The Minister for Lands and Natural Resources, Samuel A. Jinapor, has urged the incoming government to prioritise the removal of the Value Added Tax (VAT) on mining exploration to support the continued growth of Ghana’s mining sector.
Addressing attendees at the 10th Ghana Mining Industry Awards in Accra on Friday, 22 November, Jinapor emphasised the critical role of exploration in sustaining the industry, describing it as the “lifeblood” of the sector. He stressed the need for urgent incentives to attract further investment.
“The issue of VAT on exploration is a pressing matter for all of us, including Vice President Dr. Mahamudu Bawumia,” Jinapor stated. “Exploration drives the mining industry, and it is imperative that we incentivise it. Unfortunately, we were unable to conclude the review of this tax during my tenure, but I strongly recommend that the next government makes this a priority.”
During his tenure, the Ministry held discussions with stakeholders, including the Ghana Chamber of Mines, to address the tax burden on the sector. However, these talks were not concluded due to challenges in Parliament.
Jinapor also underscored the importance of ensuring security for mining operations and called on industry players to invest in the development of mining communities to foster sustainable growth and stability.
Speaking to Asaase News on the sidelines of the awards ceremony, Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines, commended the Minister for his collaborative leadership. He highlighted the Chamber’s achievements during Jinapor’s tenure, including the expansion of local procurement policies, which have retained approximately US$3 billion annually within the Ghanaian economy.
Koney also outlined the Chamber’s contribution to increasing gold production, projecting that Ghana will surpass four million ounces of gold in 2024, reinforcing its position as Africa’s top gold producer. “The partnership between the Ministry and the Chamber has been essential to these successes. We remain committed to promoting sustainable mining practices and boosting local content,” Koney said.
The awards ceremony, themed “A Decade of Rewarding Excellence in the Mining Sector,” recognised individuals and companies for their contributions to innovation, safety, and sustainability in the mining industry.
Minister Jinapor reiterated the government’s commitment to supporting the mining sector, stressing the importance of integrating mining with broader economic development. “Our objective should be to maximise the sector’s potential by promoting local content, value addition, and linkages with other sectors of the economy,” he said.
With ongoing projects such as the construction of Ghana’s first lithium mine and the commissioning of a US$450 million manganese refinery, Jinapor expressed optimism about the sector’s future. However, he reiterated that the removal of VAT on exploration would be vital to maintaining the momentum.
The Ghana Mining Industry Awards, organised by the Ghana Chamber of Mines, has become a landmark event, recognising excellence and innovation in the mining sector over the past decade.
