Ghana’s mining sector is experiencing growth in local procurement and mineral revenue retention, with companies spending US$3.1 billion on local goods in 2023. This reflects a commitment to strengthening the local supply chain. Upcoming mining projects are expected to further enhance local economic contributions, supported by collaborations with service providers like FLSmidth.
The mining sector of Ghana is set to enhance local procurement and mineral revenue retention owing to ongoing new projects, according to Dr. Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines. In 2023, member companies spent approximately US$3.1 billion on locally sourced goods, which constituted 53% of the total mineral revenue of US$5.9 billion, demonstrating a commitment to developing the local supply chain.
Dr. Koney highlighted data from the Minerals Commission, which indicates that mining companies purchased US$2.4 billion worth of inputs from local vendors, representing 41% of the total mineral revenue for the year. This trend promises even more economic contributions with the upcoming mining projects fostering increased local procurement and greater revenue retention.
At the recent 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 that the industry’s true value lies in leveraging technology, innovation, and local expertise to boost productivity and sustainability.
The expansion of local mining service providers is generating substantial employment opportunities and enhancing value retention within the country. This shift is contributing to broader economic development and nurturing a more robust mining industry that emphasizes local capacity building and long-term sustainability. Dr. Koney remarked on the significance of mining support providers in job creation, particularly referencing their relationship with companies like FLSmidth.
To maximize this potential, Dr. Koney noted that the Chamber and its member companies prioritize sourcing goods and services from local enterprises. FLSmidth, a leading mining technology supplier, plans to open or expand seven service centres globally, including facilities in Indonesia and Saudi Arabia, which align with its ambitious CORE’26 mining strategy.
Dr. Koney acknowledged the importance of the FLSmidth Service Centre in enhancing in-country value and local content, providing essential servicing and support to improve operational efficiency for mining companies. He emphasized, “The success of Ghana’s mining industry hinges on collaborative partnerships between government, the private sector, and key stakeholders.”
Christian Fabry, Head of Professional Services at FLSmidth, stated that their service centres not only repair and improve customer equipment but also offer warehousing capabilities for distribution. The planned openings and expansions will enhance the company’s service offerings to customers further.
In conclusion, Ghana’s mining sector is well-positioned for growth through improved local procurement and revenue retention, as highlighted by the commitments made by member companies of the Ghana Chamber of Mines. With an ongoing focus on leveraging technology and local resources, the mining industry is fostering significant economic development and sustainability. Collaborative efforts among stakeholders, as emphasized by industry leaders, are pivotal for the sector’s success and promise to enhance local capacity and job creation.
Original Source: africanminingmarket.com
