New Local Content Law for Mining Firms passed
6/21/2012 2:01:43 PM -
Mining firms in the country are now mandated by law to procure all their inputs that could be sourced locally.
This follows the passage of a new local content law for mining firms as part of regulations under the Minerals and Mining Act of 2006.
The Chief Executive of the Minerals Commission Ben Aryee tells JOY BUSINESS, the Mining firms would be required to submit to the commission for approval, a five-year procurement plan in implementing the law.
'This would have to do with how they intend to promote local content. That is what local content they are using or plan to use and the mechanisms they would put in place to develop local enterprises to support the local content agenda' he noted.
Government is also expected to come up with a list of items that mining firms should source from, which will be reviewed every year. Mining firms are currently sourcing about 40% of their goods and services from the country.
Mr. Aryee also explains the law would be enforced through collaboration between the commission and the Chamber of Mines.
'For starters once the item gets on the list they cease to be duty-free if you choose to import them and additional penalties would be imposed depending on much Ghanaian input is included' he noted.
Meanwhile, President of the Chamber of Mines, Dan Owuredu last month told JOYBUSIENSS government needs to grow the capacities of local firms to give real meaning to the law.
Story by Emmanuel Agyei / George Wiafe - Joy Business