The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has called for a review of Value Added Tax (VAT) on exploration and enhanced security for mining operations to maximize Ghana’s benefits from its mining sector.

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Speaking at the 10th Ghana Mining Industry Awards held at the Kempinski Hotel Gold Coast, Accra, Jinapor outlined three key recommendations aimed at strengthening the relationship between the government and the Ghana Chamber of Mines. He emphasized that these measures would position Ghana as a leading mining hub while fostering sustainable development in the sector.

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Jinapor highlighted the productive collaboration between his ministry and the Ghana Chamber of Mines, attributing Ghana’s rise to becoming Africa’s leading gold producer to this partnership.

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He stated, “We have worked together, closely and in good faith, not only to overtake South Africa as the leading producer of gold on the continent, but we have consistently increased production, reaching some four million ounces (4,000,000 oz) last year.” He further disclosed that gold export receipts had significantly bolstered the national economy, with last year’s receipts amounting to $4.67 billion as of August 2023.

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This year, gold receipts for the first half alone reached $5 billion, with a projection to exceed $10 billion by the year’s end.To sustain these achievements, the minister proposed three key actions. First, he urged the next government to prioritize the issue of VAT on exploration, describing exploration as the lifeblood of the mining industry and calling for incentives to encourage it.

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He revealed that while progress had been made on this issue, the current parliamentary situation had hindered its conclusion. "I led the Chamber to make a presentation to the Economic Management Team, and we were seriously working to review this VAT. Unfortunately, with the current situation in Parliament, it is unlikely that we can conclude this matter before the end of the year.

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I, therefore, strongly recommend that the next Minister takes this matter up, and it is my hope that the Chamber will collaborate with the next Minister to deal with this matter," he said.He stressed the importance of enhancing the security of mines, noting that the growth of the industry depends on the peace of mind of its players.

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He highlighted efforts to train special security forces and urged the next administration to continue implementing agreed security measures. The Minister then called for increased attention to the development of mining communities, arguing that ensuring the happiness of local communities is closely tied to the security and sustainability of mining operations.

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Mr Jinapor also commended mining companies and personalities for their contributions to the sector, assuring continued government support to create an environment conducive to successful investments. He pointed out the significant opportunities for value addition to Ghana’s mineral resources, emphasizing that such initiatives would drive wealth creation.

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On his part, the Chief Executive Officer of the Ghana Chamber of Mines, Sulemanu Koney, praised Jinapor’s visionary and amiable leadership, crediting him with the impressive results seen in the large-scale mining sector. He remarked that the minister’s extraordinary relationship with stakeholders has already yielded fruitful outcomes.

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