The President of GCM (2nd left) and other members present
President of the Ghana Chambers of Mines, Joshua Mortoti, has stressed the need for the government to provide adequate security for the mining industries in the country.
Speaking at the 95th Anniversary and closing ceremony of the Ghana Mining and Energy Summit held in Accra on the theme, “Harnessing Mining and Energy potential for sustainable development,” Mr Mortoti said, “Security at the mines has become a major problem in the mining industry. And these attackers have become more confident and emboldened by the lack of actions and apparently slowness in the pace of prosecution at the law courts.”
“As a country seeking to become the hub of mining in Africa, it is imperative that we take the issue of security more seriously to reaffirm our commitment to sustainable development,” he stated.
Mr. Mortoti also called on the government to exempt exploration companies from paying VAT on big ticket cost items such as drilling and laboratory services.
“In Ghana, VAT is a payable on exploration expenditure, and it cannot be recovered by the exploration companies unless they make a commercial find and commence production. This implies that where exploration is not successful, VAT would not be recoverable,” he explained.
He therefore elaborated that relieving the usually illiquid exploration companies from paying VAT would not only improve their cash flow situation and reduce their operation costs but would also enhance the country’s image as a competitive destination for exploration investment.
The Senior Consultant of the Ghana Employers Association, Joseph K. Amuah, said there is a need for mining industries to adopt renewable or clean and innovation technologies in their processes.
“It is important to note that energy efficiency measures will not only reduce Ghana’s greenhouse gas emission levels but will improve the competitiveness of the industry, lower operation costs and enhance our overall energy resilience, “he stated.
By Nafisatu Abdul Razak