Ghana’s mining sector is poised for growth in local procurement and mineral revenue retention, with 2023 spending reaching $3.1 billion. New projects are anticipated to enhance the sector’s economic contributions. Dr. Sulemanu Koney highlighted the importance of local expertise and collaboration in achieving these goals during the commissioning of the FLSmidth Service Centre in Accra.
The mining sector in Ghana is anticipated to witness significant advancements in local procurement and the retention of mineral revenue, as stated by Dr. Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines. In 2023, member companies of the Chamber allocated $3.1 billion to local goods and services, constituting 53% of the total mineral revenue of $5.9 billion, demonstrating their commitment to enhance the local supply chain.
Dr. Koney further emphasized the local economic impact of the mining sector, citing data from the Minerals Commission. This data illustrates that mining companies have invested $2.4 billion in local vendors, which included various manufacturers and retailers, comprising 41% of the mineral revenue for the year. He expressed optimism regarding the economic contributions expected from a new pipeline of mining projects through increased procurement and revenue retention.
During the commissioning of the FLSmidth Service Centre in Accra, Dr. Koney remarked, “Ghana’s mining sector is poised to deepen its developmental footprint and become a major hub for mining support services.” He highlighted that the true value of the industry outweighs extraction, emphasizing the importance of leveraging technology, innovation, and local expertise for productivity, sustainability, and socio-economic benefits.
As the landscape of local mining support services expands, the sector is not only generating additional employment opportunities but also fostering value retention within Ghana. This enhancement is leading to a more sustainable mining industry that places a focus on local capacity building and broader economic development.
Dr. Koney noted that the mining sector’s influence on employment creation is substantially through its connections with mining support service providers. In this context, he accentuated the Chamber’s commitment to prioritizing purchases from local companies. FLSmidth, a prominent supplier of mining technology and services, plans to inaugurate or extend seven service centres worldwide, including in Ghana, supporting a global network to boost clients’ productivity.
Additionally, Dr. Koney acknowledged the pivotal role of the FLS Service Centre in enriching local content and advancing in-country value for the mining sector. The Centre provides cutting-edge equipment servicing and technical support, enabling mining firms to enhance operational efficiency. He commended the collaborative efforts between governmental bodies, the private sector, and stakeholders for fostering the industry’s success.
Christian Fabry, Head of Professional Services at FLSmidth, added clarity to the operations of their service centres, stating, “Our service centres serve primarily as workshops for improving or repairing customer equipment and can also have warehousing capabilities for distribution.” He highlighted that through the openings and expansions, they aim to bolster their service capabilities and enhance offerings to their customers.
In conclusion, Ghana’s mining sector stands at the brink of significant advancements in local procurement and mineral revenue retention, driven by strategic initiatives and collaborations. The increasing local expenditures by mining firms signify a commitment to economic development and sustainability. Furthermore, the establishment of service centres reflects a broader vision for the industry, highlighting the importance of partnerships and reinforcing the advantages of local support services.
Original Source: africanminingmarket.com
