11-13th Aug-2017 Goa, India.
13-14 Jan 2017, Accra, Ghana.
Foreign investors cautioned against gold scammers
Sat Jan 14 2017
Foreign investors in the gold industry have been advised to be cautious of scammers in the country who pose as miners or exporters to defraud them.
The Chairman of the Association of Gold Exporters of Ghana, Mr Kwabena Asante Asare, gave the advice during the opening of a two day international forum for stakeholders in the gold industry in Accra yesterday.
“There are a lot of scammers in the system,” he said, adding that the miscreants usually offered outrageous and unrealistic discounts to unsuspecting gold buyers.
He urged foreign investors not to engage in gold transactions in hotels and other unauthorised places but rather deal with licensed miners, exporters or a member of the gold exporters association. “When in doubt about any gold deal, you must consult the Minerals Commission of Ghana,” he told the investors.
Between 2013 and 2016, Mr Asare said the country, produced and exported more than eight million ounces of gold, with small-scale miners contributing about four million to it. He said since the mineral was not renewable, it was prudent to ensure proper regulation of the sector.
The event, known as the Global Gold Dore Forum 2017 (GGDF), is an annual forum which brings together gold miners, dore exporters, refiners and other suppliers from West African countries, Democratic Republic of Congo, Tanzania, India, UEA, Turkey and South America. It is organised by Foretell Business Solutions, an Indian research firm that provides advisory services on commodities and has 175 delegates representing 18 countries. It provided the platform for stakeholders to share ideas and knowledge on the best practices.
Minerals and Mining Policy
Addressing the participants, the Chief Executive Officer (CEO) of the Minerals Commission, Dr Toni Aubynn, said Ghana had unveiled its minerals and mining policies to address various concerns in the mining industry and to ensure that mining contributed to the sustainable development of the country.
He said policies such as the adoption of revised minerals and Mining Act 703 was to provide connected purposes of investors in the country, adding that the implementation of a digital mining system in the few months would also allow investors to sit in the comfort of their homes and apply for a licence to do business in the country. He observed that investors did not consult the appropriate sources for assistance but only reported to the commission when the situation was out of hand. “We have received complaints of scam and we appeal to investors to seek the right channel to do their business. We do not want the situation where an investor will report a scam and end up hating the country”, he said.
In order to deepen the transparency, he said, the country was establishing a laboratory that would enable one to know the number of gold exported from the country and that would also ensure feasibility and accountability in the mining sector. Dr Toni Aubynn, therefore, underscored the potential of the country’s free and fair general election to attract investors into the country. “Investors tend to look at the political stability of a country, and Ghana is one of such countries,” he said.
For his part, the President of Foretell Business Solutions Private Limited (FBSPL), Mr Srivatsava Ganapathy, said the gold mining industry had grown in size and had created employment for the youth in the country. He urged the members to share ideas to enrich themselves with knowledge on themining sector.
At the end of the opening ceremony, three personalities were honoured for immensely contributing to the promotion of the mining sector and they included the Chief Executive Officer of Sakti Trading Group (STG), Mr Hari Iyer; the Chairman of Association of Gold Exporters of Ghana, Mr Kwabena Asante Asare; and the Chief Executive Officer of the Minerals Commission, Dr Toni Aubynn.
Gold exporters want consolidation of taxes
B & FT online, Ghana, January 26, 2017
The Association of Gold Exporters, Ghana, has asked that government reduces and consolidates taxes and levies in the industry.
The new government, Kwabena Asante Asare, Chairman of the association, said, should remove some of the many taxes, reduce others and consolidate what is left into one major levy to be deduced at source.
“The first thing they should look at is to find a way to reduce or remove the fees and taxes slapped on exporters,” he told the B&FT in an interview at the maiden Global Gold Dore Forum 2017, which came off in Accra.
The inaugural edition of the forum, organised by Foretell Business Solutions, in association with the Ghanaian gold exporters, is to put the miners and exporters from Africa in direct touch with refiners from India, Middle East and Russia and facilitate responsible and sustainable business.
The gold exporters pay a 3percent withholding tax to the Ghana Revenue Authority (GRA); 0.5percent to Minerals Commission for the Small-Scale Mining Sustainability Fund; and a 0.118percent to the Precious Minerals Marketing Company.
Mr. Asare wants the 3percent withholding tax removed and the rest of the taxes consolidated and charged as a single tax or levy. He explained that the introduction of these taxes account for the rise in smuggling gold and other minerals out of the country.
“All small-scale miners and others export their gold through us and so it is easier to monitor us than the galamsey operators; and so, the 3 percent tax is scaring them away and encouraging smuggling,” he said.
Hari Iyer, CEO of Sakthi Trading Group, the lead sponsor of the conference, noted that governments all over the world are demanding more transparency and responsible conduct from players in the gold market.
“Sakthi Trading Group firmly believes responsible business is the only sustainable business. We would like to understand various initiatives in these areas from government and non-government players in Africa and would like to be a part of the solution where ever the best possible. We are open to new collaborations and partnerships that comply with the regulations and are equivalently fair,” he added.
He explained that it is important that the industry maintains the traceability of the gold produced in the country.
Srivatsana Ganapathy, Managing Director of Foretell Business Solutions, who organised the forum, noted that the gold mining industry is at the cusp of transformation, hence the relevance of the conference.
“This conference marks the beginning of an effort to bring mined gold supply chain participants together and deliberate on the policies, processes, and practises to shape the future,” he added.