Ghana’s Mining Sector Boosts Local Procurement and Revenue Retention
Ghana’s mining sector is set to improve local procurement and mineral revenue retention due to ongoing projects, with $3.1 billion spent on local goods in 2023. CEO Dr. Sulemanu Koney forecasts further economic contributions and highlights the importance of leveraging local expertise. FLSmidth’s new service centre supports this initiative with world-class services, promoting efficiency and sustainability.
The mining sector in Ghana is expected to enhance local procurement and mineral revenue retention, as newly developed mining projects emerge, according to Dr. Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines. In 2023, member companies procured $3.1 billion worth of locally sourced goods and services, representing 53% of the total mineral revenue, which totaled $5.9 billion. This uptick reflects an increasing focus on bolstering the local supply chain.
Dr. Koney further noted that the Minerals Commission’s analysis of expenditures on 50 essential mining-related items indicated that mining firms directed $2.4 billion toward local vendors, which accounted for 41% of the mineral revenues in 2023. Given these positive developments, he projected that the industry would contribute even more to the economy through expanded local procurement and enhanced mineral revenue retention as new projects progress.
During 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, innovation, and local expertise to yield productivity and sustainability benefits. As local mining service providers grow, the sector is generating employment and retaining more value within the country.
This strategic focus on local capacity building and long-term sustainability addresses broader economic development needs. Dr. Koney noted, “the mining sector’s greatest impact on job creation is through its relationship with mining support service providers, such as FLSmidth.” The Chamber and its members are prioritizing the procurement of goods and services from domestic companies to maximize this potential.
FLSmidth, a premier mining technology and services provider, plans to inaugurate or enlarge seven service facilities globally this year as a component of its CORE’26 mining strategy. Not only in Ghana, but also in countries such as Indonesia, Saudi Arabia, Brazil, Kazakhstan, and Mongolia, these facilities aim to bolster service growth and enhance productivity for their mining clientele.
Dr. Koney acknowledged that the FLS Service Centre significantly advances local content and value within the mining sector by offering top-notch equipment servicing, spare parts, and technical support to reduce downtime and enhance operational efficiency. He stated, “The success of Ghana’s mining industry hinges on collaborative partnerships between government, the private sector and key stakeholders.”
He urged industry participants to pursue similar initiatives focusing on efficiency and sustainable growth. Christian Fabry, Head of Professional Services at FLSmidth, asserted that the service centres primarily function as workshops for equipment repair and improvement while also providing warehousing features for efficient distribution of services.
In summary, Ghana’s mining sector is on the verge of significant enhancements in local procurement and mineral revenue retention, propelled by emerging projects and increased local expenditure. Dr. Sulemanu Koney, alongside major industry players like FLSmidth, emphasizes the importance of collaboration and local capacity building. This strategic focus aims to foster economic development, job creation, and sustainability within the sector.
Original Source: africanminingmarket.com
