industry over a period of more than 90 centred and future oriented. As part of this
years is also indicative of the Chamber's strategy, the Chamber continues to build on the
compelling relevance as a progressive institution. pioneering efforts it fostered towards the
Over the years, we have strategically re-modelled maintenance of a sub-regional Chamber. We are
our operations to meet the needs and expectations aware that our quest, particularly in our own
of our member companies without jeopardising country, will not be easily achievable without the
the progress and wellbeing of our host support of all stakeholders; especially the
communities in Ghana. government and host communities. Our success is
therefore predicated on the creation of abiding
In the past year, we planned collectively as a relationships based on perceivable trust and
Chamber to refashion the otherwise routine mutually beneficial outcomes. In this manner, we
manner our operations are conducted. This was to hope to continue together with all relevant
ensure that the Chamber continued to be abreast authorities and agencies, the transformation of
of innovative and global trends in addressing Ghana into a modern mining destination with real
operational challenges of our member companies value for all stakeholders.
within the context of our local circumstances.
Overview of mining in Ghana and 2019
Such innovative processes required that we performance
actively engaged our stakeholders in very I would now like to share some thoughts on the
transparent and candid settings. As a result, the performance of the mining industry both from the
p a s t 1 2 m o n t h s h a v e b e e n p a r t i c u l a r ly global and national perspectives. Ghana's mining
challenging, and the Chamber has yet again been industry continued to anchor the economy and
compelled to re-appraise its strategic imperatives various aspects of our social lives through
to meet the emerging challenges in the general sustainable operations. As a result, we believe the
environment in which it functions. mining industry continued to serve as an
indispensable ballast and therefore remained a
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ANNUAL REPORT 2019

critical part of the socio-economic growth of the million carats in 2019 due to a 41 per cent fall in
nation in 2019. production. The persistent decline in purchases
of diamonds largely reflects low recoveries from
We also recall that in the year under reference, small-scale winners and the continued shut
unfavourable developments in China, Indonesia, down of the only large-scale producer of
South Africa, and Mexico gravely impacted gold diamonds in Ghana.
production and resulted in a slump in global
output. However, growth in production in other Impact on the economy
major gold mining jurisdictions, including West Data from the Ghana Revenue Authority (GRA)
Africa's impressive output, ensured that global showed that the mining sector's total fiscal
production did not hit rock bottom in 2019. In the contribution, at 7.7 percent of domestic revenue
event, Ghana remained the leading producer of in 2019, was the second highest after the
gold on the African continent since taking over financial and insurance sectors. This
from South Africa in 2018. notwithstanding, the share of the mining and
quarrying sector in total direct domestic receipts
I am happy to recall that in the year under mobilized by the GRA improved by 70 per cent
review, the large-scale mining sector's gold from GH¢ 2.36 billion in 2018 to GH¢ 4.02 billion
output for Ghana increased from 2.807 million in 2019. This growth was occasioned by the
ounces in 2018 to 2.989 million ounces in 2019, a simultaneous increase in production and price of
6 per cent increase from the previous year's some minerals, particularly, gold. Likewise, the
output. However, gold assayed by the Precious expiration of the Stability Agreements between
Minerals Marketing Company (PMMC) on behalf the Government of Ghana and some mining
of Licensed Gold Exporting Companies, which companies further resulted in changes that
represents small-scale production, decreased boosted revenue for the State.
from 1.984 million ounces in 2018 to 1.588
million ounces in 2019. Specifically, corporate tax receipts from the
sector, saw an 89 per cent increase to GH¢ 2.27
This 20 per cent decrease in the small-scale billion in 2019 from the previous GH¢ 1.20 billion
mining sub-sector resulted in a decline in total in 2018. Moreover, the income tax (Pay As You
gold production from 4.792 million ounces in Earn) receipts of mining sector employees rose
2018 to 4.577 million ounces in 2019. from GH¢ 457.16 million in 2018 to GH 736.26
Consequently, the large-scale sector improved in 2019, representing a growth rate of 61.1 per
on its contribution to national gold production, cent. In a similar fashion, mineral royalty
from 59 per cent in 2018 to 65 per cent in 2019 payments increased from GH¢ 705.26 million in
whereas the small-scale sector accounted for 2018 to GH¢ 1.01 billion in 2019 representing a
35 per cent of national gold production in 2019; a 42.7 per cent leap while other taxes stood at GH¢
decline from 41 per cent in 2018. 0.67 million in the same period.

External Relations And Communications Department
1.0 Introduction as it enables businesses to voluntarily exercise
The External Relations and Communications unit responsibility and accountability for the
of the Chamber is responsible for planning and economic, social and environmental impacts of
implementing stakeholder relationship their business decisions. Responsible
management and institutional communication businesses have an obligation to contribute to
programmes designed to effectively engage social progress beyond their core mandate of
interest groups and individuals who are integral enhancing shareholder value.
to the sustenance of member companies’
operations. In this regard the Chamber’s CSI programmes
had two broad objectives:
Specifically, the unit is mandated to harmonise Ÿ To provide support for education, research
the promotion of sustainable mining practices in and other charitable projects which are
Ghana. The unit performs its role by directing the beneficial to the host communities and the
Chamber’s advocacy and visibility plan to Republic of Ghana; and
promote transparency in the industry as well as Ÿ To promote and support the training of
address negative perceptions and untruths. The personnel and provide technical and other
unit operates under the guidance of the Public forms of assistance to promote sustainable
Relations Committee, made up of mining operations in Ghana.
representatives of producing member
companies and chaired by the Chief Executive The Chamber also pursued a good number of
Officer of the Chamber. strategic social interventions across the country
to provide support for institutions that required
2.0 Public Relations Committee essential amenities and equipment. This was in
The committee met three times in the course of line with the Secretariat’s CSI plan. This section
the year. All meetings were held at the provides in-depth reports on these activities and
Secretariat of the Chamber in Accra. Key among interventions.
the issues addressed in the year were:
3.1 Ghana Chamber of Mines’ Tertiary Education
2.1 Engagements Fund
The Committee extensively analysed the need to The Ghana Chamber of Mines launched the
strategically engage key audiences to showcase Ter tiar y Education Fund to suppor t the
the sustainable practices of member companies. development of high calibre mining
The committee pursued meaningful professionals and global leaders in the
engagements with groups from civil society, the sustainable exploitation and management of
media, as well as host communities to ensure natural resources. The Fund, which will be
that all misconceptions and misgivings are administered in phases, would see producing
addressed to deepen collaboration. To achieve member companies of the Chamber contributing
this, mine tours for selected groups and media 400,000 US dollars annually for five years to
discussions on selected media platforms across support tertiary education, giving priority to the
the country were implemented. University of Mines and Technology (UMaT).

2.2 Corporate Social Investments (CSI) Additionally, contract mining and explosives
initiatives manufacturing member companies will each
Industry perception reviews undertaken by the contribute 3,000 and 2,000 dollars, respectively,
Chamber and some member companies annually for five years. Launching the TEF on
identified a lag in the communication of the social 16th October, 2019, the President of the
support extended to host communities by Chamber said the Fund is expected to mobilise a
member companies across the countr y. total of 442,000 US dollars in 2020 alone. He
Pursuant to this, the Committee designed stated that the Fund was primarily set up to
modalities to propagate these initiatives and to identify and train the best brains, support
thematically demonstrate the impact of the research into technologies and introduce
social interventions across the board. innovations that would directly benefit the
mining industry in Ghana.
3.0 Corporate Social Investments
Corporate Social Investment (CSI) is an Specifically, it shall be applied to support
essential component of the work of the Chamber teaching and learning, industry related research
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1.0 Introduction Committee and the rest of leadership of the

ANNUAL REPORT 2019

ANNUAL REPORT 2019

Technology (UMaT) and Noguchi Memorial 2.3: Engagements on Local Reﬁning of Doré
Institute for Medical Research (NMIMR)
commenced a study on the topic: “Health risk
assessment studies in the Ghanaian mining
environment” in 2016.

Following the receipt of the required approval from

the Ghana Health Service, the research team led by
the Vice Chancellor of UMaT, Prof. J.S.Y. Kuma,
collected hair, blood and nail samples from
employees of nine (9) mining companies and
residents of eight (8) mining communities in 2018.
Some of the samples were however contaminated
as a result of unanticipated logistical constraints. The Leadership of Gold Coast Reﬁnery with some members of
the Ghana Chamber of Mines

Newmont Ghana Gold Limited 1st Golden Star Wassa Limited 1st
(Ahafo Mine)
Golden Star Bogoso Prestea 2nd Newmont Ghana Gold Limited 2nd
Limited (Ahafo Mine)
Adamus Resources Limited 3rd Asanko Gold Limited 3rd
Ghana Manganese Company 4th Abosso Goldﬁelds Limited 4th

In an effort to instill the culture of safety in the country's population, the Chamber also liaises with the
Ghana Education Service to organize essay contests for students within the operational footprint of
producing member companies. Similar to the Inter-Mines First Aid and Safety Competition, each
producing member company presents two (2) candidates for the zonal edition of the Inter-Mines Essay
Competition. Typically, the candidates presented by the mines are selected through a local level essay
competition which is supervised by officials of Ghana Education Service (GES). The students who
emerge as first and first runner-up in each of the three (3) zones qualify to participate in the national
edition of the Inter-Mines Essay Competition.

Following a keen contest, a student of Ntronang Presby Basic School in the catchment community of
Newmont Ghana Gold Limited (Ahafo Mine), Ms. Barbara Anokye, emerged as the overall best
candidate. Apart from receiving educational materials at the ceremony to climax the Inter-Mines First
Aid and Safety Competition, she and the ﬁrst runner-up, Master Ebenezer Arthur, who was sponsored
by Abosso Goldﬁelds Limited, were also recognized at the Ghana Mining Industry Awards. In addition,
their respective schools were presented with various educational materials.

GHANA CHAMBER OF MINES

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ANNUAL REPORT 2019

5.8.2.1: Issue paper on ﬁscal concerns of member were published on the website of GHEITI and
companies subsequently launched by a Deputy Minister of
It is a compilation of all ﬁscal-related issues that Finance, Hon. Kweku Kwarteng, on 11th March,
impinge on the operations of member companies 2020.

5.8.2.2: Position Paper on Local

Refining
In response to government’s
attempt to compel producing
member companies to refine their
dore in-country, the Secretariat
undertook an analysis of the merits
and challenges associated with the
proposed policy. The Chamber was
of the view that the proposal was
generally well-intended but noted
that there were a number of
technical hurdles that have to be
surmounted before its Participants with the Deputy Minister of Finance at the Launch
implementation, including the of the 2019 Reconciliation Report
attainment of a London Bullion
Market Association certification by a 6.2: Workshop on Mainstreaming of Standards of
local refinery. Against this backdrop, the Extractive Industry Transparency Initiative
Chamber decided to support the local refineries As part of its efforts to reduce the expenditure
to obtain the relevant certifications. associated with the publication of Reconciliation
Reports, the Board of Extractive Industry
5.8.2.3: Position Paper on Listing of Mining Transparency Initiative (EITI) took a decision to
Companies on Ghana Stock Exchange mainstream its standards into the routine
The managers of the Ghana Stock Exchange operations of reporting entities. In that regard,
requested the government to mandate mining the International Secretariat collaborated with
companies to list a proportion of their shares on its equivalent in Ghana to host meetings with the
the Exchange. While recognizing the benefits various constituencies and Steering Committee of
associated with listing, the Chamber also raised GHEITI.
grave issues on how the proposal could
deleteriously impact on the share prices of mining 6.3: Extractive Industries Transparency Initiative
companies if the process was not handled with (EITI) Global Conference
tact and circumspection. The Chamber was part of a delegation from
Ghana, which was led by H.E. the Vice President,
6.0: Ghana Extractive Industries Alhaji Dr. Mahamudu Bawumia, that participated
Transparency Initiative in the eighth (8th) global conference of EITI in
In line with its value of promoting transparency Paris, France, from 18th to 19th June, 2019.
and being an avid member of the Initiative, the
C h a m b e r p a r t i c i p a t e d a c t i v e ly i n t h e The other delegates include the Deputy Minister
engagements of Ghana Extractive Industries of Energy, Dr Amin A. Adam, Co-Chairman of
Transparency Initiative (GHEITI) and supported Ghana Extractive Industries Transparency
the latter’s Secretariat with office logistics in Initiative (GHEITI), Dr Steve Manteaw,
2019. Some of the GHEITI-led activities that the Coordinator of GHEITI, Mr Abdul Razak
Chamber took part in are as follows: Mohammed Bashiru, and representatives of
parastatals, civil societ y organizations,
6.1: Preparation of 2017/2018 Reconciliation Development Partners, Ghana National
Reports Petroleum Corporation and International Oil
The Chamber liaised with other members of the Companies (IOCs). The event brought together
Multi-Stakeholder Group to assist GHEITI to over 1,000 global stakeholders to deliberate on
procure an Independent Administrator to emerging issues in the natural resource sector
prepare the 2017/2018 Reconciliation Reports for and adopt a new EITI standard for implementing
the mining and oil/gas sectors. The reports, which countries.
were produced by Messrs Boas and Associates,
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Ecowas Federation Of Chambers Of Mines Report
1.0: Introduction ensure that mining contributes to broader
The ECOWAS Federation of Chambers of Mines transformation and development of host
was formed in 2016 to foster closer collaboration communities.
and alliance in the mining sector within the West
Africa sub-region. The initiative had become 2.0: Interaction with the ECOWAS
imperative, considering the importance of mining Commission
to the economies of ECOWAS members and
similarities in the challenges facing the industry in
the sub-region. The primary objective of the
Federation is to advocate for the enactment of
policies to promote mining across the sub-region.

The Secretariat of the EFECOM is hosted by the

State Interests and Governance Authority Act, Section 99 to cover other forms of illegal mining
2019 (ACT 990) in addition to illegal small scale mining. Section 2
The State Interests And Governance Authority of the Act amended Section 99 of Act 703; Sub-
Act, 2019 (Act 990) was passed to establish the clauses 1 to 5 increases the penalty for persons,
State Interest and Governance Authority (SIGA) both locals and foreigners, who engage in illegal
as a Government body to ensure that the mining operations. Sub-clauses 6 and 7
investments made by the state in State-Owned criminalise activities of persons who provide
Enterprises, Joint Venture Companies and Other various support services to illegal miners while
State Entities yield positive returns to citizens. Sub-clauses 8 to 10 provide for the seizure and
disposal of equipment and product used for
The Chartered Institute of Bankers Act, 2019 illegal mining operations.
(ACT 991)
The Chartered Institute of Bankers Act, 2019 Luxury Vehicle Levy (Repeal) Act, 2019 (ACT
(Act 991), puts the institute in a better position to 996)
determine the standard of knowledge and skill to The luxury vehicle levy was introduced in the
be attained by a person who seeks to practise Luxury Vehicle Levy Act, 2018 (Act 969) to apply
banking in the country. When operationalised, from August 2018. The Act imposed an annual
the Act supports the Chartered Institute of levy based on the engine capacity of vehicles.
Bankers to set standards and ensure the However, the Act has been repealed by the
observance of ethical standards and Luxury Vehicle Levy (Repeal) Act, 2019 (Act
professional conduct among members of the 996).
banking profession in the country. Furthermore,
it also provides for the Code of Ethics of the Communications Service Tax (Amendment) Act,
Ghana Association of Bankers. 2019 (ACT 998)
The Communication Service Tax (Amendment)
Companies Act, 2019 (ACT 992) Act, 2019 (Act 998) amended the principal
This Act amends and consolidates the law legislation, the Communications Service Tax Act,
relating to companies; to establish the Ofﬁce of 2008 (Act 754) to provide for an increase in the
the Registrar of Companies; and to provide for Communication Service Tax from 6% to 9% and
related matters. Except where otherwise for related matters.
provided, this Act applies to companies formed in
the Republic, whether before or after the Vigilantism and Related Offences Act, 2019 (ACT
commencement of this Act. This law does not 999)
affect the validity of anything done before the This law was passed to among other things
date came into operation. It repealed the curtail political thuggery and rid the country’s
Companies Act, 1963 (Act 179). In addition, it body politic of rancour. The Vigilantism and
has introduced a number of innovations into the Related Offences Act, 2019 applies to a person
company law of Ghana. who participates in the activities of a vigilante
group that is associated with, related to,
National Road Safety Authority Act, 2019 (ACT connected or afﬁliated to a political party; a
993) person who acts as a land guard and a person
This is an Act to establish a National Road Safety who engages in other acts of vigilantism. It also
Authority to develop and promote road safety in seeks to disband political party vigilante groups
the country, to co-ordinate and regulate within one month of it becoming law and spells
activities, procedures and standards related to out prison terms for persons convicted of
road safety and to provide for related matters. vigilante offences, with a maximum of 15 years.

Minerals And Mining (Amendment) Act, 2019 Statistical Service Act, 2019 (ACT 1003)
(ACT 995) The Statistical Service Act, 2019 (Act 1003)
This Act amends the Minerals and Mining Act governs the Ghana Statistical Service (GSS),
,2006 (Act 703) to increase the penalties for a which is established as an autonomous Public
person who sells or buys minerals without Service institution with a Board of Directors who
licence or without valid authority, or without report directly to the Office of the President. The
valid authority; to increase the penalties for a Service is mandated by law to provide official
person who engages in illegal mining or mining statistics on a broad range of issues. The law
contrary to a provision of the Act and to provide broadly defines the role of the GSS as being
for related matter. Section 1 of the law amended responsible for the collection, compilation,
Section 81 of Act 703 to extend the application of analysis, publication and dissemination of
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official economic, social, demographic and accountants, auditors, tax consultants, tax
governance issues on the population and advisors and paymasters to take note and comply
businesses. It is responsible for the collection, accordingly.
c o m p i l a t i o n , a n a ly s i s , p u b l i c a t i o n a n d
dissemination of statistics. Act 1003 also serves Appropriation Act, 2019 (ACT 1008)
as a key mechanism for harnessing the changes in The Appropriation Act, 2019, (Act 1008)
the ways we collect and produce statistical mandated the Ministry of Finance to issue the
information at the national level. Budget Implementation Instructions in
accordance with the Public Financial
Special Import Levy (Amendment) Act, 2019 Management Act, 2016 (Act 921), to guide all
(ACT 1004) Ministers (Principal Account holders) and Chief
The Special Import Levy (Amendment) Act 2019 Directors (Principal spending officers) in the
(Act 1004) amends the Special Import Levy Act, implementation of the 2020 Budget.
2013 (Act 861) to extend the period of application
to the year 2024 and provide for related matters. The Ghana Health Service and Teaching Hospital
The levy is imposed on imported goods at the point (Amendment) Act, 2019 (ACT 1010)
of entry and is calculated on the CIF value of the This is an Act to amend the Health Service and
goods. The purpose of extending the levy is to Teaching Hospitals Act 1996 (Act 525) to provide
raise funds to support the Government’s effort to for a new membership of governing boards and for
implement social programs to improve the well- related matters.
being of lower income citizens. For the purpose of
enforcing the recovery of the Levy, the relevant Tree Crops Development Authority Act, 2019
provisions in the Income Tax Act, 2015 (Act 896) (ACT 1010)
as amended relating to the collection, This law is an important step towards realizing
enforcement, refund and penalties, shall be the establishment of a Tree Crops Development
applied. The Special Import Levy is 2% computed Authority in Ghana. The Act covers diverse issues
on the Cost, Insurance and Freight value of the and provides for the setting-up of the Tree Crops
goods imported. Development Authority as a corporate body;
regulates the management, production,
Value Added Tax Amendment Act, 2019 (ACT processing and trading in tree crops. It also has
1005) provisions on policy issues and related matters.
This law exempts the supply of goods and
services such as the importation of plant and National Fiscal Stabilization Levy (Amendment)
machinery designed specifically for use in the Act, 2019 (ACT 1011)
automobile industry by an automobile The National Fiscal Stabilization Levy
manufacturer or assembler who is registered (Amendment) Act, 2019 (Act 1011) extended the
under the Ghana Automotive Manufacturing period of application of the National Fiscal
Development Programme (GAMDP); importation Stabilization Levy of 5% levy imposed on profit
of kits by automobile manufacturer or assembler before tax of specified companies and institutions.
who is registered under the GAMDP; and the
management fees charged by a local fund The companies and institutions liable to pay the
manager for the management of a licensed levy are banks (excluding rural and community
private equity fund, a venture capital fund or a banks), non-bank financial institutions, insurance
mutual fund from the payment of Value Added companies, telecommunications companies
Tax (VAT). liable to collect and pay the communications
service tax, breweries, inspection and valuation
Income Tax (Amendment) Act, 2019 (ACT 1007) companies, companies providing mining support
This law amends the Income Tax Act 2015, (Act services and shipping lines, maritime and airport
896) to revise the rates of tax for the chargeable terminals. The purpose of extending the levy is to
income for a resident individual for a year of raise funds to support the Government’s effort to
assessment; provide for a tax holiday for implement social programs to improve the well-
automobile manufacturers and assemblers and being of lower income citizens.
for related matters. These amendments took
e f f e c t f r o m 1 s t J a n u a r y, 2 0 2 0 . T h e (B) SUBSIDIARY LEGISLATION
Commissioner-General requests the general Aircraft Accident and Serious Incident
public particularly taxpayers in the informal Regulations, 2019 (L.I. 2375)
sector, businesses, business owners, directors of The law created the Accident Incident Bureau to
finance, tax professionals, accounting staff, manage investigations of civil aircraft accidents
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ANNUAL REPORT 2019

and serious incidents in Ghana and requires Public Financial Management Regulations, 2019
airline operators to immediately notify (L.I. 2378)
authorities of an accident or serious incident. Its This is a law enacted in exercise of the power
remit also covers state-registered aircraft that conferred on the Minister responsible for
are involved in incidents or accidents outside the Finance by Section 101 of the Public Financial
country. The regulations also provide for the Management Act, 2016 (Act 921) and in
establishment of a database of facts and figures consultation with the Public Procurement
relating to accidents and serious incidents for Authority, these Regulations were made to apply
the first time. This will enable officials to do to a covered entity, a public corporation and a
useful analysis on actual or potential safety state-owned enterprise.
concerns. It also helps in the identification of any
necessary corrective measures. These Biosafety (Management Of Biotechnology)
legislative changes are meant to improve Regulations, 2019 (L.I. 2383)
aviation safety oversight, enhance the powers of This legislative instrument was enacted in
aviation officials and address inefficiencies in the exercise of the power conferred on the National
industry. Biosafety Authority with the prior approval in
writing of the Minister by subsection (1) of
Office of the Administrator Of Stool Land section 40 of the Biosafety Act, 2011 (Act 831)
Regulations, 2019 (L.I. 2377) and in consultation with the Minister responsible
This is a law that was enacted in exercise of the or Health and Food and Agriculture.
powers conferred on the Minister responsible for
Lands and Natural Resources, acting in Land Use and Spatial Planning Regulations,
consultation with the Administrator of Stool 2019 (L.I. 2384)
Lands by section 15 of the Office of the This law was enacted in exercise of the power
Administrator of Stool Lands Act, 1994 (Act conferred on the Minister responsible for town
481). planning by section 197 of the Land Use and
Spatial Planning Act, 2016 (Act 925).

