Ghana’s mining sector is set for improvements in local procurement and mineral revenue retention, with member companies spending $3.1 billion locally in 2023. This trend is driven by new mining projects and a commitment to strengthening local supply chains, as emphasized by Dr. Sulemanu Koney, CEO of the Ghana Chamber of Mines.
The mining sector in Ghana is poised for significant enhancements in local procurement and mineral revenue retention as highlighted by Dr. Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines. In 2023, member companies collectively spent $3.1 billion on local goods and services, representing 53% of the industry’s total mineral revenue of $5.9 billion. This demonstrates a robust commitment to reinforcing the local supply chain.
Dr. Koney referenced data from the Minerals Commission, revealing that expenditures on 50 key mining-related items reached $2.4 billion from local vendors, accounting for 41% of the total mineral revenue in 2023. With several new mining projects in the pipeline, the industry projects enhanced economic contributions via increased local procurement and improved mineral revenue retention.
During the commissioning of the FLSmidth Service Centre in Accra, Dr. Koney remarked that “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, innovation, and local expertise to enhance productivity, sustainability, and socio-economic benefits.
The growth of local mining support service providers not only generates more employment opportunities but also strengthens value retention within the country. This transition is facilitating broader economic development, fostering a resilient mining industry focused on local capacity building and sustainability.
Dr. Koney acknowledged that “the mining sector’s greatest impact on job creation is through its relationship with mining support service providers, such as FLSmidth.” The Chamber is committed to prioritizing purchases of goods and services from local companies to maximize this potential.
FLSmidth, a prominent mining technology and service supplier, plans to open or expand service centres globally, including facilities in Indonesia and Saudi Arabia, alongside expansions in Brazil, Kazakhstan, and Mongolia. These centers support FLSmidth’s CORE’26 mining strategy and enhance customer productivity.
Dr. Koney underscored the FLS Service Centre’s vital role in advancing local content within the mining sector, providing top-tier equipment servicing and operational support to minimize downtime for mining enterprises.
He commended FLSmidth for its strategic foresight and commitment to Ghana’s industrial and economic advancement, urging other industry stakeholders to engage in similar initiatives that foster efficiency and long-term growth.
The Ghanaian mining sector is experiencing a promising surge in local procurement and mineral revenue retention, underscored by substantial investments in local goods and services. The collaborative efforts between key industry players, such as the Ghana Chamber of Mines and FLSmidth, reflect a commitment to enhancing the economic landscape. With the expansion of support services and the prioritization of local spending, the potential for sustainable growth and increased employment opportunities in the sector is significant.
Original Source: africanminingmarket.com
