The Ghana Chamber of Mines is calling for targeted energy interventions to help make local gold refining commercially viable as Ghana moves to retain more value from its gold resou
The report indicates that the Ghana Chamber of Mines is calling for targeted tax and energy interventions to make local gold refining commercially viable as Ghana steps up efforts to retain more value from its gold resources.
It further notes that chief Executive Officer of the Chamber, Dr Ken Ashigbey, stated the cost of power, taxes and other operational expenses could make local refining more expensive, requiring government and industry to work together to reduce the burden.
Speaking on JoyNews’ PM Express on Wednesday, Dr Ashigbey stated local value addition came with additional costs, but all stakeholders had a role to play in making the policy successful.
“But before I even get to the time scale, in terms of the issue about the cost, you know, and again, we should all realise the fact that you know, when you want to do this local content, it comes with some cost,” he said.
He stated government must also review taxes and levies affecting the refining sector.
“But again, all of us need to chip in. The more we do in this country, and the more we all work together, government needs to put its skin in the game,” he added.
Dr Ashigbey stated discussions were already underway on the taxes and levies associated with the refining drive.
“The issue, of course, is that the taxes and the levies that are on government would have to look at that, and I know that conversation is going on,” he said.
He also urged private refinery operators to invest in technology that could help lower their operating costs.
“The issues of these private sector people who own the refineries in terms of the technology that they need to put in to be able to ensure that they reduce their cost, it’s something that we need to do,” he said.
Dr Ashigbey identified energy costs as another major challenge and stated policy measures could be considered to give refineries access to cheaper sources of electricity, particularly hydroelectric power.
“The issues of even power, you know, currently the cost of power, so there might be some policy decisions that would have to be taken,” he said.
He specifically suggested that policymakers consider allocating more relatively cheaper hydroelectric power to refineries because of their strategic importance.
“Because of the criticality of refineries, is it possible that in the energy mix, we will give them, you know, a lot more of the hydro that is cheaper?” he asked.
