Gov’t Begins Bulk Buying of Gold Locally From Sept. 1
Effective next month – September 1, 2022, government, through the Central Bank, will start bulk purchase programme, to buy portions of gold produced by local mining companies across the country, in a bid to raise the gold component of its reserves.
The move, which is described by many as laudable, is expected to strengthen the cedi currency against its current woes, without increasing inflation.
Vice President, Dr. MahamuduBawumia, who disclosed this after a meeting between Bank of Ghana and other stakeholders in the mining industry led by the Deputy Minister of Lands and Natural Resources, George MirekuDuker, on Tuesday, August 9, 2022, said the decision will help shore up the country’s forex reserves; adding that, the payment will be made in cedis.
“The Economic Management Team, the Bank of Ghana, Ministry of Lands and Natural Resources, Minerals Commission and PMMC met with the Ghana Chamber of Mines this morning, to draw a roadmap for the implementation of the Bank of Ghana’s Gold Purchase Program across the industry”.
“It was agreed that to help shore up the foreign exchange reserves of the Bank of Ghana, starting September 1st (next month), the Bank of Ghana will purchase a portion of the output of the gold mining companies on a continuous basis at world market prices, but payment will be made in cedis,” Dr. Bawumia announced in a Facebook post sighted by The Anchor.
According to him, “This will represent a significant and sustainable addition to Ghana’s foreign exchange reserves, over time, and strengthen the balance of payments”.
With the implementation of the novel Community Mining Scheme by the Ministry of Lands and Natural Resources, which is currently in full operation across the country, in mining areas, according to players in the mining sector, is expected to provide chunk of the gold to the Central Bank.
The initiative, which is aggressively being rolled out by the sector Minister, Samuel Abu Jinapor together with his Deputy in-charge of mines, MirekuDuker, is making a great impact on the lives of indigenes in the mining communities. The scheme is aimed at formalizing mining in selected communities across the country.
The government through the Lands Ministry, with the help of Minerals Commission, has been making huge investments in the small-scale mining industry to ensure sustainable and responsible mining.
Addressing a gathering to commission some 100 mercury-free gold processing equipment, commonly referred to as “Gold Katcha”, for use by small-scale miners across the country recently, President Akufo-Addo indicated the idea was to eliminate negative practices and to ensure that small-scale mining supports government drive, to optimize the earnings from mining.
He said, “On contrary, it is to ensure that mining is carried on in a responsible manner, as was done by our ancestors and, in line with international best practices and conventions across all levels of operations.
One of the things to do to help eliminate associated negative practice, is to ensure that small-scale mining supports government drive to optimize the earnings from mining to ensure development, progress and prosperity for all Ghanaians”.
The President emphasized the critical roles small-scale mining and mining as a whole, play in Ghana’s economy, saying; “The mining sector makes a very important contribution to the generation of our country’s revenue. According to the Ghana Revenue Authority, in the past seven years, either than in 2014, the mining sector has provided the largest tax receipt.
The small-scale mining’s contribution to the growth of this sector has been equilateral, since it regularization in 1989. Today, small-scale mining accounts for some 40 percent of our gold exports and provides job opportunities and sources of livelihoods and income for many Ghanaians”.
Source: Anchorghana
