The Ghana Chamber of Mines is urging targeted energy interventions to bolster the commercially viable status of local gold refining, a strategic move aimed at maximizing value extraction from Ghana’s abundant gold resources. Chief Executive Officer Dr. Ken Ashigbey stated that the cost of power, taxes, and operational expenses currently pose a significant barrier to profitability for local refining operations. He emphasized the crucial need for government and industry collaboration to mitigate these costs, asserting that a collaborative approach is essential for achieving this goal.
Speaking on Joy News’ PM Express on Wednesday, Dr. Ashigbey highlighted the inherent cost of value addition – a reality that stakeholders must acknowledge. He underscored the need for a comprehensive review of government tax and levy structures impacting the sector, stating that ‘all stakeholders must contribute to making the policy work.’ He also proposed private refinery operators to invest in technology designed to reduce their operational expenses. ‘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 pointed to plans under the 24-hour economy to develop large solar plants that could significantly lower energy costs, offering a potential pathway to further reduce costs. ‘The conversations, the 24-hour economy is thinking of putting together some solar, you know, large solar plants, you know, and which will reduce the cost of energy to around 3 to 4 cents per kilowatt-hour.’
Dr. Ashigbey expressed a belief that policy decisions could be strategically employed to provide refineries with access to cheaper power, particularly hydroelectricity. He proposed a policy that would consider providing refineries with more of the cheaper hydro that is available.
Furthermore, he stressed the importance of a collaborative effort between government and industry. He stated that ‘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 also emphasized the need for the government to actively engage with industry to reduce the overall cost of operation.
He posed a specific question to policymakers: ‘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 also reiterated the importance of the mining sector absorbing some additional costs under existing arrangements. ‘So there’s some pain again, like the large scale, for example, the GANRAP, we are starting with a 0.55 when we are doing a weighted average of 0.098.’
He concluded by emphasizing the importance of collaborative efforts, stating that ‘so I think that this issue of beneficiation is a good thing for us, and, you know, all of us need to chip in.’
Dr. Ashigbey stated that the current situation is a result of the mining sector absorbing some additional costs, and that the policy is a necessary step towards increasing local value retention in the gold industry. He believes that the policy is essential, but must be implemented collaboratively.
He said the mining sector is already absorbing some additional costs under existing arrangements.
Source: MyJoyOnline