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ANNUAL REPORT 2019

Performance Of The Mining Industry In 2019
Review of Global and Domestic Economic Developments in 2019
The deceleration in global economic activity, which commenced in 2018, persisted on the back of a
confluence of economic and political setbacks as well as natural disasters. The prolonged trade dispute
between the United States and China as well as uncertainties emanating from the United Kingdom’s exit
from the European Union combined with an escalation in geopolitical tensions and adverse weather
conditions to slowdown growth in measured economic output in advanced economies from 2.2 per cent in
2018 to 1.7 per cent in 2019. The spill over effects of the hikes in trade tariff between United States and
China as well as country-specific systemic problems dampened economic growth in emerging markets
and developing economies (EMDEs). The economies’ gross domestic product (GDP) growth rate reduced
from 4.5 per cent in 2018 to 3.7 per cent in 2019. On account of the concurrent contraction in output in
both advanced economies and EMDEs, the growth rate of the world’s value of final goods and services
decreased from 3.6 per cent in 2018 to 2.9 per cent in 2019.

A string of synchronized lower-than-anticipated economic growth outturns in the major advanced

countries counterbalanced the modest expansion in the economies of Japan and United Kingdom. For
instance, the world’s largest economy, United States, recorded a downturn in the growth rate of
measured economic output from 2.9 per cent in 2018 to 2.3 per cent in 2019. According to the Bureau of
Economic Analysis, the country’s GDP growth slowed down on account of declines in non-residential
ﬁxed investments, exports and private consumption expenditure, which were partly offset by growth in
state and federal government spending.

In the same vein, the European Commission’s statistical authority, Eurostat, reported that the growth
rate of the area’s economic output decreased from 1.9 per cent in 2018 to 1.2 per cent in 2019. The
reduction in the Area’s output was largely a reﬂection of the decline in economic activities of its dominant
member states; Germany, France, Italy and Spain. The contraction of Germany’s economy, from 1.5 per
cent in 2018 to 0.6 per cent in 2019, was occasioned by aftershocks of the trade dispute between the
United States and China, uncertainty arising from the procedures related to the United Kingdom’s
departure from the European Union and transition of its automotive industry from fossil fuel to electric
powered vehicles. On the other hand, protracted industrial dispute over pension reforms as well as lower
consumer and investment spending culminated in a consecutive year-on-year decline in growth rate of
economic activities in France. The country’s GDP growth rate reduced from 1.7 per cent in 2018 to 1.3 per
cent in 2019. In the case of Italy, which experienced a recession, persistent budget overruns as well as
reduced personal and investment expenditures were the primary factors for the slump in its GDP growth
rate from 1.7 per cent in 2018 to 1.3 per cent in 2019. Further, political unrests and weak consumer
spending contributed partly to the nosedive in Spain’s GDP growth rate from 2.4 per cent in 2018 to 2.0
per cent in 2019.

Although the uncertainties brought in the wake of the United Kingdom’s withdrawal from the European
Union was expected to have an adverse impact on economic activities, the country rather recorded an
upturn in GDP growth rate. Data from the United Kingdom’s Ofﬁce of National Statistics shows that GDP
growth rate improved marginally from 1.3 per cent in 2018 to 1.4 per cent in 2019. The unanticipated
expansion in output was mainly attributable to an increase in government expenditure, net exports and
gross capital formation, which outweighed the decline in household expenditure. Similarly, the economy
of Japan expanded from 0.3 per cent in 2018 to 0.7 per cent in 2019 in spite of the curtailment in economic
activities that was induced by the battery of natural disasters that pummelled the island in 2019.
According to the country’s Cabinet Ofﬁce, the acceleration in GDP growth rate was due to an increase in
private spending, net private inventories and government expenditure, which compensated for the
decline in net exports.

Output growth in emerging markets and developing economies (EMDEs) retreated on the back of broad-
based low economic growth outturns in the leading countries. The EMDEs largest country, China,
recorded a contraction in net exports and private investments. These developments, which were partly
the consequences of China’s trade dispute with the United States, resulted in a decline in GDP growth
from 6.6 per cent in 2018 to 5.6 per cent in 2019. Likewise, economic activities in Sub-Saharan Africa
reduced from 3.3 per cent in 2018 to 3.1 per cent in 2019. The region’s lethargic growth outturn was
primarily attributable to the contraction in output of its dominant economies such as South Africa, which
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outweighed the modest improvements in GDP growth rate recorded by some countries such as Nigeria
and Ghana.

The outlook for global economic growth in 2020 remains tilted southwards due to the outbreak of the
new strain of Coronavirus in the latter part of 2019. The pandemic, which started in the city of Wuhan in
the Hubei province of China, has also evolved into a global economic conundrum due to the restrictions in
mobility that were imposed on impacted countries to help curb the spread of the virus. However, the
economic impact of the health crisis is expected to vary across countries depending on parameters such
as number of infected population, quality of healthcare infrastructure as well as timeliness and
appropriateness of government response.

In the advanced economies, most governments have outlined ﬁscal incentives and expansionary
monetary measures to neutralize the contractionary impact of the health crisis on ﬁrms and household
expenditures. Notwithstanding, the relatively higher rates of infection and mortality in advanced
economies suggest that the curtailment in economic activities will persist longer, with its associated
deleterious impact on growth. As result, the International Monetary Fund (IMF) projects that GDP
growth in advanced countries will contract to -6.1 per cent in 2020 as shown in Figure 1.0.

Figure 1.0: Growth Rates of Gross Domestic Product in Selected Economic Blocs and Countries

8
6
4
2
0
%

-2
-4
-6
-8

2018 2019 2020 (Projected)

Source: Author's construct based on data from the International Monetary Fund (2020)

Similarly, the governments of EMDEs have also rolled out quantitative easing policies such as direct
ﬁscal support to small businesses and reduction in interest rates to ameliorate the economic cost of the
health pandemic. The scale of infection and cases of mortality associated with the outbreak of the
Coronavirus are generally projected to be lower in EMDEs than in advanced countries. Accordingly,
economic activities in EMDEs would reduce at a relatively slower pace. Speciﬁcally, the IMF's data
suggests that the GDP growth rate in EMDEs will shrink to -1 per cent in 2020. On account of the
analogous growth trajectory of both advanced economies and EMDEs, the global economy is expected to
contract by -3 per cent in 2020.

In a departure from the slow growth path that characterized the global economy in 2019, Ghana
recorded a significant upturn in its GDP. The country's total value of final goods and services increased
from a real value of GH 154.548 billion in 2018 to GH 164.560 billion in 2019 (in 2013 constant
prices). This represents a growth rate of 6.5 per cent in 2019 and it compares favourably with the outturn
of 6.3 per cent in 2018. The primary driver for the increment in GDP was the significant expansion in the
information and communication, mining and quarrying as well as real estate sub-sectors of the
economy. In turn, the growth in the information and communication sub-sector was mainly caused by
increase in consumption of data and that of the mining and quarrying sub-sector was largely attributable
to an increase in oil and gas production. More so, the improvement in the real estate sub-sector was due
to the higher level of transactions in 2019 relative to 2018.

On the back of the growth in the information and communication as well as real estate sub-sectors, the
services sector recorded the highest growth rate of 7.6 per cent in 2019 as compared to its outturn of 2.7
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per cent in 2018. The industrial and agricultural sectors followed with growth rates of 6.4 per cent and
4.6 per cent in 2019 respectively. In 2018, the comparable outturn for the agricultural sector was 4.8 per
cent while that of the industrial sector, which comprises mining and quarrying, manufacturing,
construction, electricity as well as water and sewerage sub-sectors, was 10.6 per cent. The slowdown in
the industrial sector's growth was due to the negative growth rates recorded by water and sewerage (-
4.4%) and construction (-4.4 per cent) sub-sectors, which moderated the increase in output of the
electricity, manufacturing and the mining and quarrying sub-sectors. The latter sub-sectors' growth
rates in 2019 were an improvement over their corresponding outturns in 2018, except for the mining and
quarrying sub-sector. Speciﬁcally, the growth rate of the mining and quarrying sub-sector, which
consists of the mining, oil and gas as well as quarrying activities, reduced from 23.3 per cent in 2018 to
12.6 per cent in 2019. The sub-sector's relatively slow pace of growth could be attributed to levelling out
of the effect of the inclusion of contract mining support services as a component of the mining sub-sector
in the national accounts in 2018. This is evinced in the sharp decline of the sub-sector's growth rate from
48.5 per cent in 2018 to 10.3 per cent in 2019.

With regard to contribution to GDP, the services sector consolidated its position as the largest economic
activity in the country. Its share improved from 46.3 per cent in 2018 to 47.2 per cent in 2019. Similarly,
the contribution of industrial sector to GDP increased marginally from 34.0 per cent in 2018 to 34.2 per
cent in 2019. The mining and quarrying sub-sector (excluding oil and gas) continued to lag behind
manufacturing as the most valuable economic activity in the industrial sector. Further, it was also the
third largest sub-sector by value (in current prices) in 2019 with a share of 10 per cent in GDP as shown in
Table 1.0. In contrast, the agricultural sector's contribution to GDP declined from 19.7 per cent in 2018 to
18.5 per cent in 2019.

Table 1.0: Selected Macroeconomic Indicators of the Mining and Quarrying Sub-Sector1
Parameter 2018 2019
Sectoral Growth Rate (%) (at constant prices) 48.6 10.4
Share in Value of Industrial Sector (%) (at current prices) 28.9 30.1

Contribution to Gross Domestic Product (at basic prices) 9.8 10.3

Ghana's growth trajectory in 2020 would potentially deviate from the pattern of year-on year increases
recorded in the last two years. The outbreak of Coronavirus in the country is expected to not only disrupt
local economic activities but potentially trigger a reversal of capital inﬂows as non-resident investors
reorganize their portfolios away from treasury securities to hedge against the uncertainty induced by the
pandemic. This may exert depreciatory pressure on the local currency, which could also culminate in an
increase in the general price level and elevate the debt service burden. Moreover, the steep decline in the
traded price of oil on the international market could exacerbate the growth-curtailing effect of the global
health crisis. However, the accommodative ﬁscal and monetary measures announced by the government
are expected to palliate the economic impact of the Coronavirus outbreak. Against this backdrop, the
IMF projects Ghana's GDP growth rate to drop sharply to 1.5 per cent in 2020.

Overview of the Global Gold Industry in 2019

Outturn of Gold Price in 2019
Generally, the price outturn of gold in 2019 mirrored the pulse of the global economy and geopolitical
developments as well as the underlying supply and demand conditions. In the ﬁrst half of the year, the
stable growth of the global economy partly drowned the uncertainties emanating from the drawn-out
procedural requirements related to the United Kingdom's withdrawal from the European Union as well
as the trade tensions between the United States and China. Consequently, the traded price of the yellow
metal was largely bearish as it oscillated between a band of US$ 1,269 per ounce and US$ 1,439 per
ounce. Contrastingly, the other half of the year was characterized by heightened geopolitical tensions
and sluggish economic growth. These developments, which reinforced the allure of gold as a safe haven
asset, led to a sustained surge in its price. Within this period, the lowest and highest price of gold on the
London Metals Exchange (LME) were US$ 1,317 per ounce and US$ 1,546 per ounce respectively.

Similar to the trend observed in recent years, the upturn in gold price in the end-of-year trading sessions
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of 2018 spilt over to January 2019. The yellow metal opened 2019 with a spot price of US$ 1,283 per
ounce on the LME and sustained the rebound in price until the end of January when the Federal Open
Market Committee (FOMC) of the United States announced its decision to maintain the Federal Funds
Rate at a range of 2.25 per cent to 2.5 per cent. As expected, investors interpreted the retention of the
Federal Funds Rate as a sign of subdued downside risk to the US and global economy. This development
therefore occasioned a transient decline in the price of gold as investors diversiﬁed their portfolio away
from bullion to other near-money assets. The price of gold recovered in February on the back of counter
threats of imposition of tariffs by the US and Chinese governments and inability of the Conservative
government of the United Kingdom to secure victory in the ballot on the withdrawal agreement with the
European Commission. Following the grant of the United Kingdom's request for an extension of the
departure date from the European Union and maintenance of the Federal Funds Rate in the second and
third meetings of the FOMC, the price of gold trended downwards between March and early May with
sporadic surges in price.

After recording its lowest level of US$ 1,270 per ounce in the latter part of April, the yellow metal's price
rebounded and maintained a bullish momentum till it peaked at US$ 1,546 per ounce in September as
shown in Fig 2.0. The trough and crest of price in 2019 compares favourably with the levels of US$ 1,178
per ounce and US$ 1,354 per ounce recorded in 2018 respectively.

Fig 2.0: Trends in Gold Price in 2019

Source: Kitco Metals Incorporated (2020)2

The underlying currents for the sustained increase in price between May and September bordered
mainly on geopolitical factors which also had a knock-on effect on the outlook of the global economy.
Firstly, the inability of United States and China to resolve their trade dispute and subsequent introduction
of tariffs heralded a potential slowdown in the world's two largest economies with its associated
contagion effect on the global economy. Further, the United Kingdom dithered in its quest to secure
approval for the withdrawal agreement and eventual departure from the European Union. As well, the
United States was unable to conclude an agreement on non-proliferation of nuclear weapons with the
Democratic People's Republic of Korea (North Korea). This led to the resumption of testing of long-range
missiles by North Korea and military drills between the United States and South Korea. In addition, the
political tension between the United States and Iran escalated following the counter designation of each
country's military as a terrorist organization.

These developments weighed on the global economy and caused the FOMC to reduce its short-term
target for the Federal Funds Rate by a quarter for the ﬁrst time in the year. Similarly, the central bank of
China (People's Bank of China) also reduced its interest rate by one-half percentage point to bolster the
growth of its economy. In response to the faltering outlook of the global economy, investors increased
their demand for safe haven assets such as gold. The sudden increase in demand for the yellow metal
gave rise to an upward movement in its traded price on the LME as shown in Fig 2.0.

In the last quarter of 2019, the seeming convergence of positions on a trade deal between the United
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States and China as well as global concerted efforts to defuse the strained relationship between United
States and Iran tempered the uncertain global climate. In response to these developments, the price of
gold vacillated persistently till the end of November. Subsequently, weak economic data from the United
States and China bolstered the yellow metal's price and it remained on the path of ascendancy for the
rest of the year. Its closing price on the LME was US$ 1,515 per ounce. Overall, the cumulative average
spot price of gold in 2019 was US$ 1,393 per ounce. This represents a 9.7 per cent increase over the
equivalent price of US$ 1,269 recorded in 2018.

The outlook of price in 2020 remains bullish as the Coronavirus induced global health pandemic is
expected to provide tailwinds for year-on-year growth in the yellow metal's price.

Trends in Demand for Gold in 2019

The outturn of price in 2019 had a mixed and disproportionate impact on the traditional classes of
demand for gold. The application of gold in the fabrication of jewellery and technology as well as demand
by central banks and other financial institutions, which tend to be inversely related to price, declined as
the yellow metal became less affordable. In contrast, investment demand for gold, which varies
indirectly with interest rates on the equity market, increased as investors took advantage of the price-
driven profit opportunities in the bullion market. The expansion in investment demand was insufficient to
offset the contraction in the other types of demand, leading to a year-on-year decline in aggregate
demand for gold. Data from the World Gold Council suggests that global demand for gold decreased by a
percentage to 4,335 tonnes in 2019 from 4,401 tonnes in 2018 as shown in figure 3.0.

Figure 3.0: Trends in Global Demand for Gold (2018 and 2019)
5000.0 10%

4500.0 8%
4000.0 6%
3500.0
4%
3000.0
2%
2500.0
0%
2000.0
-2%
1500.0

1000.0 -4%

500.0 -6%

0.0 -8%
Jewellery Investment Oﬃcial Technology Global Demand

2018 2019 % Change

Source: Author's construct based on data from World Gold Council (2020)

The demand for gold for fabrication of jewellery declined from 2,240 tonnes in 2018 to 2,107 tonnes in
2019 on the back of the twin problem of gold price induced decline in real income and slowdown in local
economies. The 6 per cent fall in demand was mainly triggered by reduction in jewellery consumption in
the product's largest markets, China and India. In China, the rise in gold price and heightened
inﬂationary pressure held back purchases of gold by 7 per cent, from 686 tonnes in 2018 to 637 tonnes in
2019. Similarly, the rise in gold price, which induced a decline in real income, and depreciation of the
local currency abated demand for jewellery in India. The festival of lights, which is traditionally
associated with high consumption of jewellery, could even not reverse the slump in demand on account
of reasons of affordability. Overall, India's demand for gold jewellery contracted from 598 tonnes in
2018 to 544 tonnes in 2019. This translates into a decline of 9 per cent.

Further, the rise in price of gold drove the demand for gold jewellery downwards in the Middle East,
Turkey, East Asia and Europe. The general reduction in demand for gold jewellery was partly moderated
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by the growth in purchases by consumers in the United States and Japan. In the case of the former,
which is the world's third largest consumer of gold jewellery, the upturn in the economy and appreciation
of real income were the primary reasons for the 2 per cent increase in demand, from 128 tonnes in 2018
to 131 tonnes in 2019. Likewise, demand for gold jewellery in Japan expanded by 3 per cent, from 16.5
tonnes in 2018 to 17 tonnes in 2019, on account of improvements in the economy. In spite of the
contraction, jewellery continued to be the largest source of demand for gold. It accounted for 48 per cent
of global demand for gold in 2019 as compared to 51 per cent in 2018.

Investment demand for gold, which comprises purchases of gold bars, gold coins, medals and exchange
traded funds, respond differently to the hike in price of the yellow metals. Gold bars, coins and medals are
generally considered as retail investments and tend to react to gold price movements in two distinct
ways. Firstly, an increase in gold price creates proﬁtable opportunities for holders of such assets to
dispose them. More so, the rise in gold price often does not only impact adversely on the purchasing
power of consumers but also makes it uneconomical for an investor to augment his or her stock of gold
bars and coins. These rational responses generally claw back demand for gold bars and coins in periods
of high prices of gold. Unsurprisingly, the demand for gold bars and coins declined to a ten year low of 870
tonnes in 2019 from 1,093 tonnes in 2018. The 20 per cent nosedive in demand for gold bars and coins
was primarily instigated by a general decline in new purchases across all the major markets except for
Turkey, Canada and South Korea.

