1. PRESENTATION AT THE 15TH INDIA INTERNATIONAL GOLD CONVENTION HELD AT LE MERIDIEN, KOCHI, INDIA ON 3RD AUGUST, 2018
REGULATORY CHANGES, REVENUE REPORTING AND DEVELOPMENTS IN GHANAIAN GOLD MINING SECTOR
(JOSEPH YAW ABOAGYE)
DIRECTOR, POLICY PLANNING MONITORING & EVALUATION
MINERALS COMMISSION, GHANA

2. TABLE OF CONTENTS
1.0 Introduction 2.0 Policy & Legal Framework Governing Mining 3.0 Categories of Gold Exporters 4.0 Current Gold Export Processes 5.0 Challenges and Measures 6.0 Conclusion

3. 1.0 INTRODUCTION
For the past 25 years Ghana has attracted significant mining sector investment amounting to US$19 billion.
Currently Ghana has 14 large-scale operating mines; i.e. 12 gold mines, 1 bauxite mine and 1 manganese mine.
In 2017, Ghana produced 4,231,376 ounces of gold. This resulted in export revenues of some US$5.7 billion. Significantly small scale miners contributed 34% (1.42 million ounces) of total gold production in 2017.
Total Foreign Direct Investment (FDI) into the minerals and mining sector in 2017 amounted to some US$1 billion.
In 2017, the mining sector contributed 16.30% to government revenue in the form of domestic tax as reported by the Ghana Revenue Authority.
The sector also employed 23,772 people in large-scale mining sub-sector whilst an estimated 1,000,000 people are generally engaged in artisanal and small-scale gold, diamonds and industrial minerals sub sector.

5. 2.0 POLICY & LEGAL FRAMEWORK
The various Laws and Policy governing mining operations in Ghana are as follows:
Constitution of the Republic of Ghana – Art. 257(6); Art. 269
Act 450 – Minerals Commission’s Act, 1993
Act 703 – Minerals and Mining Act, 2006
Act Minerals and Mining (Amended) Act, 2016
Minerals and Mining Policy of Ghana, 2014
Other Legislations
L.I Minerals and Mining (General) Regulations, 2012
L.I Minerals and Mining (Support Services) Regulations, 2012
L.I Minerals and Mining (Compensation) Regulations, 2012
L.I Minerals and Mining (Licensing) Regulations, 2012
L.I Minerals and Mining (Explosives) Regulations, 2012
L.I Minerals and Mining (Health, Safety and Tech.) Reg. 2012
THE MINERALS AND MINING ACT, THE SUBSIDIARY LEGISLATIONS AND THE POLICIES ARE ADMINISTERED BY THE COMMISSION

6. 3.0 CATEGORIES OF GOLD EXPORTERS
Basically, there are two categories of gold exporters in Ghana
All are licensed by Government of Ghana (represented by the Hon. Minister, Lands and Natural Resources) on recommendations of the Minerals Commission.
CAT. 1: Holders of Mining Lease  Reg. 3, L.I. 2173
Export gold produced from their mining operations
Currently, 12 mining lease holders have this permit
CAT. 2: Persons other than Mining Lease Holders  Reg. 4, L.I. 2173
Buy gold from small-scale miners and export
Process tailings from small-scale mining operations; recover gold and export
Process spent carbon and mill liners from large-scale mining operations, recover gold and export
Currently, 35 companies have this licence

7. 4.0 CURRENT GOLD EXPORT PROCESSES
Prior to export of gold from Ghana, a gold exporter goes through the following protocols:
Completion of Bank of Ghana’s Letter of Commitment (LOC)
Exporter will download the LOC from the GCNet Portal
Exporter provides information on quantity and value of gold to be exported, destination of the gold, details of the importer, method of payment and the name and particulars of the bank which receives the export proceeds.
Completed LOC is endorsed by GRA Customs Division Office at Kotoka International Airport (KIA).
Assaying of Gold by Government Reference Laboratory
PMMC was appointed Government Assayer on 27th October 2016 in line with Reg. 3(3) of LI 2173
Appointment effectively ended the gold buying and exporting activities of PMMC. Also ended PMMCs ability to appoint Gold Buying Agents
Gold Exporter sends the gold to be exported to the Reference Laboratory operated by PMMC for confirmation of quantity and value
Examination and Sealing of Gold Bullion
Gold Exporter completes Customs Declaration Form
Gold is examined and sealed with Customs’ Seal and Reference Laboratory’s Seals
Gold is released for export after completion of the assay, examination and documentation which includes Assay Report, Airway Bill (AWB), CEPS Declaration Form, Proforma Invoice and a Parking List.

8. 5.0 CHALLENGES AND MEASURES
Smuggling of gold
Appointment of Government Reference Laboratory to assay all gold exports
MCAS/Customs Verification Portal
Letter of Commitment (LOC) Introduction
Courier Services Cautioning
Under-declaration of gold to be exported
Appointment of Government Reference Lab.
Non-repatriation of proceeds from gold exports
Introduction of LOC to ensure that all export proceeds are returned to the nominated bank.
Loss of revenue to the economy
(a) Introduction of LOC
(b) Support of Giz/Revenue Development Foundation of Norway in establishing:
MCAS system to improve mineral titles administration and also track revenues
Customs Verification Portal to strengthen the control and mechanism of exporting gold; reduces revenue leakage caused by illicit trade of gold and contributes to sustainable and effective devp’t.

9. 6.0 CONCLUSIONS
Responsible Mining is not just about eliminating and minimizing negative impacts, it is about maximizing the positive impacts, and maximizing the value to society throughout the minerals cycle
For this reason, Government of Ghana has put in place a number of interventions to eliminate illicit gold trade i.e. smuggling, undervaluation, non-repatriation of proceeds, duping of unsuspected investors.
Ghana Government has put in place measures that will generate revenue (i.e. SSM Sustainability Fee) to manage and sustain the small-scale mining sector which provides the feed for local and international gold refineries
Ghana Government will continue to work at improving the gold mining sector by working with all other stakeholders including development partners to achieve sustainable development.