Ghana’s mining sector is enhancing local procurement and mineral revenue retention, with $3.1 billion spent locally in 2023. This reflects an increasing commitment to local supply chain strengthening. The growth of mining support service providers is also generating employment and fostering economic development. Strategic partnerships and technological leveraging are vital for sustaining the sector’s growth.
Ghana’s mining sector is poised for advancements in local procurement and mineral revenue retention, according to Dr. Sulemanu Koney, CEO of the Ghana Chamber of Mines. In 2023, members of the Chamber spent $3.1 billion on local goods and services, contributing 53% to the industry’s total mineral revenue of $5.9 billion, indicating a commitment to enhancing the local supply chain.
Data from the Minerals Commission reveals that mining companies invested $2.4 billion in 50 key mining-related items from local vendors, constituting 41% of total mineral revenue for the year. Dr. Koney notes that the ongoing development of new mining projects is expected to escalate these contributions through increased local procurement and revenue retention.
At the commissioning of the FLSmidth Service Centre in Accra, Dr. Koney emphasized that Ghana’s mining sector aims to enhance its developmental impact and position as a hub for mining support services. He highlighted that the sector’s value extends beyond mere extraction, focusing on leveraging technology and local expertise for sustenance and socio-economic benefits.
The growth of local mining support service providers is generating employment opportunities and enhancing value retention within Ghana. This fundamentally supports broader economic development and fosters a resilient mining industry that values local capacity building and sustainability.
Recognizing the significance of support service providers like FLSmidth, Dr. Koney noted that real job creation stems from these partnerships. He indicated that the Chamber and its members prioritize sourcing goods and services from local firms to optimize advantages.
FLSmidth, a leading provider of mining technology, is planning the opening or expansion of seven service centers globally, including Indonesia and Saudi Arabia, which aligns with their CORE’26 mining strategy aimed at service growth. This will enhance their network, promoting higher productivity for mining clients.
Dr. Koney acknowledged the critical role of the FLS Service Centre in supporting local value and content for the mining sector, stating it provides vital equipment servicing and technical support for efficient operations across mining firms. He praised FLSmidth’s initiative in establishing the facility and urged others in the industry to pursue similar strategies for increased efficiency and sustainability.
Christian Fabry, Head-Professional Services at FLSmidth, elaborated that their service centers also function as workshops for equipment repair and improvement, alongside distribution warehousing capabilities.
Ghana’s mining sector is making significant strides in local procurement and mineral revenue retention, reflected by increased spending on local goods and services. The ongoing development of new mining projects is expected to further enhance economic contributions. Collaborations with support services like FLSmidth are pivotal for optimizing job creation and operational efficiencies. The sector prioritizes sustainability and capacity building, which promises a resilient mining industry moving forward.
Original Source: africanminingmarket.com
