The Chief Executive Officer of the Minerals Commission, Martin Kwaku Ayisi, has expressed his excitement about the recent rise in gold prices.
Figures from the Commission’s website put current global gold price at $2,165.49, making the commodity picking before the close of first quarter.
Speaking in an interview with Dr. Randy Abbey on Metro TV’s Good Morning Ghana, Mr. Ayisi highlighted some key reasons for his enthusiasm, emphasizing the positive impact on Ghana’s economy.
He noted that higher gold prices would lead to increased royalty payments from companies involved in the gold trade, thereby boosting government revenue. Additionally, he pointed out that the uptick in prices would make previously marginal mines profitable, and stimulating economic activity in the sector.
“If your major foreign earner is doing well in the international market, you need to be happy. Four reasons accounting for my excitement. Companies dealing in the gold commodity will pay more royalties. The companies pay more corporate taxes which means government get more money. What that means for minerals commission and the rest of the economy is projects that bare high cost are now profitable and marginal mines or those have low grades, can now mine and also become profitable.”
Furthermore, Mr. Ayisi explained that the surge in gold prices would enable companies to allocate more funds towards exploration efforts. This, he argued, would extend the lifespan of existing mines and create employment opportunities for geologists.
He underscored the importance of exploration in sustaining the industry’s growth and competitiveness.
Despite Ghana lagging behind other countries like Mali and Ivory Coast in exploration spending, Mr. Ayisi remained optimistic about Ghana’s standing as one of the top five gold-producing nations.
When asked about the factors contributing to high exploration costs in Ghana, Mr. Ayisi cited VAT and other taxes as major obstacles. However, he expressed confidence that the government would address these challenges to further support the industry’s growth.
“So, it is good news for Ghana that the price of the commodity is surging high in the international market. Randy, half of the world’s exploration budget goes to gold but Ghana falls behind countries such as Mali, Ivory Coast and Democratic Republic of Congo but we are in the top 5.”
“High cost of exploration is the reason for prospective companies decide to spend more in countries where exploration spendings are less. VAT and other taxes are the major contributors but I think government is going to work on that,” he suggested.
By: Bright Yao Dzakah | Metrotvonline.com | Ghana
