The government has directed all large-scale gold mining firms in the country to sell 20% of their refined gold to the Bank of Ghana (BoG) before exporting, effective January 2023.
The move will ensure that the government secures enough gold to purchase petroleum products under its gold for oil programme expected to commence next year.
A letter addressed to the Minerals Commission and Precious Minerals Marketing Company (PMMC) dated Wednesday (23 November), also directed community mining schemes and all incensed small gold miners to sell 20% of their gold to PMMC effective January 2023.
“Effective 1 January 2023, all large-scale mining companies (as agreed with the Bank of Ghana) shall sell 20% of all refined gold at their refineries to the Bank of Ghana (in Ghana cedis) before the export of the gold. The Bank of Ghana and the Precious Minerals Marketing Company (PMMC) will coordinate with the large-scale mining companies to ensure compliance with this directive,” the letter said.
“Effective 1 January 2023, all Community Mining Schemes (CMS) shall sell their gold outputs to Government through PMMC. All mining licences for CMS shall include a clause mandating licensees to sell their gold output to Government.
“Effective 1st January 2023, all Licensed Small-Scale Gold Miners shall sell their gold to Government through PMMC. All small-scale gold mining licences shall include a clause mandating licensee to sell their gold to Government,” the letter added.
Below is a copy of the letter:
The objective
The policy when implemented will fundamentally change Ghana’s balance of payments and significantly reduce the persistent depreciation of the cedi.
Vice-President Mahamudu Bawumia said the policy, which is still at the negotiation stage will come into force by the second quarter of 2023.
“The demand for foreign exchange by oil importers in the face of dwindling foreign exchange reserves results in the depreciation of the cedi and increases in the cost of living with higher prices for fuel, transportation, utilities, etc.” he said.
He added: “To address this challenge, Government is negotiating a new policy regime where our gold (rather than our US dollar reserves) will be used to buy oil products. The barter of sustainably mined gold for oil is one of the most important economic policy changes in Ghana since independence.”
Fred Dzakpata
Asaase Radio 99.5 broadcasts on radio via 99.5 in Accra, 98.5 in Kumasi, 99.7 in Tamale, 100.3 in Cape Coast and on our affiliates Bawku FM 101.5 in Bawku, Beats FM 99.9 in Bimbilla, Somua FM 89.9 in Gushegu, Stone City 90.7 in Ho, Mining City 89.5 in Tarkwa and Wale FM 106.9 in Walewale
Tune in or log on to broadcasts online: www.asaaseradio.com, Sound Garden and TuneIn
Follow us on Twitter: @asaaseradio995
Live streaming: facebook.com/asaaseradio99.5. Also on YouTube: Asaase Radio Official.
Join the conversation. Call: 020 000 9951 or 059 415 7777. Or WhatsApp: 020 000 0995.
#AsaaseRadio
