The Lands and Natural Resources Minister, Kweku Asomah-Cheremeh has directed the Ghana Manganese Company to ensure local content participation in its operation.
He gave the directive during a tour of the Ghana Manganese Company on Tuesday, April 2, 2019.
“Local content here means that getting employment for our people. And our people who are doing haulage are treated as such. In this circumstance, we are talking of they getting the requisite documentation to usher them into a proper business. I say proper business because in mines you have to get an agreement with the employer. And that agreement is the document you take to the minerals commission for you to be recognized as such.”
“They are talking of over three companies that have gotten contracts. That is not the proper local content issue that we are thinking about. It is a matter that I will raise and take seriously. If they do not comply, the wrath of government will be visited on them…As a sector minister, I will have to champion that sanction against them which may result in the revocation of their license,” the Minister added.
The Minister’s visit was to afford him the opportunity to find out whether or not the company was compliant with rules in the sector.
It was revealed that some of the 40 haulage companies working for the company had no permits.
This minister said such action could cost the company a lot of issues.
The Minister was also unhappy with the manganese company threatening that its license could be revoked if it fails to implement terms of an agreement it reached with government early this year.
Per the terms, the company was to mine within five million tons per annum which is contrary to the seven million tons per annum it is allegedly extracting currently.
The company which was also to prioritise Cabinets’ approved local content participation has allegedly failed to do so.
In July 2018, the-Ministry indicated that the government was not going to renew the mining lease of the company for under-declaration, violating previous contractual terms and shortchanging government.
At the time, it had allegedly failed to involve the government in the pricing of manganese ore that was being sold to a firm in China.
The company’s actions according to government could have caused Ghana to lose millions of dollars in revenue.
In January 2019, the Ministry commissioned a team to audit the company.
Sources indicated that the ministry had concerns over the lack of transparency from the company.
Some points of concern included the prices of manganese, the grade of ore and royalties expected to be paid to the state.
The management of the company and cabinet subsequently agreed on some terms to improve the operations of the company and also increase local content.
Responding to the Minister’s queries, Benjamin Astu Quashie, the Chief Operating Officer of the Ghana Manganese Company, said the ongoing audit will vindicate them adding that they are already taking steps to implement the agreement reached.
He said “we do not believe that we are shortchanging the government. There is an ongoing audit by the government. The results of this audit will decide whether or not we are shortchanging government. Government taught it prudent to bring in foreign auditors to audit our books. That work is ongoing”.
On Local content, the Chief Operating Officer, Benjamin Astu Quashie assured that they are taking steps to employ or contract more Ghanaians in the company’s operations.
“With regards to local content, we at GMC hold that dear to our heart and we are actually allowing the local companies to participate in the business going on here. I believe that is what we are going to do going forward. In terms of the contract, it is an ongoing process and we have actually given letters of intent to some of the haulage companies and with that, it is going to be a step to having the contract signed,” he said.
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Kojo Agyeman/citinewsroom.com/Ghana