On the other hand, demand for gold backed exchange traded funds (ETFs) tend to correlate positively
with the price of gold. Generally, an appreciation in the yellow metal's price presages a downturn in the
global economy and therefore enhances the appeal of bullion as an investment asset. Moreover, ETFs
tend to yield higher returns than traditional investment instruments when the bullion market is bullish.
Investors react to such developments by increasing their demand for gold backed investment
instruments such as the ETFs. Accordingly, demand for ETFs increased by 426 per cent, from 76 tonnes
in 2018 to 401 tonnes in 2019. The main drivers of growth in demand for ETFs originated from the
European and American markets, which account for 48 per cent and 50 per cent of the market share
respectively. Speciﬁcally, the year-on-year demand for ETFs increased by 17 per cent in both the United
States (1440 tonnes in 2019) and Europe (1322 tonnes in 2019). The upturn in the United States' demand
was largely a function of the reduction in the Federal Funds Rate whereas that of Europe reﬂected the
heightened uncertainty associated with the departure of the United Kingdom from the European Union.
Conversely, demand for ETFs in the Asian market was unchanged at 79 tonnes in 2019.

Overall, the signiﬁcant growth in demand for ETFs displaced the decline in demand for gold bars and
coins to increase total investment demand for gold from 1,169 tonnes in 2018 to 1,271 tonnes in 2019.
The 9 per cent expansion in demand for ETFs also translated into a rise in its share of demand for gold,
from 27 per cent in 2018 to 29 per cent in 2019 as shown in Figure 4.0.

Figure 4.0: Distribution of Demand for Gold in 2019

7%
15%
48%

29%

Jewellery Investment Oﬃcial Technology

The demand for gold as a reserve currency by central banks and other ﬁnancial institutions reduced
Source: Author's construct based on data from World Gold Council (2020)
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marginally from 656 tonnes in 2018 to 650 tonnes in 2019 as a result of the slowdown in purchases by
China and Russia, which counterbalanced the increase in demand by other countries such as Poland
and Turkey.

Although the year-on-year comparison of ofﬁcial demand for gold shows a percentage drop, the 2019
outturn represents the second highest purchases in more than ﬁfty (50) years. This demonstrates the
increasing importance of gold in the lenders of last resort tools in managing currency risks in the
context of escalating geopolitical tensions and unilateralism. At the end of 2019, the United States,
Germany and Italy were the countries with the largest holding of gold for reserve currency purposes.
Their respective holdings of 8,133 tonnes, 3,364 tonnes and 2,451 was equivalent to 78 per cent, 74
per cent and 69 per cent of their reserve currency. With respect to Africa, South Africa (125 tonnes),
Libya (116 tonnes), Nigeria (21 tonnes), Mauritius (12 tonnes) and Ghana (8 tonnes) had the highest
stock of gold as reserve currency.

Finally, the consumption of gold in technology-related applications, which is a form of derived

demand, correlates inversely with the price of gold. Against the backdrop of relatively high prices of
gold and weak global economic growth, demand for gold in technological applications shrank from
334 tonnes in 2018 to 326 tonnes in 2019. The 2 per cent contraction in demand reﬂected the broad
reduction in the various uses of gold in technology. Speciﬁcally, the application of gold in electronic
devices such as light-emitting diode (LED), semi-conductors and memory devices declined while that
of printed circuit board (PCB) increased. Likewise, the use of gold in dentistry and other residual
applications also fell by 2 per cent.

In 2020, the Coronavirus health pandemic is expected to unsettle the global economy and lead to
broad reduction in GDP growth in most countries. The forecasted weak global economic growth could
provide momentum for an upswing in investment demand for gold. However, the slowdown in
economic growth may also culminate in an escalation in the traded price of gold and curb the demand
for gold based jewellery and technology. Further, central banks' demand for gold is also anticipated to
fall in response to the projected increase in price. Overall, the decline in the non-investment demand
for gold is expected to result in a consecutive contraction in global demand.

Global Supply of Gold

The signiﬁcant expansion in recycled and net producer hedged gold outperformed the marginal
decline in mine production to elevate total supply of gold by 2 per cent to 4,776 tonnes in 2019 from
4,673 tonnes in 2018. The volume of recycled gold, which tends to respond positively to upward
movements in gold price, increased from 1,176 tonnes in 2018 to 1,304 tonnes in 2019. The 11 per
cent expansion in supply of recycled gold was mainly due to activities of consumers in India, Turkey
and Iran who sought to take advantage of the favourable price of gold in the second half of 2019. More
so, the depreciation of their respective currencies relative to the US Dollar provided an additional
incentive for proﬁt taking positions.

Furthermore, net producer hedging also responded to the increase in price of gold with an expansion,
from -12.5 tonnes in 2018 to 8.3 tonnes in 2019. While this outturn was surprising, it somewhat
reﬂected an incentive on the part of producers to wait and de-hedge when price reaches their
projected long-run equilibrium.

Regarding mine production, unfavourable developments in China, Indonesia, South Africa and
Mexico blighted the appreciable growth in output in the other major gold mining jurisdictions such as
West Africa, which was the primary engine of growth in 2019. In China, producers continued to adjust
to the stringent environmental regulatory reforms that were recently introduced by the government.
Indeed, the country's gold production has declined successively in the years following the
introduction of the new environmental guidelines.

This trend persisted in 2019, with the country recording a 6 per cent contraction in gold output. In
South Africa, the aftershocks of the industrial dispute between some gold producers and organized
labour as well as suspension of production by some mines weighed on the country's output. As a
result, it continued to cede the position of leading producer of gold on the African continent to Ghana.
Whereas social conﬂicts between mines and host communities were the setback to production in
01
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Mexico, the depletion of the higher-grade ore and subsequent transition from surface to underground
mining by the world's second largest mine, Grasberg Mine, accounted for the fall in output of
Indonesia. The contraction in output of the aforementioned countries plunged global mine production
downwards to 3,463 tonnes in 2019 from 3,509 tonnes in 2018, a dip of 1 per cent.

Global Production Cost of Gold

Based on data from the World Gold Council and Metals Focus, the global cost of producing an ounce of
gold, as measured by the all-in sustaining cost (AISC), increased from US$ 899 per ounce in 2018 to
US$ 936 per ounce in 2019. The 4 per cent rise in the AISC mirrored the widespread increase in
mining cost, which offset the moderation in production cost recorded by relatively smaller mining
jurisdictions such as the Central America and the Caribbean, Middle East and Oceania. The AISC per
ounce for these mining destinations decreased from US$ 702 in 2018 to US$ 664 in 2019, US$ 828 to
US$ 592 and US$ 853 to US$ 847 over the same period, which represents a fall of 5 per cent, 29 per
cent and 1 per cent respectively.

In Africa, the cost of producing an ounce of gold increased from US$ 1,008 to US$ 1,026. The 2 per
cent year-on-year rise in AISC per ounce was ascribed to the elevation in cost of the continent's main
producers. Similarly, the AISC of Commonwealth of Independent States grew from US$ 714 per
ounce in 2018 to US$ 720 per ounce in 2019. Producers in East Asia and Indian Subcontinent
recorded a 17 per cent upturn in their average AISC, from US$ 769 per ounce in 2018 to US$ 903 per
ounce in 2019. The surge in AISC was largely an outcome of environmental regulatory reforms in the
world's largest producer of gold, China.

With respect to Europe, which is the most expensive mining jurisdiction, the AISC rose by 33 per cent
relative to the outturn of US$ 1,012 per ounce in 2018. The escalation in the continent's cost to US$
1,350 was mainly due to production related challenges. North and South America also recorded
expansion in their AISC. While production cost in North America surged by 12 per cent, its
comparative outturn in South America was 7 per cent. Specifically, the AISC of North American gold
producers increased from US$ 923 per ounce in 2018 to US$ 1,034 per ounce in 2019 due partly to
production related developments in the United States and Mexico. In South America, the AISC rose
from US$ 888 per ounce in 2018 to 948 per ounce in 2019 as shown in figure 5.0. The expansion in the
continent's mining cost was on account of country specific structural problems.

Figure 5.0: All-In Sustaining Cost of Global Gold Mining Jurisdictions

1600 40%
1400 30%
1200 20%
US$ per Ounce

1000 10%
800 0%
600 -10%
400 -20%
200 -30%
0 -40%

Figure 5.0: All-In Sustaining Cost of Global

2018Gold Mining
2019 Jurisdictions
% Change
Global Exploration Trends in 2019
Source: Author's construct based on data from World Gold Council and Metals Focus (2020)
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The expenditure on global mineral exploration, as measured by company exploration budget,
plummeted by 11.5 per cent to US$ 4.293 billion in 2019 from US$ 4.852 billion in 2018. The decline in
budgeted exploration expenditure was induced by a general cut down in spending across all the mining
jurisdictions except Australia and South East Asia-Paciﬁc regions. The total budgeted expenditure on
mineral exploration in Australia increased from US$ 747.4 million in 2018 to US$ 852.8 in 2019 while
that of South East Asia-Paciﬁc region rose from US$ 156.6 million in 2018 to US$ 164.2 million in 2019.
The respective expenditures translate into a growth rate of 14 per cent and 5 per cent as well as
represent 19.8 per cent and 3.8 per cent of global exploration budget in 2019.

The total budgetary allocation to mineral exploration projects in Canada and United States declined by
21 per cent and 22 per cent respectively. While planned exploration expenditure in Canada reduced from
US$ 929.7 million in 2018 to US$ 733.2 million in 2019, the equivalence in the United States also
nosedived from US$ 483.6 million in 2018 to US$ 376.9 million in 2019. On account of the signiﬁcant
paring of expenditure, the share of Canada and United States in global exploration budget reduced from
19.2 per cent in 2018 to 17.1 per cent in 2019 and 10.0 per cent in 2018 to 8.8 per cent in 2019.

In a similar fashion, the projected exploration spending in Latin America, Africa and the residual mining
jurisdictions (rest of the world) also plunged from US$ 1.152 billion in 2018 to US$ 992.7 million, US$
687 million to US$ 615.9 million and US$ 695.9 million to US$ 557.4 million within the same period. In
terms of share of budgeted expenditure, Latin America and the residual countries accounted for 23.1 per
cent and 13.0 per cent in 2019 respectively. The corresponding outturns in 2018 were 23.7 per cent and
14.3 per cent. With respect to Africa, its share of the global exploration budget increased from 14.1 per
cent to 14.3 per cent in 2019 as shown in ﬁgure 6.0. This was on account of the fact that the continent's
budgetary allocation fell at a slower rate than the other jurisdictions. In Africa, Burkina Faso was the
largest recipient of planned exploration capital in 2019. The country was earmarked to receive US$
132.0 million in 2019, which represents 3.08 per cent of global budget for exploration. Ghana and Mali
trailed Burkina Faso with a budget of US$ 98.6 million and US$ 91.9 million in 2019 respectively.

Figure 6.0: Global Distribution of Mineral Exploration Budget

9% 14%
13%
4%
20%

23%
17%

Africa Australia Canada La n America Paciﬁc/South East Asia Rest of World USA

Source: Based on data from S&P Global (2020)

In line with recent trends, brown ﬁeld projects received the largest allocation of exploration capital in
2019 with a budget of US$ 1,852 million (43.2%). This was followed by projects in their feasibility or late
stage of development and at grass root. Speciﬁcally, grass root projects were earmarked to receive US$
1,063 million while the year's remaining funds of US$ 1,377.7 million was allocated to feasibility or late
stage projects. With respect to spending by companies, Newmont, Barrick, AngloGold Ashanti and Gold
Fields had the largest exploration budget in 2019.
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The Performance of Ghana's Mining Industry in 2019
The production, purchases and shipment outturns of Ghana's main minerals were mixed in 2019.
Whereas the production of gold attributable to the large-scale sector expanded by 6 per cent that of the
small-scale sector contracted by 20 per cent. Consequently, Ghana's total gold output fell by 4 per cent.
Likewise, purchases of diamond continued its inexorable decline with a 41 per cent plunge in output. On
the contrary, the bulk minerals sector recorded improvements in shipment. Speciﬁcally, shipments of
manganese and bauxite increased by 18 per cent and 10 per cent as shown in Table 2.0.

Table 2.0: Mineral Production, Assay and Shipments

Mineral 2018 2019 % Change
*
Gold Produced by Large-Scale Mines (Ounces) 2,807,918 2,989,446 6%
**
Gold Assayed by PMMC (Small-Scale Sector) 1,984,370 1,588,191 -20%
Total In-Country Gold Production (Ounces) 4,792,287 4,577,637 -4%
**
Trans-Shipment of Gold (Ounces) 269,565 - -100%
***
Manganese (Tonnes) 4,551,754 5,383,014 18%
*
Bauxite (Tonnes) 1,011,302 1,116,334 10%
**
Diamond (Carats) 57,531 33,789 -41%

Source: *Minerals Commission (2020), **Precious Minerals Marketing Company (2020), ***Ghana
Chamber of Mines (2020)

On the back of signiﬁcant growth in production from Newmont's Ahafo, Gold Fields' Damang and Asanko
Gold Mines, the large-scale sector's gold output increased from 2.807 million ounces in 2018 to 2.989
million ounces in 2019. The expansion in output from the afore-mentioned mines outweighed the steep
contraction in production recorded by other large-scale mines such as Golden Star Bogoso Prestea Ltd
and Adamus Resources Ltd's Nzema Mine.

On the other hand, the quantum of gold assayed by the Precious Minerals Marketing Company (PMMC)
on behalf of Licensed Gold Exporting Companies (LGECs) decreased from 1.984 million ounces in 2018
to 1.588 million ounces in 2019. The fall in the sub-sector's activities, which is used as a proxy for
production by small-scale mines, was mainly a reflection of the reduced purchases of gold by major
firms such as A.A. Minerals Ltd., RG Resources and Sahara Royal Gold Refinery. Further, the volume of
gold exported by LGEC on behalf of foreign producers, which is also referred to as trans-shipment,
reduced by 100 per cent from its 2018 value of 0.269 million ounces. In other words, the LGECs did not
undertake any transactions related to trans-shipment in 2019. This outturn is unsurprising as the main
firms involved in trans-shipment of gold, A.A. Minerals and Sahara Royal Gold Refinery, did not
undertake any purchases of gold in 2019 (see appendix 4).

In view of the contrasting performance of the large and small-scale sectors, Ghana's total gold
production declined from 4.792 million ounces in 2018 to 4.577 million ounces in 2019. Notwithstanding
the fall in output, the outturn in 2019 was the third highest level of production in more than three
decades. In terms of share of production, the small-scale sector accounted for 35 per cent of national
gold production in 2019 relative to 41 per cent in 2018. This also implies that the large-scale sector
improved on its contribution to national gold production, from 59 per cent in 2018 to 65 per cent in 2019,
as shown in ﬁgure 7.0.
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Figure 7.0: Share of Sector in National Gold Production

35%

65%

Large-Scale Sector Small-Scale Sector

Source: Author's construct based on data from Chamber of Mines (2020) Minerals Commission (2020)
and PMMC (2020)
The shipment of manganese by the country's monopoly producer, Ghana Manganese Company,
increased from 4.551 million tonnes in 2018 to 5.383 million tonnes in 2019. The upturn in production
was consistent with the ﬁrm's objective of ramping up production to meet global demand for its premium
output. In the same vein, Ghana Bauxite Company recovered from the recent slump in production to
record a year-on-year growth in output. Its shipments of bauxite improved from 1.011 million tonnes in
2018 to 1.116 million tonnes in 2019. The increment in output was primarily due to improvements in
operational activities.

On the downside, purchases of diamond by PMMC fell from 0.057 million carats in 2018 to 0.033 million
carats in 2019. The persistent decline in purchases of diamond largely reﬂects low recoveries from
small-scale winners and the continued suspension of production by the only large-scale producer of
diamonds, Great Consolidated Diamond Company. The latter was still under “care and maintenance” at
the end of 2019.

Macroeconomic Contributions of the Mining Sector in 2019

Fiscal Revenue Performance
Data from the Ghana Revenue Authority (GRA) suggests that total direct domestic fiscal receipts
attributable to the mining and quarrying sector improved from GH¢ 2.36 billion in 2018 to GH¢ 4.02
billion in 2019. The 70 percent increase in fiscal payments by firms in the sector was occasioned by the
simultaneous increase in production and price, particularly, gold. As well, the expiration of the stability
agreement between the Government of Ghana and AngloGold Ashanti Iduapriem Limited resulted in the
alteration of the fiscal terms of the latter to the generic regime applicable to the mining industry. In
essence, the lapsing of the stability agreement thrust the firm into a higher tax paying position.

In the year under review, the various mining sector fiscal streams mobilized by the GRA recorded year-
on-year growth as shown in Table 3.0. Specifically, corporate tax receipts from the minerals sector
increased by 89 per cent to GH¢ 2.27 billion in 2019 from GH¢ 1.20 billion in 2018. The sector's corporate
tax payments was equivalent to 19.01 per cent of aggregate corporate tax fiscal receipts collected by
the GRA. Moreover, the income tax (PAYE) receipts of mining sector employees rose from GH¢ 457.16
million in 2018 to GH¢ 736.26 in 2019, which represents a growth rate of 61.1 per cent.

The PAYE payments of the mining sector translates into 6 per cent of the aggregate national payroll
taxes. Likewise, mineral royalty payment and residual taxes, which is ofﬁcially classiﬁed as self-
employed, also expanded by 42.7 per cent and 277.8 per cent respectively. While mineral royalty
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receipts, which was 99.4 per cent of total non-oil royalty payments, increased from GH¢ 705.26 million
in 2018 to GH¢ 1.01 billion in 2019, the residual taxes surged from GH¢ 0.18 million to GH¢ 0.67 million in
the same period.

Table 3.0: Fiscal Contributions of the Mining and Quarrying Sector

Type of Fiscal Payment (GH¢) 2018 2019 % Change
Employee Income Tax (Pay-As-You-Earn) 457,156,177 736,256,367 61.1%
Corporate Income Tax 1,199,597,591 2,269,768,470 89.2%
Royalty 705,262,160 1,006,668,500 42.7%
Other (Self-Employed) 178,498 674,312 277.8%
Total 2,362,194,425 4,013,367,650 69.9%
Source: Ghana Revenue Authority (2020)

In view of the significant growth in fiscal payments, the share of the mining and quarrying sector in total
direct domestic receipts mobilized by the GRA improved from 14.2 per cent in 2018 to 18.3 per cent in
2019. The sector's total fiscal contribution in 2019 was the second highest after that of the financial and
insurance sector and translates into 7.7 per cent of domestic revenue. In the previous year, the mining
and quarrying sector was the largest contributor to direct domestic receipts and accounted for 5.0 per
cent of domestic fiscal revenue. In terms of total government revenue, the mining and quarrying
sector's contributions increased from 4.9 per cent in 2018 to 7.6 per cent in 2019 as shown in figure 8.0.
Figure 8.0: Share of Mining and Quarrying Sector in Fiscal Receipts

20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
Direct Domes c Revenue Domes c Revenue Total Government Revenue

2018 2019

Source: Author's construct based on data from GRA (2020)

Merchandise Exports and Balance of Payments
In a relatively small and import dependent economy as Ghana's, volatility in exchange rates has
significant ramifications on the standard of living of the population via its pass-through effect on the
price level and interest rates. In order to abate such inflationary pressures, which have the potential of
deepening poverty, it is a sine qua non for the financial intermediation system to have regular and
unimpeded access to forex. The minerals and mining sector has been the mainstay of the country in
providing liquidity to the foreign exchange market to meet the import demands of households and firms
in the country.

Data from the country's lender of last resort, Bank of Ghana, indicates that proceeds from the export of
minerals rose from US$ 5.760 billion in 2018 to US$ 6.678 billion in 2019. The 16 per cent expansion in
mineral revenue was occasioned by improvements in receipts from gold, manganese and bauxite, which
outweighed the decline in proceeds from the export of diamond. Receipts from the export of gold
increased from US$ 5.436 billion in 2018 to US$ 6.230 billion in 2019, representing a growth rate of 15
per cent. The expansion in export receipts of gold was largely driven by an increase in the traded price of
the yellow metal. Similarly, the growth in shipments of manganese combined with an increase in its
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traded price to increase export proceeds by 39 per cent, from US$ 297 million in 2018 to US$ 412 million
in 2019. In spite of the stagnation in the average price of bauxite, the upswing in shipments raised export
proceeds from US$ 25 million in 2018 to US$ 36 million in 2019. This denotes a 42 per cent expansion in
receipts from the export of bauxite. On the downside, revenue from the export of diamond plummeted by
56 per cent. Its reduction from US$ 1.90 million in 2018 to US$ 0.83 million in 2019 was partly due to the
contraction in its production.

