The Ghanaian mining sector is set to improve local procurement and mineral revenue retention due to new mining projects. In 2023, member companies spent US$3.1 billion on local goods and services, representing 53% of total mineral revenue. The trends indicate a growing economic impact, which is anticipated to further amplify as new mining initiatives unfold, supported by the FLSmidth Service Centre and collaboration amongst stakeholders.
The Ghanaian mining sector is poised for enhancement in local procurement and mineral revenue retention due to emerging mining projects, as noted by Dr. Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines. In 2023, member companies collectively expended US$3.1 billion on locally sourced goods and services, constituting 53% of the total mineral revenue of US$5.9 billion, highlighting a commitment to bolster the local supply chain.
According to Dr. Koney, the Minerals Commission has verified the sector’s increasing local economic impact. The Commission’s data indicates that mining firms acquired inputs valued at US$2.4 billion from local vendors, which represents 41% of the total mineral revenue for 2023. This upward trend anticipates even greater contributions to the economy through enhanced local procurement and increased mineral revenue retention with future mining projects.
Dr. Koney stated that Ghana’s mining sector is on track to solidify its developmental role and emerge as a key location for mining support services. He emphasized, “The true value of our industry extends beyond extraction; it lies in how we leverage technology, innovation, and local expertise to enhance productivity, sustainability, and socio-economic benefits.” The expansion of local mining support service providers not only generates employment opportunities but also improves the retention of value within the country.
This transformational shift is cultivating broader economic growth and fostering a more resilient mining industry that emphasizes local capacity development and sustainability. Dr. Koney also remarked on the critical impact of the mining sector on job creation through its collaboration with support service providers, such as FLSmidth.
To optimize this potential, Dr. Koney indicated that the Chamber and its members will prioritize sourcing goods and services from domestic companies. FLSmidth, a prominent mining technology and service supplier, plans to establish or expand seven service centers worldwide, aligning with its CORE’26 mining strategy that seeks to enhance service delivery and productivity for customers.
Locations for these new facilities include Indonesia and Saudi Arabia, while expansions are slated for Brazil, Kazakhstan, and Mongolia. Dr. Koney acknowledged the significant role of the FLS Service Centre in promoting local value and content within the mining sector. He noted its provision of world-class equipment servicing, spare parts, and technical support, which collectively enhance operational efficiency.
“The success of Ghana’s mining industry hinges on collaborative partnerships between government, the private sector, and key stakeholders,” he stated, commending FLSmidth for its initiative. He further encouraged industry players to pursue similar initiatives that boost efficiency, sustainability, and long-term growth in the sector. Additionally, Christian Fabry, Head of Professional Services at FLSmidth, stated, “Our service centres serve primarily as workshops for improving or repairing customer equipment and can also have warehousing capabilities for distribution.”
In summary, Ghana’s mining sector is witnessing significant improvements in local procurement and mineral revenue retention, largely driven by new projects and strategic partnerships. The commitment to local sourcing is not only boosting the economy but also fostering job creation and sustainable practices. The establishment of the FLSmidth Service Centre is a notable advancement in this context, reinforcing the importance of collaboration among stakeholders to enhance the industry’s effectiveness and sustainability.
Original Source: africanminingmarket.com
