Invest in prospecting, exploration to maximise mineral gains …Dr Ashigbey urges govt
THE Chief Executive Officer of the Ghana Chamber of Mines (GCM), Dr Kenneth Ashigbey, has proposed that the government should initiate investments in prospecting and exploration to obtain a larger portion of the nation’s mineral resources.
He said if the government desired larger equity in the mineral extraction industry, it must be involved from the beginning of the value chain, starting with prospecting and exploration.
Dr Ashigbey made the suggestion at a news conference in Accra last Thursday to highlight the contribution of GCM member companies to government revenue in 2024.
His response followed a question on how Ghana can increase the benefits it derives from its mineral resources.
“If government wants more equity, it must invest early. You can’t come in after someone has spent 10 years exploring and expect a large share without putting money in,” he stated.
He said it was encouraging that in the recent lithium agreement, the government had been granted an equity stake.
“The equity is available, but we must invest to take it up. Parliament is expected to ratify the lease when it resumes, and if that happens, government should ensure it secures the equity,” he said.
Dr Ashigbey disclosed that most exploratory licences were currently held by Ghanaians, and called for support for those licence holders to move into actual exploration and eventually production.
“That’s where the heavy lifting is. Someone can invest $60 million and still come up with nothing, so we need to support them through this risky but vital phase,” he explained.
The GCM CEO said the country must sacrifice if it wanted more from its natural resources.
“We must be willing to reinvest a portion of today’s mineral revenues into prospecting and exploration for the sake of future ownership and control,” he stated.
On revenue management, Dr Ashigbey called for the establishment of a Minerals Revenue Management Act, similar to the existing Petroleum Revenue Management Act.
That, he said, would ensure that portions of mineral income were directed into clearly defined development projects, rather than on recurrent expenditure.
BY KINGSLEY ASARE