On account of the difference in export receipts performance, the shares of the respective minerals in
total mineral revenue were altered from their 2018 level. Gold retained its dominance as the leading
contributor of mineral export receipts with a share of 93 per cent in 2019. This was relatively lower than
its corresponding outcome of 94 per cent in 2018. The bulk minerals, manganese and bauxite, improved
their respective contribution to mineral export revenue, from 5 per cent in 2018 to 6 per cent in 2019 and
0.4 per cent to 1 per cent, in the same period. Conversely, the share of diamond in total mineral export
receipts fell to 0.01 per cent in 2019 as compared to 0.03 per cent in 2018.

The upturn in mineral receipts expanded the sector's share in gross merchandize export receipts from 39
per cent in 2018 to 43 per cent in 2019, consolidating its status as the foremost source of foreign
exchange from export earnings. This compares favourably with the equivalent outturns of 29 per cent
and 15 per cent for crude oil and cocoa respectively in 2019. In 2018, cocoa accounted for 14 per cent of
aggregate export receipts while that of crude oil was 31 per cent. As can be inferred from ﬁgure 9.0, the
share of gross mineral receipts in the basket of export revenue in 2019 was the approximate equivalence
of the sum of shares of the country's other two major export commodities, cocoa and crude oil.

Figure 9.0: Share of Commodity in Gross Merchandise Export Receipts in 2019

14%

15% 43%

29%

Minerals Crude Cocoa and Cocoa Products Other Exports

Source: Author's construct based on data from Bank of Ghana (2020)

Coupled with the modest increase in receipts from cocoa and non-oil exports, the growth in revenue from
the export of minerals was partly responsible for improving the country's trade balance. Data from the
Bank of Ghana shows that the country's merchandise exports exceeded merchandise imports by US$
2.282 billion in 2019 relative to US$ 1.778 billion in 2018. The 28.3 per cent growth in the trade balance
was the third consecutive year the country recorded a surplus in its merchandise trade account.

Notwithstanding the widening of the deﬁcit in the current account, which was attributable to
unfavourable developments in the services and investment components of the account, the country
ended 2019 with a positive balance of payments (BOP) of US$ 1.341 billion as compared to a deﬁcit of
US$ 0.671 billion in 2018. The surplus position was a consequence of the excess of the capital and
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ﬁnancial account over the current account. The surplus BOP partly culminated in an improvement in
the country's Gross International Reserves from US$ 7.025 billion in 2018 to US$ 8.418 billion in
2019, a year-on-year growth of 20 per cent. In terms of import cover, the Gross International
Reserves increased from 3.6 months to 4 months. The expansion in the Gross International Reserves
had a moderating inﬂuence on the volatility of the exchange rate between the local currency and
convertible currencies such as the United States Dollar as well as its associated impact on the
stability of the general price level.

Local Impact of Mining in 2019

Repatriation of Mineral Export Proceeds to Ghana by Producing Member Companies
Although mineral export revenue is an important component of the country's balance of payments, it
is the in-country repatriation of these receipts that lubricate the foreign exchange market and
contribute to stabilizing the general price level. This is explained by the fact that the plough back and
retention of mineral export proceeds with local financial firms deepen their intermediation functions
as well as reinforce their foreign exchange reserves to meet the import demands of the country. In
essence, the liquidity provided by the mining companies contributes significantly in bridging the gap
between demand and supply of forex and thereby slowdown the rate at which the country's currency
loses value to other traded currencies. Such outcomes have important implications for the general
price level through its interaction with the import market.

Akin to last year, the average share of mineral export receipts returned to the country was in excess of
the statutory threshold prescribed by the Minerals and Mining Act, 2006 (Act 703) as well as above
the disparate limits prescribed in the various Investment Agreements between some mining
companies and the Government of Ghana. Out of their realized mineral export revenue of US$ 4.5
billion in 2019, the producing member companies returned US$ 3.3 billion. This translates into 73 per
cent of export proceeds, which is marginally lower as compared to its level of 74 per cent in 2018. In
consonance with a directive of the Bank of Ghana, the entire US$ 3.3 billion was ploughed back into
the country through the various commercial banks. The Bank of Ghana ceded its share of forex under
the mandatory surrender requirements to the commercial banks in 2016. This measure, which was
part of policy recommendations by the International Monetary Fund, was intended to deepen the
foreign exchange market.

Expenditure of Mineral Revenue

It is generally proven that a critical pathway through which the minerals and mining sector inﬂuences
economic development in its host country and community is through expenditure on locally sourced
inputs. Accordingly, the Ghana Chamber of Mines and its producing member companies prioritized
the local inputs market in their procurement decisions. In 2019, the producing member companies of
the Chamber spent US$ 1.88 billion on the purchase of non-energy goods and services from in-
country manufacturers and suppliers. This represents 42 per cent of aggregate mineral revenue,
which is slightly lower than the comparable outturn of 44 per cent in 2018. Further, the producing
member companies expended US$ 316.35 million on electricity and US$ 342.05 million on diesel. In
terms of proportion of mineral receipts, the expenditure on electricity and diesel translate into 7 per
cent and 8 per cent respectively. Their corresponding outturns in 2018 were 8 per cent and 6 per cent
respectively.

Further, the total emolument of employees engaged directly by the producing member companies
represented 10 per cent of mineral revenue in 2019 as compared to 12 per cent in the preceding year.
In nominal terms, however, the compensation payment of US$ 463.35 million in 2019 was relatively
higher than the expenditure of US$ 450.07 million in 2018. As well, the ﬁscal payments to the state by
the producing member companies of the Chamber stood at US$ 701.81 million in 2019. This
translates into 16 per cent of mineral revenue, similar to the outturn in 2018.

With respect to expenditure on corporate social investments (CSI), the producing member
companies invested US$ 24.45 million in a variety of projects that were aimed at improving socio-
economic infrastructure and services in their respective host communities in 2019. The expenditure,
which amounts to 1 per cent of mineral revenue, was marginally higher than the equivalent share of
0.5 per cent in 2018. In ﬁgure 10.0, we present a summary of the various sectors that the funds were
invested in.
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Figure 10.0: Sectoral Allocation of Corporate Social Investments in 2019

16
14
US$ Million
12
10
8
6
4
2
-

Source: Ghana Chamber of Mines (2020)

Moreover, the proportion of mineral receipts expended on imported consumables by the producing
member companies in 2019 was unchanged from its 2018 level of 5 per cent while that of capital
expenditure declined from 19 per cent in 2018 to 12 per cent. In monetary terms, the expenses on
imported consumables and capital expenditure in 2019 were US$ 544.22 million and US$ 203.70 million
respectively. As well, the producing member companies spent US$ 165.50 million and US$ 103.51 on
amortization of loans and payments to other shareholders respectively. These expenditures were
equivalent to 4 per cent and 2 per cent of mineral receipts in 2019 as compared to their outturns of 5 per
cent and 1 per cent in 2018 respectively.

On the whole, producing member companies of the Chamber expended US$ 3.73 billion of their mineral
revenue in-country in 2019 relative to US$ 2.51 billion in 2018. In proportionate terms, the 2019 and
2018 expenditures represent 83 per cent and 87 per cent of mineral revenue respectively. The
distribution of mineral revenue realized by the producing member companies in 2019 is summarized in
ﬁgure 11.0.
Fig 11.0: Utilization of Mineral Revenue by Producing Member Companies in 2019

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Local Purchases of Goods and Services State Amor za on
Capital Expenditure Imports of Consumables Employees Corporate Social Investment
Diesel Non-Government Shareholders Electricty

Source: Ghana Chamber of Mines (2020)

GHANA CHAMBER OF MINES

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ANNUAL REPORT 2019

Direct Employment by Producing Member Companies in 2019
In 2019, the total workforce engaged directly by the producing member companies of the Chamber was
11,899 as compared to 10,109 in 2018. The 18 per cent growth in employment was primarily due to the
expansion in employment at Newmont's Ahafo Mine, Asanko Gold Mine and Golden Star Resources'
Wassa Mine as well as AngloGold Ashanti's Obuasi Mine, which offset the signiﬁcant contraction in
labour force at the Damang Mine of Gold Fields and Golden Star Resources' Bogoso Mine. 144 persons
out of the direct workforce population in 2019 were expatriates and the remaining were Ghanaian
nationals. The expatriate category of employees represents 1.2 per cent of the work force in 2019, which
is marginally lower than the 1.6 per cent recorded in the previous year.

Revenue and Output Performance of Producing Member Companies in 2019

Against the backdrop of a simultaneous growth in production and price of both gold and manganese, the
total mineral receipts attributable to producing member companies of the Chamber increased by 18 per
cent to US$ 4.572 billion in 2019 from US$ 3.858 billion in 2018. Speciﬁcally, the proceeds from the
production of gold rose by 17 per cent, from US$ 3.561 billion in 2018 to US$ 4.156 billion in 2019. On the
other hand, receipts from the shipment of manganese improved from US$ 297 million in 2018 to US$
415.19 million in 2019, representing an increment of 40 per cent as shown in ﬁgure 12.0.
Figure 12.0: Mineral Production Revenue of Producing Member Companies
5.00 45%

4.50 40%
4.00 35%
US$ Billion

3.50
30%
3.00
25%
2.50
20%
2.00
15%
1.50

1.00 10%

0.50 5%

- 0%
Gold Manganese Total Revenue

2018 2019 % Change

Source: Ghana Chamber of Mines (2020)

The upturn in the receipts of gold was occasioned by a 9.7 per cent increase in the average realized price
of gold and a 6.5 per cent rise in production as shown in ﬁgure 13.0. Total gold output of the producing
member companies of the Chamber grew from 2.81 million ounces in 2018 to 2.99 million ounces in
2019. The latter translates into 65 per cent of national gold production.

The expansion in gold output was largely a reﬂection of the ramp up in production at Newmont Ghana
Gold Limited, Asanko Gold Mines Limited, Abosso Goldﬁelds Limited and modest growth in the output of
Golden Star Wassa Limited, Newmont Golden Ridge Limited and AngloGold Ashanti Iduapriem Limited.
The growth in production from the aforementioned mines outweighed the decline in output recorded at
Golden Star Bogoso Prestea Limited, Perseus Mining (Ghana) Limited, Gold Fields Ghana Limited,
Chirano Gold Mines Limited and Adamus Resources Limited.
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Figure 13.0: Minerals Produced by Member Companies of the Chamber
6.00 20%
18%
5.00
16%
14%
4.00
12%
3.00 10%
Million

8%
2.00
6%
4%
1.00
2%
- 0%
Gold (Ounces) Manganese (Tonnes)

2018 2019 % Change

Source: Ghana Chamber of Mines (2020)

Production at the Newmont Ghana Ahafo Mine increased by 47 per cent to 643,067 ounces in 2019 from
its outturn of 436,106 in 2018. The steep rise in production was basically due to higher mill throughput
and higher ore grade. In turn, the improvement in mill throughput was partially explained by the
completion of the Ahafo mill expansion project in the last quarter of 2019 which increased the plant's
capacity by an additional 3.5 million tonnes per year.

Overall, the plant is expected to process about 10 million tonnes of materials per year. As well, the mill
recovery rate improved slightly from 94 per cent in 2018 to 94.1 per cent in 2019. Furthermore, the
improvement in ore grade was mainly driven by the relatively higher quantum of material mined from
both the surface and underground pits. Owing to the growth in its production, Ahafo Mine displaced
Tarkwa Mine of Gold Fields as the largest mine in the country. Its share in total gold output of the
producing member companies of the Chamber improved from 15 per cent in 2018 to 22 per cent in 2019.

In a similar vein, the output of Newmont's Akyem Mine rose from 414,427 ounces in 2018 to 422,099
ounces in 2019. The 2 per cent expansion in output was largely a reﬂection of the modest increase in the
mill throughput which was sufﬁcient to offset the output curtailing effect of a decrease in the mill
recovery rate from 91.2 per cent in 2018 to 90.8 per cent in 2019. The production outturn in 2019 was
equivalent to 14 per cent of total gold output of producing member companies, which was relatively
lower than its share of 15 per cent in 2018. On account of the concurrent expansion in the output of its
Akyem and Ahafo Mines, the contribution of Newmont to total gold production of producing member
companies grew from 30 per cent in 2018 to 36 per cent in 2019.

The output of Gold Fields' Tarkwa Mine declined from 524,869 ounces in 2018 to 519,072 ounces in 2019,
representing a dip of 1 per cent. On the other hand, production at its Damang Mine increased by 15 per
cent to 208,381 ounces in 2019 relative to 180,844 ounces in 2018. Whereas the marginal fall in Tarkwa
Mine's output was mainly caused by a reduction in the mill throughput, the expansion in Damang Mine's
production was due to the growth in the volume of ore processed and mill throughput. However, the
production outturn at Damang Mine was impacted negatively by lower head grade as mining activities
transiently encountered the Huni sandstone lithology in the second half of 2019. The mine is expected to
revert to the more consistent and higher grade Tarkwa phyllites by the mid-year of 2020.

As a result of the contrasting production performance, the share of Tarkwa Mine in aggregate gold output
of producing member companies waned by 2 percentage points to 17 per cent in 2019 while that of
Damang Mine appreciated from 6 per cent in 2018 to 7 per cent in 2019. This also implied that Gold Fields
accounted for 24 per cent of gold output attributable to producing member companies of the Chamber in
2019 relative to 25 per cent in 2018.
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Although unstable power supply from the national grid in the ﬁrst half of 2019 as well as fault with a
component of the processing plant reduced the quantum of ore processed by the AngloGold Ashanti
owned Iduapriem Mine, its output increased by 8 per cent. The growth in output from 253,487 ounces in
2018 to 274,665 in 2019 was driven by improved grade control and access to the higher grade area of the
Teberebie pit where stripping commenced in 2017. The average head grade increased from 1.47
grammes per tonne in 2018 to 1.67 grammes per tonne in 2019. Notwithstanding the upswing in its
production, the share of Iduapriem Mine, which was the only producing mine of AngloGold Ashanti, was
largely unchanged at 9 per cent in 2019.

With respect to Obuasi Mine of AngloGold Ashanti, the redevelopment programme progressed in line
with the stated timelines and budget. In 2019, the mine completed the first phase of its redevelopment
strategy which involved the setting up of a plant with a daily processing capacity of 2,000 tonnes. It also
undertook its first underground and stope blasting in February and October 2019 respectively. The latter
was indicative of the commencement of ore production and the mine poured its first gold in December
2019.

The Golden Star Resources' managed mines in Ghana, Wassa and Prestea, recorded mixed production
outturns in 2019. Whereas year-on-year production at the Wassa Mine rose by 4 per cent, the
corresponding outturn at the Bogoso Prestea Mine slumped by 37 per cent. The growth in Wassa Mine's
output from 149,698 ounces in 2018 to 156,168 ounces in 2019 was occasioned by an increase in the
quantum of tonnage mined and processed. The quantum of fresh ore mined, which originated
exclusively from the underground deposits, improved by 32 per cent while the volume of ore processed
also rose by 29 per cent. The ore from the underground deposits was supplemented with supplies from
its open pit stockpile as the mine ceased surface operations in the ﬁrst quarter of 2018. At the end of
2019, the share of Wassa Mine in total gold output of producing member companies of the Chamber was
not signiﬁcantly different from its level of 5 per cent recorded in 2018.

With respect to the Bogoso Prestea Mine, the decline in production from 75,087 ounces in 2018 to 47,533
ounces in 2019 was as a result of the planned reduction in supply of ore from the open pits and slower
than expected ramp up in production at the underground mine. The open pits were anticipated to be
depleted in 2018 but their end of life extended into 2019, albeit with a reduced contribution to the mine's
total production. Likewise, gold output from the underground operations plummeted by 35 per cent due
to a steep decline in the average head grade from 10.12 grammes per tonne in 2018 to 5.58 grammes per
tonne in 2019. The fall in the head grade was mainly caused by unplanned dilution and encountering of
unanticipated waste zones within the stopes. However, the 24 per cent growth in processed ore was the
primary moderating inﬂuence on the Mine's output. Against this backdrop, the share of Bogoso Prestea
Mine in the volume of gold produced by member companies of the Chamber shrank from 3 per cent in
2018 to 2 per cent in 2019. On the whole, Golden Star Resources accounted for 7 per cent of total gold
output of producing member companies in 2019 relative to 8 per cent in the preceding year.

Asanko Gold Mines, which is jointly owned by Asanko and Gold Fields, recorded its highest production
since it achieved commercial production in spite of the setback induced by a wall failure at one of its pits,
Nkran. The mine's production increased by 12 per cent, from 223,152 ounces in 2018 to 251,044 ounces
in 2019 (see ﬁgure 14.0), on the back of an expansion in the quantum of ore mined and milled. In the year
under consideration, the mine obtained its fresh ore from Nkran and Esaase pits, with supplementary
supplies from its run-on-mine stockpile. As well, its share in the total gold output of the producing
member companies of the Chamber in 2019 was unchanged from the previous year's rate of 8 per cent.

With regard to Chirano Gold Mines, a subsidiary of Kinross, production fell from 226,370 ounces in 2018
to 201,037 in 2019. The 11 per cent nosedive in output was partly brought about by a decline in volume of
ore processed, average head grade and mill recovery rate. The 1 percentage point fall in tonnes of ore
processed was a consequence of the metallurgical characteristics of the ore mined while the 9 per cent
dip in the head grade was due to the lower grade ore mined at the underground deposits of Paboase and
Akoti. However, the volume of ore mined improved by 28 per cent following the resumption of surface
mining in the ﬁrst quarter of 2019. The increment in ore mined was the main moderating factor on the
downturn in the previously cited processing metrics. Despite the contraction in production, the mine
maintained its share in the total gold output of member companies of the Chamber at 8 per cent in 2019.
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Figure 14.0: Gold Produced by Member Companies of the Chamber of Mines
700 60.0%
50.0%
600
40.0%
500 30.0%
20.0%
400 10.0%
Thousand Ounces

300 0.0%
-10.0%
200 -20.0%
-30.0%
100
-40.0%
- -50.0%

2018 2019 % Change

Source: Ghana Chamber of Mines (2020)

Figure 15.0: Gold Production Revenue of Member Companies of the Chamber of Mines
1,000 80%
900
800 60%
700 40%
600
500 20%
US$ Million

400
300 0%
200 -20%
100
- -40%

2018 2019 % Change

Source: Ghana Chamber of Mines (2020)

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The Edikan Gold Mine of Perseus Mining (Ghana) Limited altered its mining strategy and life of mine in
January 2019 to enhance the sustainability of its operations. The changes involved using a single mining
contractor, Rocksure International, and lowering total ore and waste mined to satisfy planned mill
throughput. In the light of this development, production at the Edikan Mine plunged from 217,219 ounces
in 2018 to 179,574 ounces in 2019. Coupled with the planned reduction in total ore mined, the 17 per cent
plunge in output was also elicited by a fall in the mill recovery rate and head grade. While the decrease in
the mill recovery rate was triggered by the processing of relatively hard rocks from one of its pits
(Esuajah North), the drop in head grade could be attributed to the processing of ﬁne grained
carbonaceous material from another pit (Fetish). The fall in production also resulted in a 2 percentage
point reduction in the mine's share of gold output of member companies of the Chamber to 6 per cent in
2019.

At the Nzema Mine of Adamus Resources, which is owned by BCM International, production fell by 19
per cent to 84,197 ounces in 2019 from 103,731 ounces in 2018. The decline in production, which
translated into a contraction in its contribution to the total gold output of producing member companies
from 4 per cent in 2018 to 3 per cent in 2019 (see ﬁgure 16.0), was an outcome of the delayed mining from
its primary pit, Bokrobo, and challenges with reserve reconciliation. The planned cutback of the Bokrobo
pit to expose the high grade area exceeded the projected timelines and therefore impacted adversely on
production.
Figure 16.0: Share in Gold Output of Member Companies of the Chamber

3% 2%

5% 22%
6%
7%
7%
17%
8.40%

9% 14%

Newmont Ghana Gold Limited Gold Fields Ghana Limited

Newmont Golden Ridge Limited AngloGold Ashan Iduapriem Limited
Asanko Gold Mines Limited Abosso Goldﬁelds Limited
Chirano Gold Mines Perseus Mining (Ghana) Limited
Golden Star Wassa Limited Adamus Resources Limited
Golden Star Bogoso Prestea Limited

Source: Ghana Chamber of Mines (2020)

Output of the country's sole producer of manganese, Ghana Manganese Company, increased at a slower
rate of 18 per cent in 2019 as compared to 52 per cent in 2018. The lower than anticipated expansion in
output of the TMI owned mine was as a result of the regulatory impasse with the Ministry of Lands and
Natural Resources, which led to prolonged periods of inactivity at the Nsuta Mine.

