Assaying is an essential component in determining a purity level of gold bar and hence how it would be help value gold for taxes purposes. Assaying is conducted in a laboratory where experts choose the appropriate methods to determine the concentration of valuable minerals in a rock sample. Most often, the rock sample is a core, obtained through drilling; however, in some cases hand grab samples may also be used. GIZ in cooperation with the Swiss State Secretariat for Economic Affairs (SECO) collaborated with the Institute of Financial and Economic Journalists (IFEJ) held a series of capacity building training initiatives in oil, gas and mining extractive industry in Ghana at Koforidua and Elmina.
Mr. Allan Lassey Senior Advisor, Extractive Resource Governance Good Financial Governance Programme (GFG) ,Said the capacity building will offer participants necessary skills and knowledge to understand the principles, accountability, legal framework and transparency in oil, gas and mining extractive industry in Ghana.
Mr. Lloyds Evans, the President of Institute of Financial and Economic Journalist-IFEJ and also the formal Editor of Graphic Business urge and admonish the journalists to take the training programme serious and to develop their capacity and then educate the nation accordingly.
Assay results are often mapped, and used to pin-point future drilling programs. The assay values at particular locations can help exploration companies learn about the distribution of gold and the potential of the deposit. When the gold values are extremely high and the others are very different, the high values must be studied carefully because these assays may not reflect the gold grade around the sample point location. Also, assay values are generally reported to the public, and strong assay values can result on a share-price jump. Local companies like ASAP VASA gold refinery in Mataheko, Accra can be a home grown and supported to provide these services at a large scale which would invariably provide employment to Ghanaians and adding value to the natural resources before exporting.
Ghana Chamber of Mines:
Ahmed Nantogmah, Director Public Affairs and Environment, by their nature minerals are non-renewable and exhaustible in the production process. Yet their impact on the society, environment and economy of the host nation defies time. Consequently, mineral resources and the associated revenue inflow must be used in a sustainable fashion. The industry accounts for about 40% of the country?s gross export revenue reinforcing its position as the country?s leading export earner and a major contributor to the country?s balance of payment.
Mining Laws:
Minerals and Mining (Support Services) Regulations, 2012 (L.I. 2174) ? It has 9 Regulations and a schedule. Relates to businesses that provide mining support services (like the equipment owners). It classifies the support service to companies according to the services that they offer and the benefits they can enjoy. Minerals Commission Act, 1993 (Act 450) ? This law sets up the Minerals Commission which is the state agency responsible for processing mineral related licenses and for monitoring compliance with the law.
The Environment:
Environmental Protection Agency Act, 1994 (Act 490) and its Regulations ? This law provides for the establishment of the EPA. Section 18 of Act 703 (1) before undertaking an activity or operation under mineral rights the holder of the mineral rights shall obtain the necessary approvals from the Forestry Commission and Environmental Protection Agency for the protection of natural resources, public health and the environment.?
Ghana Extractive Industry Transparency Initiative (GHEITI):
On his Part K.Boa-Amponsem of EITI Said the Improve Development Outcomes from payments made to Governments by the Extractive Industries Reduce Potential for Corruption and large scale Embezzlement of these payments. EITI helps Collect Analyze and Aggregate payments made by Mining companies to Government of Ghana. Reconcile Mining companies? submissions of mining benefits payments to those received by Government. Check Payments (Disbursements) in and out of the MDF and their utilization. Lessons learnt from the Reconciliation Aggregation are to enhance Transparency in Payments, Receipts, disbursements and utilization. The payments and receipts considered under the reports are: Mineral right licenses (reconnaissance, Prospecting, mining lease), Ground rent, Property rates, Mineral royalties, Corporate taxes, Dividends.
EITI New Standard:
Dr. Steve Manteaw of ISODEC a member of GHEITI, Briefing the IFEJ on the new EITI standard, requires EITI reports to include contextual information about the extractive industries. This information should include a summary description of the legal framework and fiscal regime, the sector?s contribution to the economy, production data; state participation in the extractive industries; revenue allocations and the sustainability of revenues, license registers and license allocations; and any applicable provisions related to beneficial ownership and contracts. The new standard was adopted in Sydney 2013, it followed years of agitation by CSOs, discussions among stakeholders, and even though it did not take on board all the demands of CSOs, it is much more rigorous than the earlier requirements. The new standard provides much more clarity on some of the old requirements. For instance on regular reporting it elaborates that ?EITI Reports must cover data not older than the second to last complete accounting period, e.g. an EITI Report published in calendar financial year 2014 must be based on data not later than 2012 calendar financial year?
By: Joshua Sowu
Member of Institute of Financial and Economic Journalist-(IFEJ),
[email protected]
