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Mining Sector GDP Contribution Rises   
 
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05-Dec-2018  
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Kwaku Asomah Cheremeh
 
 
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Government says it recorded an increase in the mining sector’s contribution to the country’s Gross Domestic Product (GDP) in the first half of 2018 as compared to the same period in 2017.

Minister of Lands and Natural Resources, Kwaku Asomah-Cheremah, made the disclosure on Tuesday, December 4, 2018 in Accra during the Meet the Press Series organized by the Information Ministry.

According to him, for the first half of 2018, the mining subsector contributed a total of GH¢1.03 billion to government’s revenue collected by the Domestic Tax Revenue Division of the Ghana Revenue Authority (GRA).

“This indicates an increase of 17.11% as compared to the 2017 first half value of GH¢877 million,” he said.

He explained that the sector contributed GH¢17. 1 billion to the country’s GDP in 2017 as compared to GH¢15.8 billion in 2016.

“The increase in revenue is as a result of increase in production of the traditional minerals, coupled with favorable metal price on the international commodities market.”

“It will interest all to know that bauxite production increased by 16% in 2017 to 1.5 million metric tonnes compared to 1.3 million metric tonnes in 2016. Manganese production saw an increase to 3 million metric tonnes in 2017, representing an increase of 49% over 2016 production,” he added.

According to the Minister, for 2018, all minerals, except bauxite, witnessed significant increase in production during the first half as compared to 2017. “Bauxite decreased by 167,000 metric tonnes in the first half of 2018 as compared to the same period in 2017.”

The Minister disclosed that for the first half of 2018, Ghana earned $3.1 billion from the export of minerals, representing 38 percent of total merchandize export.

He also stated that the sector contributed 44 percent to total merchandize exports in 2017, translating into $6 billion compared to $5 billion in 2016.

Investments

The minister revealed that “it’s also worth noting that investments in the mining sector have seen an increase of 7% in 2017. This showed an increase from $970 million in 2016 to $1.04 billion in 2017.”

He indicated that as part of efforts to promote local content in the mining industry in accordance with the Minerals and Mining (General) Regulations, 2012 (L.I.2173), the Ministry, in collaboration with the Minerals Commission, in 2018 identified nine products in addition to existing 19 to be procured locally by mining companies in the country.

The purpose of adding the nine products to the local procurement list for mining industry, he added, is to ensure that goods and services, which are locally available in adequate quantities and at optimal prices and meet the appropriate safety and quality standards are patronized by the mining industry with the view to promoting the growth of the economy, particularly in the manufacturing and services sectors, thereby reducing imports to create employment in the country.

List

He gave the additional local procurement list as follows: security services (exclusive Ghana Directors and Shareholders); Legal Services (exclusive Ghanaians) Insurance Services (strictly incorporated in Ghana), financial services (strictly incorporated in Ghana), contract mining (strictly incorporated in Ghana), fuel (exclusive Ghanaian Directors and shareholders), activated carbon, cable bolt and accessories, split setts, rebars, mining mesh, cupels.
 
 
Source: Daily Guide
 
 

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