Outlook of Mineral Production in 2020

With the commencement of production at the Obuasi Mine of AngloGold Ashanti and planned organic
growth in production of most producing members, the outturn of gold output is expected to be higher in
2020 than the preceding year. On the contrary, the production and shipments of manganese by Ghana
Manganese Company is expected to record a year-on-year decline. This is due to the protracted
regulatory impasse that compelled the mine to suspend operations in the ﬁrst quarter of 2020.
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Production Cost Proﬁle of Gold Producing Member Companies in 2019
Similar to other mining jurisdictions, Ghana uses the all-in sustaining cost (AISC) of producing an
ounce of gold as the metric for assessing production cost. The AISC, which is a proprietary metric of
the World Gold Council, measures capital expenditure, production and other costs related to
sustaining current gold production. The average AISC of the gold producing member companies of
the Chamber increased by 4 per cent to US$ 1,029 per ounce in 2019 from US$ 984 per ounce in 2018.
The rise in the AISC per ounce, which exceeded the global equivalent of US$ 936 per ounce, depicted
the general elevation in production cost of producing members.

The cost of producing an ounce of gold at the Ahafo Mine of Newmont declined from US$ 864 in 2018
to US$ 820 in 2019. The 5 per cent fall in AISC was attributable to the growth in revenue associated
with increase in production and lower stockpile inventory, which culminated in a decrease in cost
applicable to sales. However, the mine recorded year-on-year growth in sustaining capital
expenditure and payments of royalty to the state, which partially counterbalanced the fall in AISC. On
the other hand, the AISC of Akyem Mine increased by 2 per cent to US$ 718 per ounce in 2019 as
compared to US$ 705 per ounce in 2018. The rise in production cost was due to the upturn in cost
applicable to sales and reclamation expenditure, which were somewhat offset by lower sustaining
capital spend.

Gold Fields recorded contrasting production cost at its Tarkwa and Damang Mines. The decline in
production at the Tarkwa Mine culminated in a marginal rise in its AISC, from US$ 951 per ounce in
2018 to US$ 958 per ounce in 2019. Conversely, Damang Mine's cost of producing an ounce of gold
decreased from US$ 813 in 2018 to US$ 809 in 2019.The 0.5 per cent fall in AISC was realized on the
back of an increase in gold revenue which was occasioned by a rise in output and price. In the same
period, the cost associated with sale of gold also increased. However, this development was
insufﬁcient to raise the year-on-year cost of producing an ounce of gold.

The contraction in output of Golden Star Resources' Prestea Mine triggered a 24 per cent increase in
its AISC, from US$ 1,558 per ounce in 2018 to US$ 1,937 per ounce in 2019. In a similar vein, the
AISC per ounce of gold for the other mine operated by Golden Star Resources, Wassa Mine, rose by 4
percentage points. The upturn in AISC from US$ 886 per ounce in 2018 to US$ 922 per ounce in 2019
was on account of an increase in sustaining capital expenditure, which outweighed the reduction in
cost applicable to sales.

With respect to Kinross' Chirano Gold Mines, the AISC per ounce of gold increased from US$ 889 per
ounce in 2018 to US$ 1,082 per ounce in 2019 due to an increase in production cost of sales. The rise in
production cost of sales was brought about by the decision to engage a contractor to restart the
surface mining operations.

At the Iduapriem Mine of AngloGold Ashanti, the AISC per ounce of gold continued its downward
descent. It reduced from US$ 977 per ounce in 2018 to US$ 890 per ounce in 2019 following an
initiative to optimize consumption of reagents, which was part of its Operational Excellence
Programme. The savings on reagents was also bolstered by the increase in production.

The AISC per ounce of the joint venture mine of Asanko and Gold Fields, Asanko Gold Mines,
increased by 4 per cent, from US$ 1,072 in 2018 to US$ 1,112 in 2019. The modest growth in the AISC
per ounce was primarily caused by an increase in cost applicable to sales and mining as well as a rise
in the cost of hauling ore from Esaase to the process plant. However, the increase in production cost
was mitigated by growth in mineral production.

Following a revision in its mining strategy, the AISC per ounce of the Edikan Mine of Perseus Mining
Ghana Limited declined by 13 per cent to US$ 985 per ounce in 2019 from US$ 1,129 per ounce in
2018. The drop in production cost was driven mainly by a decrease in its mining cost, which was also
partly offset by the contraction in production.

Similar to the previous year, the AISC per ounce of Nzema Mine of Adamus Resources Limited grew
from US$ 981 per ounce in 2018 to US$ 1,089 per ounce in 2019 as shown in ﬁgure 17.0. The 11 per
cent increment in AISC was largely due to the high cost associated with the cutback of its primary pit,
Bokrobo.
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Figure 17.0: All-In Sustaining Cost of Gold Producing Member Companies
2500 30%
25%
2000 20%
USD per Ounce

15%
1500
10%
5%
1000
0%

500 -5%
-10%
0 -15%

2018 2019 % Change

Source: Ghana Chamber of Mines (2020)

Health and Safety Performance of Ghana's Mining Industry in 2019

Data from the Minerals Commission shows that the safety metrics of Ghana's mining industry recorded
non-homogenous outcomes in 2019. Whereas the incidence of near miss and fatal injuries declined on a
year-on-year basis, the count of first aid and serious injuries deteriorated in 2019 relative to the
preceding year. Specifically, the incidence of first aid injuries, which is statutorily considered as the class
of injuries that does not result in loss of shift, increased by 4 percent.

The case count of first aid injuries grew from 189 in 2018 to 197 in 2019. Likewise, the number of serious
injuries rose by 8 per cent to 28 in 2019 from 26 in 2018. Serious injuries are incidents that involve loss of
shift for more than 14 days. Conversely, incidents that result in death of a casualty, which is formally
referred to as fatal injuries, declined from 7 in 2018 to 3 in 2019. This translates into 57 per cent reduction
in the incidents of fatal injuries as shown in figure 18.0. As well, the incidence of near miss cases fell by
20 per cent, from 407 in 2018 to 326 in 2019. The Minerals Commission defines near miss incidents as
occurrences that do not culminate in loss of shift, injury, death or damage to equipment.

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Figure 18.0: Frequency of Incidents in Ghana's Mining Industry

450 20%

400 10%

350 0%

300 -10%

250 -20%

200 -30%

150 -40%

100 -50%

50 -60%

0 -70%
Near Miss First Aid Injury Serious Injury Fatal Injury

2018 2019 % Change

Challenges Confronting Operations of Member Companies in 2019

In the next section, we present the key issues that impacted the activities of member companies in 2019.
The challenges will be discussed in three broad themes; ﬁscal, advocacy and operational issues.

Fiscal Issues
Price Build-Up of Petroleum Products
The Chamber is of the view that some of the elements in the price build-up of diesel supplied to the mines
have little or no bearing on the cost of supplying the fuel to the mines. The speciﬁc elements are as
follows:

Ÿ Ex-Refinery Price
Unlike the retail market, the ex-refinery price of diesel supplied to the mines is largely determined by the
National Petroleum Authority (NPA). In a sense, the mining industry and other consumers in the export
segment of the petroleum market do not benefit from the gains associated with deregulation. Clearly, a
decision to extend the government's deregulation policy to the export market would not only enhance
competition, which could exert downward pressure on prices, but also improve the service delivery of
the suppliers of diesel to the mines. The Chamber therefore proposes that the government should allow
market forces to autonomously determine the ex-refinery price of diesel supplied to the mines as it
obtains in the retail market.

Ÿ Taxes, Levies and Margins

a. Energy Debt Recovery Levy
The Chamber acknowledges the debilitating impact of the legacy debts on the sustainability and viability
of the energy sector as well as commends government for its efforts to retire them through the Energy
Sector Levy Act, 2015 (Act 899). However, the mining sector has historically paid a fair market tariff for
electricity supplied to it by the Volta River Authority (VRA) or Electricity Company of Ghana (ECG).
Indeed, the tariffs are typically above the fair value in the case of the latter as the Public Utilities
Regulatory Commission (PURC) pricing formula for the mining industry is based on perceived ability-to-
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pay rather than cost of service. The spread between the cost of service and tariff paid by the mines,
which could aptly be described as a premium, is used in cross-subsidizing the consumption of electricity
by other consumers.

It is therefore patent that the mining industry was not a beneficiary of the subsidies that led to the
accumulation of debts in the energy sector. Accordingly, it is unfair to impose a levy on mining companies
to recover debts that they were neither beneficiaries of nor a contributing party to. Accordingly, the
Chamber strongly recommends the exclusion of the Energy Debt Recovery Levy from the price build-up
of diesel supplies to the mines as it obviously weighs heavily on the uncompetitive price of diesel to the
mines, which additional cost can hardly be justified.

b. Price Stabilization and Recovery Levy

The inclusion of Price Stabilization and Recovery Levy (PSRL) in the price build-up of petroleum products
serves the purpose of neutralizing the adverse effects of movements in the exchange rate on the price of
fuel. In the retail market, where the ex-reﬁnery price of the imported diesel is quoted in the local
currency, the levy fulﬁls its function of offsetting shocks induced by volatility in the exchange rate.

On the other hand, the ex-reﬁnery price of diesel supplied to the mines is quoted in United States Dollars
at the full parity price and companies pay their suppliers in the aforementioned currency. This pricing
regime and mode of payment imply that mining companies and other consumers in the export market
have inherently insulated the state from the currency induced movements in the price of diesel. Hence,
the inclusion of another levy, PSRL, in the price build-up of diesel supplied to the mines was not only
superﬂuous but also analogous to double taxation. In that regard, we strongly recommend that
government should expunge PSRL from the price build-up of diesel supplied to the mines.

c. Primary Distribution Margin

The Primary Distribution Margin (PDM) compensates operators in the primary market of fuel products
for their investments in infrastructure in that segment of the market. Basically, these investors provide
depots for holding fuel discharged from vessels before they are transported to their final destination or
facilities of Bulk Oil Storage and Transportation Company (BOST). In the retail market, the inclusion of
the PDM in the price build-up of diesel has an economic justification as the fuel is stored in such facilities
before being transferred to the various outlets. However, the process for handling diesel destined to the
mines does not mimic that of the retail market. The various Oil Marketing Companies (OMCs) that supply
diesel to the mines have their own storage facilities and reflect such investments in their prices to the
mines. It is therefore inappropriate to request the mining companies to pay twice for the same service.
Accordingly, the PDM should be removed from the price build-up of diesel supplied to the mines.

d. Bulk Oil Storage and Transportation Company Margin

The Bulk Oil Storage and Transportation (BOST) Company was set up to among others, provide
infrastructure for holding strategic fuel reserves for the country as well as depots for storing fuel. In
most cases, fuel supplied to the retail market would have been stored in a BOST facility prior to being
transferred to the ﬁnal destination. It is however instructive to note that fuel supplied to the mines is not
comingled with that of the retail market, which is stored in a BOST facility. Indeed, the higher fuel
speciﬁcations of the mining companies make it imprudent for their suppliers to mix their product with
that destined for the retail market. It would therefore be unfair to request an entity to pay for a service
that it does not consume or demand. Accordingly, we appeal for the exclusion of the BOST Margin from
the price build-up of diesel supplied to the mines.

e. Fuel Marking Margin

On account of some historical antecedents, including a mechanism to avoid the adulteration of
petroleum products, the Government of Ghana decided to mark the various fuels that are supplied to the
retail market. Since this procedure was necessarily associated with cost, it was apposite that the state
recovered its expenditure by introducing a margin in the price build-up of fuel supplied to the generic
market. In the “export market”, however, diesel supplied to the mines is not marked. Thus, the need to
include a dedicated margin to recoup costs associated with marking of diesel supplied to the mines
would not be warranted. It is in that regard that we kindly request for the removal of the fuel marking
margin from the price build-up of diesel consumed by mining companies.
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f. Road Fund Levy
As part of the state's efforts to raise revenue to finance the construction of roads in Ghana, beneficiaries
of the infrastructure were requested to bear part of the cost through the inclusion of a levy in the price
build-up of fuel products. The imposition of the levy on fuel products meant that persons who buy fuel for
use in their private vehicles or indirectly for use in a public bus will be commuting on a public road. This
supposition also implied that persons who neither own private vehicles nor use public buses would not be
required to pay for the construction of public roads through the medium of a levy on fuel products. In
other words, they would not have demand for fuel and by extension, public roads. The latter typifies case
of the mining industry where operations are usually undertaken in remote areas that do not require the
use of public roads. As a matter of fact, mining companies operate in situ and their earth moving
equipment are also not used on public roads.

Furthermore, most mining companies contribute directly to improving the country's road network by
underwriting the cost of road construction in their catchment areas. In 2019, for instance, the 13 mining
member companies of the Chamber spent USD 14.46 million on enhancing the road networks in their
operational footprint. It is therefore economically unjustiﬁable to request an entity that does not use
public roads for its operations but voluntarily contribute to the maintenance of same to pay another levy
for such infrastructure. It is our request that the road fund levy would be excluded from the price build-up
of diesel supplied to the mines.

It is obvious that the mining industry straddles the pure export or foreign market and the commercial
retail market. The Chamber suggests that rather than merely layering its ex-refinery price in US$ and
passing on all retail price elements to the mining industry, the government should reconsider the
elements of the price build-up of diesel to the mines to ensure that it reflects relevant cost elements only.
It is our considered view that this approach will not only improve the business environment for mining
firms but also position them to operate more competitively.

Mineral Revenue Retention Policy

The Ministry of Finance has informed the Chamber of its intention to standardize mineral revenue
retention regimes in the mining industry. It is contemplating a three-tiered retention regime where a
deﬁned proportion of mineral export proceeds will be retained in offshore or local account (at the
company's discretion), local account and the remaining sold to commercial banks under the mandatory
surrender requirement.

The Chamber's preferred model is to retain the existing general practice where mining companies have
binding retention agreements based on their forex requirements. This arrangement allows the mining
companies to honour their external and internal obligations which are usually denominated in foreign
currency. More so, mining companies effectively repatriate foreign currency when they transfer funds
from offshore accounts to settle liabilities to in-country suppliers and manufacturers of inputs. In the
last ﬁve years, the share of mineral revenue returned by the Chamber averaged 70 per cent. Obviously,
this is far in excess of the statutory maximum of 25 per cent of realized mineral revenue anticipated under
the Minerals and Mining Act, 2006 (Act 703).

Apart from disrupting the commercial arrangements between the mines and their suppliers, a variation in
the mineral revenue retention regime will also saddle them with additional transaction costs and
potential delays. Most mines are already operating forex accounts in offshore jurisdictions to meet their
operational and in some cases, debt raising and general ﬁnancing requirements. It would therefore be
duplicative if a company is required to open and maintain another forex account in-country. Moreover, the
bureaucracy associated with transfers from the local forex account will delay payments to vendors and
result in tardy supply of critical spares and equipment. This could ultimately result in unplanned
cessation of mining operations.

Furthermore, the proposal to vary the mineral revenue retention regime could lead to a situation where
the mining companies will queue to access forex to honour their obligations. This will particularly be the
case if mineral receipts from the mining companies are not sequestered but added to the pool of forex
reserves. The ensuing glut in demand may hamper the ability of ﬁnancial intermediaries to meet the large
forex requirements of the mining industry in a timely manner. More so, the additional demand from the
mining industry may exert depreciative pressure on the local currency. In other words, the proposal to
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vary the current mineral revenue retention agreement may have the unintended consequence of
triggering a loss in the value of the country's currency relative to other external currencies.

Since the existing regime allows for seamless and cost effective transactions, the Chamber requests the
Ministry of Finance to retain same. This would not only allow the companies to operate efﬁciently and
cost competitively but also guarantee steady supply of forex to the local ﬁnancial intermediaries.

Issues with Income Tax Act, 2015 (Act 896)

The government passed the Income Tax Act, 2015 (Act 896) with the overriding objective of expanding its
tax base and enhancing tax payments as well as revenue collection. Following the passage of the Act, the
Chamber identiﬁed a number of concerns and raised them directly with the Minister of Finance. The
speciﬁc concerns of the Chamber are as follows:

Ÿ Ring Fencing
Ring fencing is one of the major and fundamental concepts underlying the entire Act 896. In addition to
the general provisions on ring fencing in the Act, there are speciﬁc provisions pertaining to the mining
industry. Section 78 (1) provides that subject to this section, the following shall constitute a separate
mineral operation:
A mineral operation pertaining to each mine, and
A mineral operation with a shared processing facility.

Key to the provisions on ring fencing is the concept of “Shared Processing Facility”. In 2013, the Chamber,
the Ghana Revenue Authority and the Minerals Commission had a workshop to discuss the
implementation of the ring fencing provisions contained in the Internal Revenue (Amendment) Act, 2012
(Act 839). The Chamber outlined key operational reasons why the concept of ring fencing as contained in
Act 592 was not practicable. The concept of “Shared Processing Facility” was introduced and it was
deﬁned to mean “a cluster of processing plants in close proximity”. This was the consensus reached at
the workshop subject to holding subsequent discussions to ﬁne-tune its implementation.

Based on the current wording of Act 896, however, it appears that if a single mine has two processing
facilities, each processing facility shall be ring fenced separately. This raises difficulties on the ground
where ore from different pits is trucked to these facilities. The provision in the Act is not consistent with
the consensus reached at the afore-mentioned workshop. Further, the current wording of the law
artificially creates separate mineral operations and makes it difficult for mining companies to comply
with it from a cost allocation perspective. The law suggests that the mining firm should separately
account for income and expenses for its unnaturally segregated business.

Another key challenge in respect of the ring fencing provisions under Act 839 is the requirement that
each “mining area” be treated as a separate mineral operation and the definition of “mining area” as “the
area designated from time to time by the holder of a mining lease with the approval of the Minerals
Commission,” which is consistent with the definition of mining area in the Minerals & Mining Act, 2006
(Act 703). This Mining Act's definition envisages the routine practice of progressively declaring mining
areas within the mining lease as part of the ongoing plan to develop a single mining operation. In essence,
it recognizes that areas within a mine can be developed over time, but it does not follow that they should
be treated as artificial separate mining operations for tax purposes as required by section 78 (3). To do so
is an impractical and completely uncommercial imposition on mining companies.

For instance, how will ground rent be determined for the various mining areas within the mining lease?
Assuming the determination of the rent is based on area of operation, then a deduction will only be
available for the small proportion of the fees relating to the declared active mining area. The firm will not
be able to offset the ex-mining area costs since there is no income attributable to those areas. More so,
tax deductions could be lost in some declared mining areas if those areas are unprofitable. Of more
importance is the requirement in section 77(5) that “arm's length transaction” pricing rules be applied
between each artificial “mineral operation”. This will create serious tax anomalies. In most cases the
“arm's length” price for toll treating ore is much higher than what could be sustained in an integrated
mining operation comprising multiple pits. For most mines, the feasibility of the entire operation is
dependent on ore from a number of pits being processed through a central processing facility. An “arm's
length” processing price will likely result in losses being recorded by each of the artificial “mineral
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operations” containing pits and a proﬁt and tax being payable by the “mineral operation” which contains
the processing plant. That scenario is not sustainable.

In the light of the serious and hopefully unintended commercial implications resulting from the deﬁnition
of “mining area” and the requirement to treat each mining area as a separate operation for tax purposes,
together with the practical challenges with the concept of ring fencing, we propose that the GRA suspend
the enforcement of these provisions as it dialogues with the Chamber to ﬁnd a common position. In the
petroleum industry, it is comparatively easier to ring-fence on a well by well basis. However, the same
practice cannot practically be transferred to the mining industry, especially surface mines, where there
is transferability of ore from different pits.

Ÿ Limitations on Deductibility of Payment for Services to Non- Residents

Under the erstwhile tax laws, non-resident persons were effectively taxed under the withholding tax
system. However, the new income tax appears to deny a deduction for expenditure where the income for
the service provider is not sourced from Ghana. Speciﬁcally, section 81 (2) (b) (ii) provides that “the
Commissioner-General shall not allow a deduction for an amount unless that amount is wholly,
exclusively and necessarily incurred in acquiring services or facilities for the mineral operation and is
income of the recipient which has a source in Ghana”. Section 105 (i), also deﬁnes an income to have a
source in Ghana “if it relates to payments for or attributable to employment, service rendered or
forbearance from exercising employment or rendering a service in the country, regardless of the place of
payment”.

These are the unintended consequences of the current wording of the law which the Chamber believes
should not be the case. In its current state, the law is acutely detrimental to the mining industry, which is
also the tax payer.

