Ghana’s Mining Sector Set for Growth in Local Procurement and Revenue Retention

The Ghanaian mining sector, led by CEO Dr. Sulemanu Koney, is seeing improvements in local procurement and mineral revenue retention, with 2023 showcasing US$3.1 billion spent on local goods. The setting up of the FLSmidth Service Centre further underscores the commitment to local capacity building and sustainability. Collaborative partnerships are deemed essential for the sector’s growth and success.

The Ghanaian mining sector is expected to enhance local procurement and mineral revenue retention, according to Dr. Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines. In 2023, member companies spent US$3.1 billion on locally sourced goods and services, equating to 53% of the total mineral revenue of US$5.9 billion, indicating a commitment to develop the local supply chain.

Dr. Koney highlighted data from the Minerals Commission that reveals substantial economic impact, noting that expenditures on 50 key items reached US$2.4 billion from local vendors, accounting for 41% of the total mineral revenue in 2023. With new mining projects on the horizon, he anticipates further economic contributions through increased local procurement and revenue retention.

At the commissioning of the FLSmidth Service Centre in Accra, Dr. Koney stated, “Ghana’s mining sector is poised to deepen its developmental footprint and become a major hub for mining support services”. He emphasized the importance of leveraging technology and local expertise for productivity and sustainability, leading to broader economic development.

The expansion of local mining support services is creating new employment opportunities while enhancing value retention in the country. Dr. Koney acknowledged that the mining sector’s significant job creation arises from its collaboration with support service providers, such as FLSmidth, encouraging a focus on local purchases.

FLSmidth, a key player in mining technology and services, aims to open or expand seven service centres globally this year, including in Ghana, Indonesia, and Saudi Arabia. These facilities align with FLSmidth’s CORE’26 mining strategy, enhancing service capacity and operational efficiency for clients.

Dr. Koney noted the essential role of the FLS Service Centre in promoting local content and value in the mining sector, providing essential technical support and service to minimize operational downtime. He stated, “The success of Ghana’s mining industry hinges on collaborative partnerships between government, the private sector and key stakeholders,” commending FLSmidth’s establishment of the new facility.

Additionally, Christian Fabry, Head of Professional Services at FLSmidth, remarked on the significance of service centres as both workshops for equipment improvement and warehouses for distribution, enhancing overall service capabilities for customers.

In summary, Ghana’s mining sector is on the verge of significant advancements in local procurement and mineral revenue retention, driven by new projects and robust local spending. The establishment of the FLSmidth Service Centre symbolizes a commitment to enhancing local capacities and fostering partnerships for sustainable growth. The emphasis on collaboration among stakeholders is vital for maximizing the sector’s potential and ensuring long-term economic benefits for Ghana.

Original Source: africanminingmarket.com