Ghana News & Trends

Stakeholders lament growing foreign involvement in mining over reports of Chinese interest in Akyem Mines

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The General Secretary of the Small-Scale Miners Association, Godfred Armah, has raised concerns about the significant revenue losses Ghana faces due to the dominance of foreigners in the country’s mining sector. He emphasized that Ghana only receives tax revenue, highlighting the need for a national policy review to address the extent of foreign control in the industry.

A recent report from the Business and Financial Times revealed Chinese investors’ interest in acquiring stakes in major mining operations, including the Akyem Mines. While there has been no official communication regarding this interest, it has sparked debates about the future of Ghana’s strategic resources.

In an interview on JoyNews AM Show, Godfred Armah questioned how Ghana would benefit if foreigners continued to dominate the mining sector. He pointed out that without addressing this issue, the country would face foreign domination, leading to profits flowing out of Ghana as raw materials are exported without adding value.

Armah proposed a radical approach to tackle the situation, such as implementing a policy that requires miners to refine a portion of the gold they extract and supply it to local jewellers. Currently, most local jewellers source their gold from Dubai because they require refined gold to produce high-quality jewelry.

The Co-Chair of the Ghana Extractive Industry Transparency Initiative (GHEITI), Dr. Steve Manteaw, echoed similar concerns. He highlighted that the increased involvement of foreigners in the sector is partly due to the lack of credit facilities available to local miners for financing their operations.

Manteaw also noted that it is not only Chinese nationals involved in mining in Bole but individuals from Burkina Faso, Mali, Niger, and other countries who finance illegal mining activities. These foreign investors operate informally, evading export regulations and causing Ghana to lose revenue opportunities associated with their activities.

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