It is also unclear whether the restrictions in section 81 (2) have the effect of denying deductions for
expenditure such as:
Ÿ Consumables such as fuel or chemicals acquired for use in the mining process (which is the case
unless their purchase is accepted as the acquisition of a valuable asset)
Ÿ Wages of employees (unless they are classiﬁed as services of mining operation)
Ÿ Electricity costs, rent, telephone, among others.
Ÿ In view of the nebulous nature of the law, we request the GRA to take a second look at the wording of
the law and address the concerns raised.

Ÿ Thin Capitalization
The Income Tax Act extends thin capitalization provisions to restriction of deductions for interest and
foreign exchange losses incurred by a foreign controlled company to all debt from any source. This is a
clear departure from the familiar practice of associating thin capitalization with related party
transactions. In its current form, the Act raises a number of practical questions:
Ÿ What constitute debt since debt has not been deﬁned?
Ÿ At what point during the year of assessment should reference be made to in determining debt for thin
capitalization purposes?
Ÿ What is the make-up of exempt equity? Act 896 is silent on retained earnings and other reserves in
determining what constitutes equity for thin capitalization purposes.
Ÿ At what point during the year of assessment should reference be made in determining equity for thin
capitalization purposes?

The effect of the legislation would stiﬂe the development of new mines or expansion of existing mines
since the non-deductibility of interest and foreign exchange losses will be built into ﬁnancial models used
in the bank's credit decisions. We therefore request the GRA to provide clarity on the interpretation and
application on the provisions of thin capitalization.

Ÿ Artiﬁcial deemed Proﬁts or Loss of deductions on change in shareholdings

Shares held directly or indirectly in a mining company by publicly listed companies should be exempted
from the “look-through” provisions in sections 81 (8) and 62. This is on account of the fact that publicly
listed companies have no control over the sale of their shares and may not be able to trace the beneﬁcial
owners of those shares. In most cases, the Ghanaian mining company, which is the subject of these
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provisions may not have the requisite information to comply with the Act.

We recommend that shareholders of a firm listed on a recognized stock exchange should be treated as
an individual rather than attempting to look through to its individual shareholders. In fact, this “look-
through” provision will stifle exploration and development in the Ghanaian mining industry if not
removed entirely, since it has the effect of creating an artificially determined tax profit for, or denying tax
deductions to, a Ghanaian company when the company inevitably has to source new funds for
exploration or development of a mine.

Certainly, it is not intended that if a foreign shareholder of a Ghanaian mining or exploration company
issues shares to a new shareholder to raise exploration funds for the Ghanaian company in which it has
invested, it will either create a taxable proﬁt or deny future deductions under the market value
provisions of section 83 (2). There is no disposal of an asset and no proﬁt made by any entity, so how can
the Ghanaian exploration or mining company be taxed on the transaction? What should be noted is that
these provisions seek to create a deemed disposal for the Ghanaian company even where the investment
in that company is only a minor part of the investment portfolio of the international investor which has a
change of shareholding. Any investor investing in Ghana would be looking at a perceived triple layer of
tax which would have to be factored into purchase prices, thereby increasing transactional costs.

If the aim of Section 83 is to tax beneﬁts received by the sale of shares in non-Ghanaian entities which
hold indirect interests in Ghanaian mineral assets as their major investment, then the state should
consider replacing Section 83 with a provision which speciﬁcally taxes the sale of those indirect
shareholdings. Keeping in mind that if Section 83 is replaced by such a provision, the tax should only
apply where the investment in the Ghanaian mining company forms a major part of the underlying assets
of the non-resident enterprise whose shares are sold, and should not apply to the sale of shares which
are listed on a recognized stock exchange.

Ÿ Taxation of Dividends
Section 85(1) excludes Ghanaian corporate company shareholders of mining companies from receiving
dividends tax free under section 59 (3) where they own at least one-quarter of the shares in the
company. This provision has the potential of creating double taxation, particularly, in the event that the
dividend paid by the mining company will be taxed by its immediate shareholder and then again when
that shareholder pays a dividend to its shareholder(s). Against this background, we request the GRA to
provide clarity on the appropriate interpretation of this provision.

Ÿ Guidelines for Approved Rehabilitation Funds

In line with section 84 of Act 896, mining companies are eligible for upfront deductions for rehabilitation
payments into an approved rehabilitation fund. The upfront deduction is especially relevant for cash
ﬂow and sustainability of mining operations. However, the GRA disallows the provisional rehabilitation
payments. With this practice, there will be no proﬁts to offset the payments against them by the time a
mine approaches its end of life. The Chamber urges GRA to develop the relevant guidelines to make the
provision effective.

Ÿ Repairs and Improvement (Section 12 Act 896)

The income of a person is calculated by deducting from that income, any expense that is incurred by that
person for the repair or improvement of a depreciable asset of that person, where the repair or
improvement cost:
1. Is for a depreciable asset of that person;
2. Must be wholly, exclusively and necessarily incurred in the production of income from
investment or business in satisfaction of the requirement;
3. Maybe of a capital nature.

However, a deduction granted for a year of assessment with respect to a depreciable asset in a
particular pool of depreciable assets of a person should not exceed 5% of the written down value of the
pool at the end of the year. Any excess for which a deduction is not allowed as a result of the limitation
shall be added to the depreciation basis of the pool to which it relates.

The implication of the section 12 of Act 896 is basically asking tax payers to pay more taxes now by
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restricting the deductible amount for repairs and improvement cost of depreciable assets by carrying
forward any excess of 5 per cent on the written down value of the pool at the end of the year to which the
repairs and improvement cost relates to. Thus, to restrict cost in a particular year and carrying forward
any excess will result in huge amount in tax liability which members' cash ﬂows cannot sustain.

Ÿ Value Added Tax (VAT) Flat Rate Scheme

Unlike the earlier Value Added Tax (VAT) policy which was applicable to suppliers within a defined
threshold, the new 3% VAT flat rate scheme applies to all suppliers, including companies within the
Large Tax Payers Unit. Since all suppliers to the mining companies have been classified as wholesalers
or retailers, the law will impact on the mining sector directly.

Most of the companies that supply products to the mining companies import more than 97% of their
wares and consumables. Already, these companies pay duties and 17.5% VAT paid on the imported
items. With the passage of the new VAT law, companies cannot claw back the 17.5% import VAT as input
VAT. Consequently, the mining companies will bear the 3% VAT in addition to the 17.5% VAT which cannot
be reclaimed, which would be treated as output VAT without any input VAT.

We therefore request that companies should be given the opportunity to claim input VAT suffered
regardless of whether or not they fall within the 3% VAT scheme or alternatively revert to the historical
basis where revenue levels determined the applicability or otherwise of the 3% VAT scheme.

Ÿ Value Added Tax (VAT) on Mining Companies for the Supply of Power
The VAT Act, 2013 (Act 870) stipulates in section 27 that the supply of any form of power heat,
refrigeration or ventilation is a supply of goods. This provision also existed in the now repealed VAT Act,
1998 (Act 546).

The GRA suggests that, as our member companies make their mining facilities/operations available to
service providers, to the extent that these service providers consume electricity on the mine site, that
consumption of electricity should be regarded as a supply of power and should be subject to VAT
accordingly.

We believe that the supply of power issue should be looked at in various applicable contexts depending
on the arrangements entered into between the member mining company and its service provider. This is
on account of the following reasons:

1) Usage of the mine's electricity supply available to all stakeholders

Given the nature of mining (remote location, size of equipment etc.), certain technical and other service
providers must transfer their equipment and specialist staff to the mine site to facilitate service delivery.
In return, the mine makes available to them its facilities, supervisory staff and dedicated space amongst
others. This is a recognized industry practice and the service providers' contractual arrangements and
invoices to the mine take cognizant of this.

As the mine does not generate or supply electricity, all mine staff, contractors and service providers
make use of the same electricity supply and there is no additional charge for electricity consumption. In
such an instance, there has not been a separate supply of power. All service providers (caterers,
transportation services, leisure services, among others) make use of the same electricity supply and the
amount that is billed to the mine takes cognizance of this.

As stated earlier, this is a business wide practice which is prevalent in other industries such as
manufacturing, fabrication, among others.

2) Additional Contractual Charge for electricity consumed by stakeholders

As in the earlier example, service providers transfer their equipment and specialist staff to the mine site
however the mine also makes available to them, a dedicated electricity supply. Such a dedicated
electricity supply is contractually agreed to and chargeable as such and so should be subject to VAT.
In this instance, we would not disagree with the GRA's position that a supply of power has taken place in
accordance with Act 870. We are of the view that the contractual arrangements underpinning dealings
between a mine and its service providers should be thoroughly reviewed in order to determine whether a
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supply of power has indeed taken place.
For example:
Ÿ Does the service provider need a certain quantum of uninterrupted power in order to operate?
Ÿ Does the contract stipulate that there will be an additional charge for electricity consumed?
Ÿ Does the mine make the same electricity available to all of its service providers to enable them
deliver on their obligations?
Ÿ Does the mine proﬁt from there being a separate charge for electricity?

Whilst these are not exhaustive, they do attempt to distinguish whether electricity is available to all or
whether indeed a separate supply of power has taken place. In the case of the former, VAT is not
applicable. For the latter, VAT is duly applicable.

Ÿ Publication of Tenth Edition of Mining List

The Chamber liaised with the Sector Ministry, Minerals Commission, Customs Division of GRA and
Ministry of Finance to review the Mining List to conform to technological advancements and ECOWAS
Common External Tariff Regime. After thorough consultative stakeholder engagements, the parties
ﬁrmed up the Mining List and forwarded same to the Ministry of Finance and the Sector Ministry through
the Minerals Commission. The Chamber courts the support of the Sector Ministry in facilitating the
expeditious consideration and publication of the tenth edition of the Mining List.

In a related matter, the Chamber would like to draw the Sector Ministry's attention to the Ministry of
Finance's intention to exclude consumables from the Mining List. According to the Ministry of Finance,
the statutes governing exemptions regime in the mining sector do not provide for the inclusion of
consumables on the Mining List. Consequently, the Ministry of Finance will disallow exemptions on
consumable items imported by mining companies. Clearly, this intention, which is premised on a strict
interpretation of the law, would invariably culminate in additional cost for the mines and service
providers. It is a well-known fact that expenditure on consumables constitute a major outgoing in the
mining industry. For such reasons, consumables have traditionally been considered as part of the Mining
List. More so, expenditure on consumables have been factored into the economic viability of the mines.
Clearly, a variation in the exemptions regime will impact on a company's life of mine. Accordingly, the
Chamber solicits the government's support in retaining consumables on the Mining List.

Advocacy Issues
Ÿ Incentives for Exploration Companies
The relevance of exploration in ensuring a pipeline of future viable projects cannot be over-emphasized.
It is the single most critical activity that guarantees continuous production of mineral and discovery of
new mineral resources to supplement production from existing mines or replace output of mines whose
economic ore body is exhausted. However, exploration investment in Ghana has declined signiﬁcantly in
recent years. This is alarming for a country to which mining is critical for forex and ﬁscal revenue
generation among others.

Given that exploration is capital intensive and associated with high risk, it would be prudent for the
government to relieve exploration companies from the payment of upfront costs. This would facilitate
effective exploration and consequent commercial ﬁnds. Accordingly, it is crucial to put in place an
incentive scheme that will reduce the cost associated with exploration and therefore attract the
required critical investments into this high risk business of mineral exploration.

As a first step, we request government to exempt exploration companies from payment of VAT on big
ticket cost items such as Drilling and Laboratory Services. In Ghana, VAT is payable on exploration
expenditure and it cannot be recovered by the exploration companies unless they make a commercial
find and commence production. This implies that where exploration is unsuccessful, VAT would not be
recoverable. Effectively, the extent of actual exploration activity is diminished by upfront costs such as
VAT on inputs. Thus, relieving the usually illiquid exploration companies from the payment of VAT would
not only improve their cash flow and reduce their operational costs but also enhance the country's image
as a competitive destination for exploration investment. In the longrun, this will guarantee continuous
mineral production and flow of fiscal and forex receipts as well as other benefits from the minerals
sector.
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Ÿ Harmonization of Royalty Regime
Following consultations with stakeholders of the mining industry, section 25 of the Minerals and Mining
Act, 2006 (Act 703) was amended by the repeal of the Mining (Amendment) Act, 2010 (Act 794) and
substituted with a provision that gives discretionary powers to the Minister responsible for mining to
prescribe the rate and manner for payment of royalty to the Republic. These amendments are contained
in the Minerals and Mining (Amendment) Act, 2015 (Act 900). Although, the Minister is yet to publish
regulations on the rate and manner for the payment of royalty almost two years after the passage of Act
900, some mining companies continue to pay an amount equivalent to 5% of mineral revenue as required
in the amended Act while others are required to pay a variable royalty rate as shown in Table 4.0. The
latter are mines that have investment agreements with the state and are relatively large gold producers.

Table 4.0: Renegotiated Royalty Rates in Investment and Development Agreements

Royalty Rate (%) Gold Price (USD per ounce)
3.0 Less than $1,300
3.5 $1,300- $1,449.99
4.0 $1,450- $2,299.99
5.0 $2,300 and above
Source: JSE, 2016

In the considered view of the Chamber, the adoption of a sliding scale royalty regime based on the price
of mineral is commendable as it enhances predictability and accommodates the volatile mood swings of
the minerals market, especially the price of gold, the preponderant mineral mined in Ghana.

On the downside, however, the selective application of the variable royalty regime culminates in a
situation where mid-tier mines bear a greater ﬁscal burden. The current situation does not encourage
marginal and mid-tier mines to increase investment and may reduce mine development, which could be
inimical to the sustainability of the mining industry. It may also result in high-grade mining and the
associated sub-optimal development and harnessing of the country's mineral endowment. High grade
mining is a form of mining that focuses on extraction of high grade ore to the exclusion of lower grade,
potentially proﬁtable ore, which would not allow the country to realize the full potential mineral
revenue, including multipliers.

Furthermore, the state involuntarily penalizes the medium and marginal mines during periods of
sluggish commodity prices. In the long run, the critical investments which are needed to supplement or
extend the life of existing mines may not materialize since the companies may invest the capital in other
mining jurisdictions with competitive royalty rates. Naturally, this will shrink Government revenue and
weaken the State's ability to grow the economy on the back of the minerals industry.

The Chamber therefore requests the government to adopt a common sliding-scale royalty regime for
the mining industry.

Operational Issues
Ÿ Delays in Issuance of Environmental Permits
The lack of adequate personnel at the Environmental Protection Agency (EPA) to review permit
applications causes long delays in approval of same. The unpredictable lead times for issuing permits by
the EPA adversely affect project planning and execution. It also impacts negatively on raising of
investment capital for projects since it creates uncertainty regarding cash ﬂows and other project
metrics. A survey by the Fraser Institute in 2017 showed that most investors were concerned about the
long lead time for the approval of environmental permits for both mining and exploration ﬁrms. We
therefore urge government to improve the human resource capacity of EPA.

Ÿ Withdrawal of Troops from Mining Companies

Over the years, the Chamber and its producing member companies have received the support of the
security agencies in protecting assets at the mines. In particular, the Chamber's relationship with the
Ghana Armed Forces was formalized through a Memorandum of Understanding (MoU) which was ﬁrst
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signed in 2014. Under this arrangement, some military personnel were deployed to the mines to provide
a range of high level and strategic services to support the operations of mining companies. Generally,
this excludes guard duties or any other activities that bring the ofﬁcers in close proximity with civilians.
As a matter of fact, the presence of military personnel on the mines is basically to deter crime and
complement the mining companies' internal security arrangements.

However, the government decided to withdraw military ofﬁcers from the concessions of mining
companies on 31st January, 2019. This measure ushered in serious security challenges for the
operating mines. Firstly, the Minerals and Mining (Explosives) Regulations, 2012 (L.I. 2177) provides
that magazines for storing explosives should be manned by highly competent security persons.

The civilian guards who used to undertake such duties were unable to ward off armed intruders from
stealing explosives. In view of the risk the development posed to the country's security, an agreement
was reached among National Security, Minerals Commission and mining companies for armed military
persons to permanently protect explosives magazines.

Thus, the pull-out of troops from the mines would lead to a situation where the mines may not be able to
effectively safeguard such critical installations. In the context of recent happenings in the sub-region,
this development could even be a fertile ground for coordinated attacks on the mines.

Further, the mine sites and their host communities are usually targets for sophisticated crimes which
cannot be easily repelled by internal security ofﬁcers. Indeed, the severity of the situation led to the
deployment of military persons in mining communities under “Operation Calm Life” several years ago.
The military personnel were accommodated at the mines at the behest of government due to the inability
of local government authorities to provide the required logistics.

In essence, the presence of military officers at the mines was in service to the nation even as they
protected a natural resource which was owned by the good people of Ghana. The level of crime in such
areas have not remarkably improved to warrant a withdrawal of military officers. Accordingly, the
Chamber urges the state to deploy police officers to complement private security personnel to protect
life, limp and property at the various mines.

Ÿ Deplorable State of Railway Infrastructure

The Western railway line, which was the primary mode of hauling bulk minerals to the Takoradi port, has
deteriorated over the years as a result of obsolescence and limited investments. Consequently, the bulk
mining companies, like the other producers of bulk export commodities, have had to make use of the
more expensive road system.

For instance, Ghana Manganese Company hauled only 15.6 per cent of its shipment via the western
railway line and a large part by road. It is estimated that the cost of road haulage is 50 per cent more
expensive than the alternative of using the railway lines. This erodes the bottom line of the bulk mineral
producers and could compel them to fold up prematurely if a solution is not found sooner.

Successive Budget Statements and Economic Policies point out the intention of government to
rehabilitate the western rail network. Unfortunately, this is yet to happen, even though the beneﬁts of a
well-functioning railway system will not be a preserve of the mining industry but the entire economy. It
could also serve as an alternative means of transporting life, foodstuff and other commodities across
the country.

The Chamber is therefore pleased at government's efforts to rehabilitate the country's railway network,
particularly, the western railway line. We urge government to expedite action in that regard since it has
the inherent potential to generate revenue to pay back the initial investment cost.
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Statistical Appendix
Appendix 1: Output and Shipments of Producing Member Companies
Company 2018 2019 % Change
Gold (Ounces)
Newmont Ghana Gold Limited 436,106 643,067 47%
Gold Fields Ghana Limited 524,869 519,072 -1%
Newmont Golden Ridge Limited 414,427 422,099 2%
AngloGold Ashanti Iduapriem Limited 253,487 274,665 8%
Asanko Gold Mines Limited 223,152 251,044 12%
Abosso Goldﬁelds Limited 180,844 208,381 15%
Chirano Gold Mines 226,370 201,037 -11%
Perseus Mining (Ghana) Limited 217,219 179,574 -17%
Golden Star Wassa Limited 149,698 156,168 4%
Adamus Resources Limited 103,731 84,197 -19%
Golden Star Bogoso Prestea Limited 75,087 47,533 -37%
Total Gold Production 2,804,990 2,986,837 6%
Manganese (Tonnes)
Ghana Manganese Company 4,551,754 5,383,014 18%
Source: Ghana Chamber of Mines (2020)

Appendix 2: Mineral Revenue of Producing Member Companies (US$)

Name of Company 2018 2019 % Change
Newmont Ghana Gold Limited 552,814,514 889,522,223 61%
Gold Fields Ghana Limited 666,903,612 720,369,121 8%
Newmont Golden Ridge Limited 525,562,745 594,777,021 13%
AngloGold Ashanti Iduapriem Limited 322,611,642 390,021,741 21%
Asanko Gold Mines Limited 285,008,422 343,187,228 20%
Abosso Goldﬁelds Limited 228,953,694 288,346,709 26%
Chirano Gold Mines 285,981,659 281,559,113 -2%
Perseus Mining (Ghana) Limited 276,642,909 245,169,396 -11%
Golden Star Wassa Limited 190,015,785 217,382,101 14%
Adamus Resources Limited 131,032,157 119,272,938 -9%
Golden Star Bogoso Prestea Limited 95,837,297 66,820,357 -30%
Ghana Manganese Company Limited 297,006,753.99 415,194,770.23 40%
Total 3,858,371,189 4,571,622,718 18%
Source: Ghana Chamber of Mines (2020
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Appendix 3: All-In Sustaining Cost of Gold Producing Member Companies (US$/Ounce)
Company 2018 2019 % Change
Newmont Ghana Gold Limited 864 820 -5%
Gold Fields Ghana Limited 951 958 1%
Newmont Golden Ridge Limited 705 718 2%
AngloGold Ashanti Iduapriem Limited 977 890 -9%
Asanko Gold Mines Limited 1,072 1,112 4%
Abosso Goldﬁelds Limited 813 809 -0.5%
Chirano Gold Mines 889 1,082 22%
Perseus Mining (Ghana) Limited 1,129 985 -13%
Golden Star Wassa Limited 886 922 4%
Adamus Resources Limited 981 1,089 12%
Golden Star Bogoso Prestea Limited 1,558 1,937 24%
Average 984 1,029 4%
Source: Ghana Chamber of Mines (2020)

Appendix 4: Volume of Gold Assayed by Precious Minerals Marketing Company for Licensed
Gold Exporting Companies
NAME OF COMPANY 2018 2019 % Change
In-Country Purchases
A. A. MINERALS LTD 409,933 - -100%
ABLE GRAND RESOURCES CO. LTD - 1,400
ARIMA INTRA GHANA LTD - 5,267
ASANSKA JEWELLERY LTD 11,529 22,459 95%
ASAP VASA COMPANY LTD 30 2,875 9,373%
ATHENA INTERNATIONAL LTD - 74,698
AU RESOURCES GHANA LTD 10,757 96,286 795%
BGC INTRNATIONAL 4,409 - -100%
BLAZE METALS - 41,655
BRENLEY QUARTZ CO. LTD - 19,001
BULLIONS RESOURCES LTD 470 - -100%
COVENANT MINERALS LTD - 89,760
E.A.R LOGISTICS - 14,233
FIORE INTERNATIONAL LTD - 178
GEOSPENCE GHANA LTD 96,471 853 -99%
GOLD COAST REFINERY LTD 57,519 176,905 208%
GOLD RECOVERY GHANA LTD 2,241 815 -64%
GOLDEN EMPIRE LEGACY LTD - 123,273
GOLDRIDGE GHANA LTD - 26,351
GRAND EXCHANGE GHANA LTD 45 - -100%
GULDREST RESOURCES CO. LTD 290 2,971 924%
ITALTEC GHANA LTD 272,395 - -100%
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JORLY MINERALS LTD - 12,001
KYEI & AMANKWAA CONSULTING LTD - 37,451
M & C LOGISTICS AND TRADING CO. LTD 30 778 2514%
MENZGOLD GHANA 50,960 - -100%
MICROGOLD TRUST LTD - 95,579
MONEX MINING COMPANY LTD 23,951 238,933 898%
NAPARI COMPANY LTD - 99,864
O. M MINERALS GHANA LTD 233,441 1,617 -99%
PREMETEX GHANA LTD - 31,317
RAFMOH GOLD LTD - 9,527
RG RESOURCES 457,273 - -100%
RINGMEAD GOLD 3 - -100%
SAHARA ROYAL GOLD REFINERY 302,863 - -100%
SAMASKA COMPANY LTD - 122,633
STELNA SOLUTIONS LTD 21,257 955 -96%
SWB4 COMPANY LTD 575 6,335 1002%
VIMSTAR LTD 29,159 231,917 695%
SUB - TOTAL 1,985,600 1,587,888 -20%
Trans-shipment
A.A MINERALS 269,285 - -100%
SAHARA ROYAL 279 - -100%
GRAND TOTAL 269,564 - -100%
Source: PMMC (2020)
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Appendix 5

Box 1.0: Composition of All-In-Sustaining Cost

Labour,
Mining Cost Electricity,
Fuel, etc.

Ore Processing Cost

Mine Site General and

Administrative Cost
Dore Freight, Third
Party Treatments,
Dore/Concentrate Reﬁning Charges,
Expense By-Product Credits

Cash Operating Costs

Production Taxes

Reclamation and
Corporate/ Head
Ofﬁce Expenses Remediation
Expense,
Exploration Costs,
Sustaining Capital
Sustaining
Expenditure Expenditure

All-In Sustaining Cost

Source: Based on formula of World Gold Council (2019)

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FINANCIAL
STATEMENTS
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The Ghana Chamber of Mines
Statement of Council's responsibilities
In accordance with the requirements of section 136 of the Companies Act, 2019, (Act 992), the
Council members have the pleasure in presenting the report of the Chamber for the year ended 31
December 2019.

Principal activities
The Ghana Chamber of Mines is the main minerals industry association in Ghana. The Chamber
represents the collective interests of companies involved in mineral exploration, production and
processing in Ghana. Its activities are entirely funded by its member companies, which produce
majority of Ghana’s mineral output. The Chamber has represented the industry’s interests since
1928.

Financial results
The summary of the ﬁnancial results of the Chamber are set out below:

2019 2018
GH¢ GH¢
Balance as of 1 January 2019 5,759,392 9,063,534

Surplus/deﬁcit 618,685 (3,304,142)

Balance as of 31 December 2019 6,378,077 5,759,392

Interest register
There were no entries in the interest register for the year 2019 (2018: nil).

Auditor
In accordance with section 139(5) of the Companies Act 2019, Act 992, the Auditors, Messrs. Deloitte
& Touché, continue in ofﬁce as Auditors of the Chamber.

Audit fees
The audit fees for the year is GH¢ 80,026 (2018: GH¢ 57,600).

Steps taken to build capacity of Council Members

The Council Members have been on continuous training and have attended conferences and trainings
worldwide to improve their experience at their organisational level. We believe these experiences will
build the capacity of the Council Members to discharge their duties.

Going concern
The Council Members are satisﬁed that the Chamber has access to adequate resources to continue in
operational existence for the foreseeable future.

…………………………………. …………………………
Council Member Council Member
Date: Date:
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The Ghana Chamber of Mines
Statement of Council's responsibilities
The Council is responsible for preparing financial statements for each financial period which give a
true and fair view of the state of affairs of the Chamber at the end of the financial year and of the
excess of income over expenditure of the Chamber for that period. In preparing those financial
statements, the Council is required to:

Ÿ Select suitable accounting policies and then apply them consistently

Revenue 4 7,959,325 7,404,599

Investment income 5 274,163 669,011

Other income 6 126,886 835,159

8,360,374 8,908,769

General & administrative expenses 7 (7,673,148) (12,045,658)

Surplus/(deﬁcit) before taxation 687,226 (3,136,889)

Taxation 8 (68,541) (167,253)

Other comprehensive income - -

Total comprehensive income 618,685 (3,304,142)

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Statement of ﬁnancial position
As at 31 December 2019

Notes 2019 2018

GH¢ GH¢
Non current asset

Property and equipment 9 7,112,551 7,401,607

7,112,551 7,401,607

Current Assets
Receivables 10 398,445 378,238
Held to maturity investments 11 - 1,300,000
Cash and bank 12 360,072 1,323,654

758,517 3,001,892

Total assets 7,871,068 10,403,499

Funds and equity

Stated capital 3 3
Accumulated fund 6,378,077 5,759,395

6,378,080 5,759,398

Current liabilities
Other payables 13 943,292 4,124,775
Accruals 14 276,232 179,669
Taxation 8 68,541 167,253
Other long term employee beneﬁts 15 204,923 172,404

1,492,988 4,644,101

Total equity and liabilities 7,871,068 10,403,499

The ﬁnancial statements on pages 109 to 135 were approved for issue by the Council on ………….... 2020 and signed
on its behalf by:

…………………………………. …………………………
Council Member Council Member
Date: Date:
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Statement of changes in equity
For the year ended 31 December 2019
Stated Accumulated
Capital Fund Total
GH¢ GH¢ GH¢

Balance as of 1 January 2019 3 5,759,392 5,759,395

Surplus - 618,685 618,685

Balance as of 31 December 2019 3 6,378,077 6,378,080

Balance as of 1 January 2018 3 9,063,534 9,063,537

Deﬁcit - (3,304,142) (3,304,142)

Balance as of 31 December 2018 3 5,759,392 5,759,395

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Statement of cash ﬂows
For the year ended 31 December 2019

2019 2018
GH¢ GH¢
Operating activities
Surplus/(deficit) before taxation 687,226 (3,136,889)
Non-cash adjustment to reconcile profit before tax
to net cash flows:
Depreciation of property, plant and equipment 348,906 135,018
Profit on disposal of property, plant and equipment - (89,576)

Working capital adjustments:

Change in receivables (20,207) 2,267
Change in accounts and other payable (3,181,486) 3,720,171
Change in accrued charges 96,563 13,809
Other long term employee beneﬁts 32,519 (26,354)

Net cash ﬂows from operating activities (2,036,479) 618,446

Tax paid (167,253) (338,408)

Investing activities
Redemption of investment 1,300,000 5,739,208
Purchase of property, plant and equipment (59,850) (4,924,599)
Proceeds from sale of property, plant and equipment - 93,692

conditions and an assessment of both the e.g. a significant increase in the credit
current as well as the forecast direction of spread, the credit default swap prices for the
conditions at the reporting date, including time debtor, or the length of time or the extent to
value of money where appropriate. which the fair value of a financial asset has
been less than its amortised cost;
For all other financial instruments, the Chamber Ÿ Existing or forecast adverse changes in
recognises lifetime ECL when there has been a business, financial or economic conditions
significant increase in credit risk since initial that are expected to cause a significant
recognition. However, if the credit risk on the decrease in the debtor’s ability to meet its
financial instrument has not increased debt obligations;
significantly since initial recognition, the Ÿ An actual or expected significant
Chamber measures the loss allowance for that deterioration in the operating results of the
financial instrument at an amount equal to debtor;
12-month ECL. Ÿ Significant increases in credit risk on other
financial instruments of the same debtor;
Lifetime ECL represents the expected credit Ÿ An actual or expected significant adverse
losses that will result from all possible default change in the regulatory, economic, or
events over the expected life of a financial technological environment of the debtor that
instrument. In contrast, 12-month ECL results in a significant decrease in the
represents the portion of lifetime ECL that is debtor’s ability to meet its debt obligations.
expected to result from default events on a
financial instrument that are possible within 12 Irrespective of the outcome of the above
months after the reporting date. assessment, the Chamber presumes that the
credit risk on a financial asset has increased
(i) Significant increase in credit risk significantly since initial recognition when
In assessing whether the credit risk on a contractual payments are more than 30 days
financial instrument has increased significantly past due, unless the Chamber has reasonable
since initial recognition, the Chamber compares and supportable information that demonstrates
the risk of a default occurring on the financial otherwise.
instrument at the reporting date with the risk of a
default occurring on the financial instrument at Despite the foregoing, the Chamber assumes
the date of initial recognition. that the credit risk on a financial instrument has
not increased significantly since initial
In making this assessment, the Chamber recognition if the financial instrument is
considers both quantitative and qualitative determined to have low credit risk at the
information that is reasonable and supportable, reporting date.
including historical experience and
forward-looking information that is available A financial instrument is determined to have low
without undue cost or effort. Forward-looking credit risk if:
information considered includes the future (1) The financial instrument has a low risk of
prospects of the industries in which the default,
Chamber's debtors operate, obtained from (2) The debtor has a strong capacity to meet its
economic expert reports, financial analysts, contractual cash flow obligations in the near
governmental bodies, relevant think-tanks and term, and
other similar organisations, as well as (3) Adverse changes in economic and business
consideration of various external sources of conditions in the longer term may, but will not
actual and forecast economic information that necessarily, reduce the ability of the borrower to
relate to the Chamber's core operations. fulfil its contractual cash flow obligations.

In particular, the following information is taken (i) The Chamber considers a financial asset to
into account when assessing whether credit risk have low credit risk when the asset has external
has increased significantly since initial credit rating of ‘investment grade’ in accordance
recognition, an actual or expected significant with the globally understood definition or if an
deterioration in the financial instrument’s external rating is not available, the asset has an
external (if available) or internal credit rating; internal rating of ‘performing’. Performing
Ÿ Significant deterioration in external market means that the counterparty has a strong
indicators of credit risk for a particular financial position and there is no past due
fi n a n c i a l i n s t r u m e n t , amounts.
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Measurement and recognition of expected credit ECL are no longer met, the Chamber measures
losses the loss allowance at an amount equal to
The measurement of expected credit losses is a 12-month ECL at the current reporting date,
function of the probability of default, loss given except for assets for which simplified approach
default (i.e. the magnitude of the loss if there is a was used.
default) and the exposure at default. The
assessment of the probability of default and loss The Chamber recognises an impairment gain or
given default is based on historical data adjusted loss in profit or loss for all financial instruments
by forward-looking information as described with a corresponding adjustment to their
above. carrying amount through a loss allowance
account, except for investments in debt
As for the exposure at default, for financial instruments that are measured at FVTOCI, for
assets, this is represented by the assets’ gross which the loss allowance is recognised in other
carrying amount at the reporting date; for comprehensive income and accumulated in the
financial guarantee contracts, the exposure investment revaluation reserve, and does not
includes the amount drawn down as at the reduce the carrying amount of the financial asset
reporting date, together with any additional in the statement of financial position.
amounts expected to be drawn down in the
future by default date determined based on Derecognition of financial assets
historical trend, the Chamber's understanding of The Chamber derecognises a financial asset only
the specific future financing needs of the when the contractual rights to the cash flows
debtors, and other relevant forward-looking from the asset expire, or when it transfers the
information. financial asset and substantially all the risks and
rewards of ownership of the asset to another
For financial assets, the expected credit loss is entity. If the Chamber neither transfers nor
estimated as the difference between all retains substantially all the risks and rewards of
contractual cash flows that are due to the ownership and continues to control the
Chamber in accordance with the contract and all transferred asset, the Chamber recognises its
the cash flows that the Chamber expects to retained interest in the asset and an associated
receive, discounted at the original effective liability for amounts it may have to pay. If the
interest rate. Chamber retains substantially all the risks and
rewards of ownership of a transferred financial
If the Chamber has measured the loss asset, the Chamber continues to recognise the
allowance for a financial instrument at an financial asset and also recognises a
amount equal to lifetime ECL in the previous collateralised borrowing for the proceeds
reporting period, but determines at the current received.
reporting date that the conditions for lifetime
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ANNUAL REPORT 2019

Notes to the ﬁnancial statements
For the year ended 31 December 2019

4 Revenue 2019 2018

GH¢ GH¢

Membership subscription 6,417,454 5,561,467

Image Building Fund (IBF) 1,541,871 1,843,132

7,959,325 7,404,599

2019 2018
5 Investment income GH¢ GH¢

Income from ﬁxed deposits 274,163 669,011

2019 2018
6 Other income GH¢ GH¢

Interest on savings and deposits 21,734 22,050

Interest on staff loans 11,289 3,074
Sale of property, plant and equipment - 89,576
Hiring of conference room 25,133 17,933
Exhibition income 68,730 5,000
Exchange difference - 697,526

126,886 835,159

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ANNUAL REPORT 2019

Notes to the ﬁnancial statements
For the year ended 31 December 2019

7 General & administrative expenses 2019 2018

GH¢ GH¢

Human resource and training 4,614,912 5,695,436

Ofﬁce management 1,419,432 1,208,814
International travels 121,772 79,071
Audit fees 80,026 57,600
Depreciation 348,906 135,018
GHEITI 2,863 14,465
Exchange loss 429,561 -
Impaired investments - 3,350,800

7,017,472 10,541,204

2019 2018
Image building fund expenses GH¢ GH¢

Donation 77,803 329,800

Publicity and advertising 254,723 874,296
Protocol 63,580 57,626
Press soiree 27,408 122,732
Others 89,037 -
UMaT - Environmental Sciences Chair 143,125 120,000

655,676 1,504,454

Total 7,673,148 12,045,658

8 Current tax payable

Year of assessment Balance Charge for Balance

1/1/19 the year Payments 31/12/19

2018 167,253 - (167,253) -

2019 - 68,541 - 68,541

167,253 68,541 (167,253) 68,541

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Notes to the ﬁnancial statements
For the year ended 31 December 2019

2019 2018
Reconciliation of effective tax rate GH¢ GH¢

Proﬁt/loss before tax 687,226 (3,136,889)

Tax computed at applicable tax rate of 25% 171,807 (784,222)

Tax effect of non-taxable income (2,059,940) (2,059,940)
Tax effect of non-deductible expense 3,010,165 3,010,165
Total tax expense (68,541) (167,253)

Effective tax rate (5)% 5%

9a. Property & equipment At Additions/ At

2019 1 Jan. transfer 31 Dec.
Cost GH¢ GH¢ GH¢

Leasehold land and buildings 6,617,768 9,600 6,627,368

Motor vehicles 445,395 - 445,395
Furniture, ﬁttings & equipment 712,946 50,250 763,196

7,776,109 59,850 7,835,959

At Charge for At
Depreciation 1 Jan. the year 31 Dec.
GH¢ GH¢ GH¢
Leasehold land and buildings 38,080 132,355 170,435
Motor vehicles 232,302 79,822 312,124
Furniture, ﬁttings & equipment 104,120 136,729 240,849

374,502 348,906 723,408

Net book value

At 31 December 2019 7,112,551

At 31 December 2018 7,401,607

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ANNUAL REPORT 2019

Notes to the ﬁnancial statements
For the year ended 31 December 2019

Property & equipment At Additions/ Disposal/ At

2018 1 Jan. transfer transfer 31 Dec.
Cost GH¢ GH¢ GH¢ GH¢

Leasehold land and buildings 25,579 6,592,189 - 6,617,768

Motor vehicles 307,549 200,623 (62,777) 445,395
Furniture, ﬁttings & equipment 239,268 587,163 (113,485) 712,946
Work in progress 2,455,376 4,136,813 (6,592,189) -

3,027,772 11,516,788 (6,768,451) 7,776,109

At Charge for At
Depreciation 1 Jan. the year Disposal 31 Dec.
GH¢ GH¢ GH¢ GH¢

Leasehold land and buildings 4,607 33,473 - 38,080

Motor vehicles 208,783 86,296 (62,777) 232,302
Furniture, ﬁttings & equipment 198,240 15,249 (109,369) 104,120

411,630 135,018 (172,146) 374,502

At 31 December 2018 7,401,607

2019 2018
10 Receivables GH¢ GH¢

Members receivables 449,685 344,996

Provision for bad and doubtful debt (449,685) (344,996)

- -
Staff Receivables 221,686 229,930
Prepayment 123,585 73,166
Other receivables 53,174 75,142

398,445 378,238
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ANNUAL REPORT 2019

Notes to the ﬁnancial statements
For the year ended 31 December 2019
11 Held to maturity investments 2019 2018
GH¢ GH¢

Fixed Deposits - 1,300,000

2019 2018
12 Cash and bank balances GH¢ GH¢

Current account balances 360,042 1,323,643

Petty cash account 30 11

360,072 1,323,654

2019 2018
13 Payables GH¢ GH¢

Members Companies 29,000 2,642,170

Sundry creditors 914,292 1,482,605

943,292 4,124,775

14 Accruals 2019 2018

GH¢ GH¢

Accrued charges 194,855 122,069

Audit fees 81,377 57,600

276,232 179,669

15 Other long term employee beneﬁts 2019 2018

GH¢ GH¢

Long term beneﬁts accrued 204,923 172,404

The policy on other long term employee benefit for junior staff is to enjoy their one month salary for every five
years spent. Management and senior staff are given benefits in kind and 10 days for every year served at the
time of retirement.
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ANNUAL REPORT 2019

The range of actuarial assumptions applied in calculating the liabilities for other long-term employee
beneﬁts is as follows:
2019 2018 2017

Discount rate 14.7% 14.7% 13.0%

Salary increase 6.0% 6.0% 5.0%

16 Financial risk management

The Chamber's activities expose it to a variety of risks, including, financial risk, credit risk, foreign
currency exchange rates and interest rates. The Chamber's overall risk management programme
focuses on the identification and management of risks and seeks to minimise potential adverse effects
on its financial performance, Investment policies are in place which help manage liquidity, and seek to
maximise return within an acceptable level of interest rate risk.

This section summarises the way the Chamber manages key risks:
The Chamber controls and manages the ﬁnancial risks connected to the business segments with the
objective of limiting these risks.

The identification, analysis and valuation of financial risks as well as the decision concerning the
application of financial instruments to manage these risks are carried out essentially by the Chamber's
Management and the Finance and Budget Committee.

The Chamber's activities expose it to a variety of financial risks: Market risk (including currency risk and
interest rate risk), credit risk and liquidity risk. The Chamber's overall risk management programme
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on
its financial performance, but the Chamber does not hedge any risks.

Market risk
Foreign exchange risk
The Chamber operates locally and is exposed to foreign exchange risk arising from various currency
exposures, primarily with respect to the US dollar bank accounts denominated in foreign currency.
Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities.
2019 2018
GH¢ GH¢

Assets 2,654 4,750

The following table details the Chamber's sensitivity to a 10% increase and decrease in the cedi against
the US Dollar. A 10% sensitivity rate is used when reporting foreign currency risk internally to key
management personnel and represents management's assessment of the reasonably possible change
in foreign exchange rates. For each sensitivity, the impact of change in a single factor is shown, with
other assumptions unchanged.

31-Dec-19 Scenario 1 Scenario 2

Amount 10% increase 10% decrease
GH¢ GH¢ GH¢

Surplus 687,226 755,949 618,503

Funds and equity 6,378,080 7,015,888 5,740,272

Assuming no management actions, a series of such rises would increase surplus for 2019 by GH¢ 71,975
while a series of such falls would decrease surplus for 2019 by GH¢ 71,975. Also a series of such rises
would increase the funds and equity by GH¢ 641,060 whilst a series of such falls would decrease funds
and equity by GH¢ 641,060.
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ANNUAL REPORT 2019

The following signiﬁcant exchange rates were applied during the year:
2019 2019 2018 2018
GH¢ GH¢ GH¢ GH¢
Selling Buying Selling Buying

US Dollar 5.5365 5.5309 4.7300 4.6200

16 Credit risk
The Chamber has exposure to credit risk, which is the risk that member companies are unable to pay
subscriptions in full when due.
Other areas where credit risk arises include cash and cash equivalents, deposits with banks and other
receivables."

The Chamber has no signiﬁcant concentrations of credit risk. The Chamber raises debit notes for
subscriptions to member companies at the beginning of each year. This is based on its planned activities
and programmes for the year. The amount of subscription payable by each member company is based on
the category of the company namely Represented Members, Afﬁliates, Contract Miners and
Associated Members. Limits on the level of subscription payable are approved annually by the Council
Members.

Management information reported to the Council includes details of provisions for impairment on loans
and receivables and subsequent write-offs. No collateral is held for any of the above assets. All
receivables that are neither past due or impaired are within their approved credit limits. All receivables
past due by more than 180 days are considered to be impaired, and are carried at their estimated
recoverable value.

The Chamber manages the credit quality of ﬁnancial assets using internal credit ratings. The table
below shows the credit quality by class of asset for all ﬁnancial assets exposed to credit risk, based on
the Chamber's internal credit rating system. The amounts presented are gross of impairment
allowances.

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ANNUAL REPORT 2019

Notes to the ﬁnancial statements
For the year ended 31 December 2019

Neither past due nor

2019 impaired

Standard Past due but Individually

High grade grade not impaired impaired Total
GH¢ GH¢ GH¢ GH¢ GH¢

Cash and Bank 360,072 - - - 360,072

Receivables 274,860 - - 449,685 724,545

Totals 634,932 - - 449,685 1,084,617

Neither past due nor impaired

2018

Standard Past due but Individually

High grade grade not impaired impaired Total
GH¢ GH¢ GH¢ GH¢ GH¢

Cash and Bank 1,323,654 - - - 1,323,654

Receivables 305,072 - - 344,996 650,068
Investments 1,300,000 - - 3,350,800 4,650,800

Totals 2,928,726 - - 3,695,796 6,624,522

Age of impaired member receivables

2019 2018
GH¢ GH¢
365 days 449,685 344,996

18.3 Liquidity risk

The liquidity risk is the risk of the Chamber to remain solvent at any time to fulﬁl due obligations in time to
have the possibility of obtaining necessary ﬁnancial means from investors. There is an extensive need for
liquid funds in managing the Chamber.

The Chamber is exposed to daily calls on its available cash for settlement of the Chamber's programs and
administration expenses. Liquidity and financial flexibility at any time is granted through existent liquid
funds and the available financing margin. Based on the results of the Chamber's strategy and the
Chamber planning processes, day-to-day liquidity planning is effected, thus offering a current status of
the estimated casted development of the liquidity. Medium and long term financing needs are determined
by means of this forecast of the expected cash flows.

Prudent liquidity risk management includes maintaining sufﬁcient cash balances, and the availability of
funding from an adequate amount of committed credit facilities.
The table below analyses the ﬁnancial liabilities into the relevant maturity grouping base on the
remaining period at the reporting date to the contractual maturity date."

The amounts disclosed in the table are the contractual undiscounted cash ﬂow, whereas the Chamber
manages the liquidity risk based on a different basis (see note above for details), not resulting in a
signiﬁcantly different analysis.
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ANNUAL REPORT 2019

As at 1-5 years
31 December 2019 Up to 1 month 1-3 months 3-12 months Total

Liabilities GH¢ GH¢ GH¢ GH¢ GH¢

Trade and other
payables 914,292 - - - 914,292
Other long term
employee beneﬁts - - - 204,923 204,923
Accruals 276,232 - - - 276,232

Total liabilities 1,190,524 - - 204,923 1,395,447

Assets
Receivables
(less prepayments) 274,860 - - - 274,860
Investments - - - -
Cash and bank 1,323,654 - - - 1,323,654

Total assets 1,598,514 - - - 1,598,514

Cumulative liquidity
407,990 - - (204,923) 203,067
gap

As at 31 December 2018
Total liabilities 1,662,274 - - 172,404 1,834,678

Total assets 440,387 - 1,300,000 - 1,740,387

Cumulative liquidity (1,221,887) - 1,300,000 (172,404) -94,291
gap

17 Related party transactions

During the year, the following were the related party balances:

17.1 Amount due from related party

There was no amount due to related parties.

17.2 Key management compensation 2019 2018

GH¢ GH¢
Salaries and other short-term employment beneﬁts 1,511,299 1,719,293

18 Capital management
The Chamber is a company limited by guarantee. As a result, the liabilities of its members are limited to
such amount as the members may respectively undertake to contribute to the assets of the Chamber in
the event of its being wound up. The Chamber's objectives when managing capital, which is a broader
concept than the ‘equity’ on the reporting date is to ensure that its stated capital meets the requirement
of the Companies Code.

19 Event after the reporting period

As at the date of the approval of the ﬁnancial statements, management was in the process of assessing
the impact of COVID-19 on its operations. Management, however, does not anticipate the COVID-19 to
have a signiﬁcant impact on its operations.

20 Contingencies
There were no contingent liabilities at the end of the period under review.

21 Commitments
There was no commitment for capital expenditure entered into but not provided for as at 31vDecember
2019 (2018 - nil).
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ANNUAL REPORT 2019

2019MEMBERSHIP
ANNUAL REPORT

GHANA CHAMBER OF MINES

PAGE

ANNUAL REPORT 2019

MEMBERS REGISTER

REPRESENTED MEMBERS – LEVEL A

ADAMUS RESOURCES LIMITED
Accra office
Registered Office : 18 Coleman street, behind Fidelity Bank
Dzorwulu, Accra
Digital Address : GA122-2410
Telephone : (0302) 77 68 71
Fax : (0302) 77 68 71
Nkroful Site:
Postal Address : P.O. Box 31, Esiama, Western Region

ANGLOGOLD ASHANTI LIMITED

Accra Office
Registered Office : Gold House, Patrice Lumumba Road, Roman Ridge, Accra
Postal Address : P. O. Box 2665, Accra
Telephone : (0302) 743401, 743400
Fax : (0302) 778155
E-mail : [email protected]
Website : www.AngloGoldAshanti.com

AngloGold Ashanti Iduapriem Mine

Postal Address : P.O. Box 283, Tarkwa
Telephone : (0302) 652000, 0277 551 777,
0277 551 888, 0244 322 049, 0244 322 066
Fax : (0312) 3 20372
E-mail : [email protected]

ASANKO GOLD GHANA LIMITED

Accra Office
Registered Office : 4 Sir Arku Korsah Rd, Airport Res. Area
Postal Address : P. O. Box CT 6153 Cantonments Accra
Telephone : (0302) 761454 – 0243 690 224
Fax : (0302) 761 454
Email : [email protected]
Website : www.asanko.com

Esaase Project
Postal Address : P.O. Box 50 Nkawie-Toase, Ashanti Reg.
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ANNUAL REPORT 2019

CHIRANO GOLD MINES
Accra office
Registered Office : Block A, 2nd Floor, Office No. 1 (A.S. 1),
Marvel House # 148 Giffard Road,
Cantonments, Accra
Telephone : (0302) 786079
Fax : (0302) 786078
Email : [email protected]
Website : www.kinrossgold.com

Bibiani Site
Postal Address : P. O. Box 57, Bibiani
Telephone : 0244 332 734 – 8
Fax : 0244 391 447

GHANA MANGANESE COMPANY LIMITED

Accra Office
Registered Office : No. 10 3rd Circular Road, Cantonments, Accra
Postal Address : P.O. Box M. 183, Accra
Tel : (0302) - 799 983 / 0244 334 017
Fax : (0302) – 799 981
Website : www.ghamang.com.gh

Nsuta Site
Postal Address : P.O. Box 2, Nsuta Wassaw
Telephone : (03123) - 03 030
Fax : (03123) - 20 443
Email : [email protected]

GOLD FIELDS GHANA

PAGE

ANNUAL REPORT 2019

CONTRACT MINING MEMBERS
AFRICAN MINING SERVICES GHANA
Accra office
Registered Office : No.13, Patrice Lumumba Road,
Airport Residential Area
Postal Address : PMB – K.I.A.
Telephone : (0302) 611733
Fax : (0302) 763274
Email : [email protected]

Tarkwa Site
Postal Address : PO Box 221, Tarkwa
Telephone : (03123) 20348, 20410, 20797, 20798, 20799
Fax : (03123)- 20793, 20794, 20795
E-mail : [email protected]

AFRICAN UNDERGROUND MINING SERVICES

ANNUAL REPORT 2019

AFFILIATE MEMBERS
AFRICAN ENVIRONMENTAL RESEARCH & CONSULTING COMPANY GHANA LTD
Registered Office : G648/3 Samora Machel Street, Asylum Down, Accra
Postal Address : P.O. Box OS 303 Osu, Accra-Ghana
Telephone : 0244 730 395, 0208 982 430
Email : [email protected]

AEL MINING SERVICES LIMITED

Accra Office
Registered Office : No.6 Odoi Kwao Street, Near National Banking College.
Airport Residential Area, Accra
Postal Address : P O Box KIA 30384 Accra
Telephone : (0302)-773849 / 763770/762633
Fax : (0302)-773849
Email : [email protected]

Site Office
Postal Address : P O Box 58, Bogoso, Western Region
Telephone : (0362)-20469 ext 490/1

ANTRAK LOGISTICS GHANA LTD

Accra Office
Registered Office : Mensah Utreh, Harbour Area, Tema
Postal Address : P. O. Box 148, Tema
Telephone : (0303) 218 500
Fax : (0303) 218 501
E-mails : [email protected]

Airport Office
Registered Office : Aviance Cargo Village
Postal Address : P. O. Box CT 3001, Cantonments, Accra
Telephone : (0302) 774 225
Fax : (0302) 776 893
E-mails : [email protected]

BARBEX TECHNICAL SERVICES

Accra Office
Registered Office : No. 3 St. John Methodist Church Rd.Tantra Hill, Accra
Postal Address : P. O. Box GP 208, Accra
Telephone : (0302) 420050/ 0302 - 410176
Fax : (0302) 420051
E-mails : [email protected], [email protected]

Site Office (Tarkwa)

Registered Office : GAG Teberebie Site
Telephone : 0544-350616
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ANNUAL REPORT 2019

B5 PLUS LIMITED
Registered Office : Kpone Police Barrier Tema
Postal Address : Box 853 Kpone
Telephone : (0243 549 523
E-mail : [email protected]

CARMEUSE LIME PRODUCTS LIMITED

Registered Office : Carmeuse Lime Products (Gh) Ltd., Sofokrom House
Postal Address : P. O. Box 1163, Takoradi
Telephone : (03120)- 92199/91145
Fax : (03120) - 46072
E-mail : [email protected]

CHAMPION OIL LIMITED

Registered Office :Dakwa House, Adabraka
Postal Address : Box AD 218 Adabraka
Telephone : (024-4958357
E-mail : [email protected]

CUMMINS GHANA LIMITED

Registered Office : Former KTS Yard, South Odorkor, Winneba Road
Postal Address : P. O. Box WJ 773 Weija Accra
Telephone : (0302) 301 451
Fax : (0302) 301 201
E-mail : [email protected]
[email protected]
[email protected]

DHL GLOBAL FORWARDING

Registered Office : 53 Patrice Lumumba Road, Airport Residential Area
Postal Address : P. O. Box DTD 36 Cantonments, Accra
Telephone : (0302)–742 444/ 0501298450
Fax : (0302)-774798
Email : [email protected]

DRA GHANA LTD

Registered Office : 25Bathur St, East Legon
Postal Address : Box MD 1027 Madina
Telephone :0302554223
Email : [email protected]

ELECTROFAX ENGINEERING SERVICES

Registered Office : Comm.25, Block # 55B & 55A Link Str. Tema
Postal Address : PO Box 46 Tarkwa
Telephone : (03123) 20074 / 20178
Fax : (03120) 28704
Email : [email protected]
145

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ANNUAL REPORT 2019

GHANA OIL COMPANY LTD
Registered Office : Junction of Kojo Thompson and Adjabeng Roads,
House No. D659/4, Accra
Postal Address : P. O. Box GP 3183, Accra
Telephone : (+233) 30-2688-215 / 0540-127100 / 050 162 3383
Email : [email protected]

GOLDER ASSOCIATES (GH) LIMITED

Registered Office : 33A Senchi Street, Airport Res. Area
Postal Address : PO Box Ka16092, K.I.A. Accra.
Telephone : (0302) - 779124
Email : [email protected] , [email protected]

HYSPEC GHANA LIMITED

Registered Office : His Majesty Building, Axim Road, Esikafoambantsem
Opposite Royal Bank, Takoradi
Tarkwa Office
Registered Office : No. 33 Sector 7B, Tamso/Bankyim, Tarkwa
Postal Address : P.O. Box 362, Tarkwa
Telephone : (03120)-32352
Fax : (03120)-32243
E-mail : [email protected], [email protected]

INTERPLAST LIMITED
Registered Office : Plot No. 109, Spintex Road
Postal Address : P.O. Box AD 330, Adabraka, Accra.
Telephone : (0302) - 812799/ 819000
Fax : (0302) - 813490
E-mail : [email protected], [email protected]

INTERTEK MINERALS LTD

Postal Address : P. O. Box 311, Tarkwa
Telephone : (0312) 320386, 320246
Email : [email protected]

KAL TIRE MINING TIRE GROUP

Site Postal Address : P. O. Box 1152, Takoradi
Telephone : (03120)- 24439, 24296
Fax : (03120)-24313, 22007
Email : [email protected]

KEK INSURANCE BROKERS

Registered Office : KEK House, Airport Res. Area, Senchi St.
Postal Address : P. O. Box AN 6681, Accra-North
Telephone : (0302) - 764023, 764390, 764210
Fax : (0302) - 760614
E-mail Address : [email protected]
Website : http/www.ghanaclassifieds.com/kek
146

GHANA CHAMBER OF MINES

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ANNUAL REPORT 2019

KNIGHT PIESOLD CONSULTING
Registered Office : 20, Second Close, Airport Res. Area,
Postal Address : PO. Box CT4122, Cantonments-Accra
Telephone : (0302) 783060, 784288
Fax : (0302) 783066
Email : [email protected]
Website : www.knightpiesold.com

LIEBHERR MINING GHANA LIMITED

Registered Office : No. 1 A Dr. Amilcar Cabral Close, GA-085-9999
Postal Address : Private Mail Bag, KIA - Accra
Telephone : (0302) 743 777
E-mail Address : [email protected]

LOGISTICS DIRECT LIMITED

Registered Office : 13 Patrice Lumumba Rd. Airport Res. Area, Accra, Ghana
Postal Address : Private Mail Bag, K. I. A., Accra
Telephone : (0302) 770418, 770419
Fax : (0302) 762257
E-mail : [email protected]

MANTRAC CO.
Registered Office : Ring Road West, Accra
Postal Address : P. O. Box 5207, Accra-North
Telephone : (0302)-221980, 225822, 232385
Fax : (0302)-221950

MAXAM GHANA LIMITED

Accra Office : House No. 29, 2nd Circular Road, Cantonments
Postal Address : P. O. Box CT 9053, Cantonments
Telephone : (0302) 797257

Site Office Location : Former SGMC Tech Office, Coronation Hill

Postal Address : P. O. Box 88, Tarkwa
Telephone : (03123) - 20536
Fax : (03123) – 20400
Email: :[email protected]

MESTO GHANA LIMITED

Accra Office
Registered Officer : No. 5 Akosombo Street, Airport Residential Area
Postal Address : P O Box CT 5857 Cantonments Accra
Telephone : (0302) 77 00 24 / 765 939
Fax : (0302) 77 00 25
Email: :[email protected]

MIWATEK GHANA LIMITED

Accra Office
Registered Officer : Ashikakle st. Abelemkpe, Accra
Postal Address : P O Box CT 5857 Cantonments Accra
Telephone : 027790138665
Email: :[email protected]
147

GHANA CHAMBER OF MINES

PAGE

ANNUAL REPORT 2019

NEXANS KABELMETAL (GH.) Ltd.
Site Office Location :Heavy Industrial Area, Tema
Postal Address : P. O. CO 157 Tema Ghana
Telephone : (0303) 304102 / 3
Fax : (0303) 302 184
Email: :[email protected], [email protected]

ORICA GHANA LIMITED

Registered Office : No. 83 Osu Badu Street, Airport Wesr
Postal Address : PMB CT 472 Cantonments, Accra
Telephone : (0302) 767728, 0556 778 134
Email : [email protected]

PANAFRICAN MINING & EQUIPMENT SERVICES GH. LTD

Tarkwa Site Office
Location :Akyempim-Tarkwa,Takoradi Road
Postal Address : P.O. Box NS 61, Nsuta Wassa Tarkwa
Telephone : 0302 - 215 840
Email: :[email protected]

PRICEWATERHOUSE COOPERS
Registered Office :UNA HOUSE, Airport City
Postal Address :PMB CT42 Cantonments
:Accra Ghana
Telephone :(0302) - 761500
Fax. :(0302) - 761544
Email: :[email protected],
[email protected]

RANA MOTORS & METAL WORKS ENGINEERING CO. LTD.

Registered Office : Graphic Road
Postal Address : P. O. Box AN 7617 Accra North
Telephone : (0302)- 226 839
Fax : (0302)-226 793
E-mail Address : [email protected]

RIEPCO GHANA LIMITED

Registered Office : Opposite Cocoa processing, Tema,
Postal Address : P. O. Box 985, Tema
Telephone : (0303) 206365, 206945
Telex : 2355 RIEPCO GH
Fax : (0303)- 207700
E-mail : [email protected], [email protected]

WEST AFRICAN FORGINGS LTD.
Registered Office : Heavy Industrial Area A/44/1, Steel
Work Road (next to Tema Steel.)
Postal Address : PO Box 320, Tema
Telephone : (0303)-302011, 302386, 0243 486570
Fax : (0303)-304908
Email : [email protected]

ZEN PETROLEUM
Registered Office : 13 Patrice Lumumba Rd,
Airport Residential Area, Accra
Postal Address : PO Box CT 3692 Cantonments Accra
Telephone : (0302) 216 660
Email : [email protected]

ASSOCIATE MEMBER INSTITUTIONS

ENERGY FOUNDATION
Registered Office : No. 5 East Legon, Accra
Postal Address : PO Box CT 1671, Cantonments, Accra
Telephone : (0303) 938 222 , 937 247
Fax : (0302) 515 613
Email Address : [email protected]

GHANA ATOMIC ENERGY COMMISSION

Registered Office : Kwabenya, Accra
Postal Address : PO Box LG 80, Legon, Accra
Telephone : (0302) -400310, 400549
Fax : (0302) -400807
Email Address : [email protected]

GEOLOGICAL SURVEY
Registered Office : No.12, 7th Ave, adj. to Ecobank (Gh)
Postal Address : P.O. Box M.80, Accra.
Telephone : (0302) - 679239, 679237
Fax : (0302) - 679238
E-mail : [email protected]

MINERALS COMMISSION
Registered Office : No.9 Switchback Rd. Cantonments
Postal Address : P.O. Box M.248, Accra.
Telephone No : (0302) - 772783, 772786,773053
Fax : (0302) - 773324
E-mail Address : [email protected]
151

GHANA CHAMBER OF MINES

PAGE

ANNUAL REPORT 2019

INSPECTORATE DIVISION, MINERALS COMMISSION
Registered Office : No.9, Switchback Road, Cantonments
Postal Address : P. O. Box 3634, Accra
Telephone : (0302) - 776802

Takoradi Office
Postal Address : P.O. Box 254, Takoradi
Telephone : (0312) 023818, 24919
Fax : (0312) 024344

UNIVERSITY OF MINES & TECHNOLOGY, TARKWA

Registered Office : Tarkwa
Postal Address : P.O. Box 237, Tarkwa
Telephone : (03123) 20492, 20324, 20280
Telephone (Residence) : (03123) 20309, 20324
: (03123) 20280
Fax : (03123) 20306

WOMEN IN MINING
Registered Office : #9 Sir Arku Korsah Road, Airport Residential Area
Postal Address : P.O. Box AN 6398, Accra North
Telephone No : 0302-939-551
E-mail Address : [email protected]
152

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PAGE

ANNUAL REPORT 2019

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