The Ghana Chamber of Mines has pushed back against claims that large-scale mining companies repatriate less than 20 percent of their mineral export proceeds, describing the assertion as “materially misleading” and based on an incomplete assessment of foreign exchange inflows into the country.
In a formal statement responding to comments attributed to the Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, the Chamber said the figure cited at a recent ceremony marking the sale of Damang Gold Mine’s first gold output to the Bank of Ghana represents only a narrow portion of actual forex repatriation by large-scale mines.
According to the Chamber, the statistic reflects only bullion gold and foreign exchange sold directly to the Bank of Ghana and ignores substantial inflows that enter the economy through Ghana’s commercial banking system.
The Chamber explained that export proceeds from large-scale mining companies were repatriated through two established channels: direct transactions with the Bank of Ghana and transfers through commercial banks domiciled in Ghana.
“A comprehensive and technically sound assessment of mineral export proceeds must incorporate both channels,” the Chamber said.
“Focusing solely on sales to the Bank of Ghana captures only one pathway and significantly understates the sector’s contribution to Ghana’s foreign exchange position.”
It stressed that the widely quoted 20 percent figure reflects only the central bank channel and therefore presents an incomplete picture of overall forex inflows from the large-scale mining segment.
Highlighting the role of commercial banks, the Chamber noted that large-scale mining companies maintain foreign currency accounts within Ghana through which significant portions of their export earnings are repatriated and deployed to meet domestic obligations.
These obligations include the payment of mineral royalties to the Government of Ghana—typically denominated in United States dollars—as well as payments for locally supplied services such as electricity and fuel.
Although such services are provided by Ghanaian institutions, invoices are often denominated in foreign currency under existing Bank of Ghana dispensations.
Beyond these payments, the Chamber pointed out that substantial forex inflows through commercial banks are converted into Cedis to fund local costs, including employee salaries, payments to in-country suppliers, statutory payments to government agencies and corporate social investment projects in mining communities.
“These conversions directly augment domestic foreign exchange supply and contribute to exchange rate stability,” the statement said.
Based on industry data from producing members, the Chamber estimates that roughly 70 percent of mineral export proceeds are returned to Ghana through a combination of the central bank and commercial banking channels.
The Chamber also cautioned against conflating gross forex repatriation with net forex retention, emphasising that the correct metric for assessing the mining sector’s contribution to the economy is gross repatriation.
Gross repatriation refers to the total foreign exchange returned to Ghana, consistent with balance-of-payments accounting principles, while net retention reflects what remains after external obligations have been settled.
“The 20 percent figure does not meet this standard, as it excludes the commercial banking channel entirely,” the Chamber said, adding that a holistic accounting would yield a “materially higher” estimate of forex inflows attributable to large-scale mining operations.
Placing the debate in context, the Chamber recalled that until recently the Bank of Ghana required mining companies to grant it a right of first refusal on foreign exchange intended for sale to commercial banks. This policy, it argued, implicitly recognised the importance of the commercial banking channel in the repatriation framework.
As a result, the Chamber believes that sufficiently detailed data on mineral sector forex inflows should already be available to inform a more comprehensive and transparent assessment.
It therefore called for the publication of disaggregated data showing mineral export proceeds flowing through both the central bank and commercial banks to support informed public discussion and evidence-based policymaking.
Despite the disagreement over figures, the Chamber reiterated its support for the mandate of the Ghana Gold Board in strengthening Ghana’s mineral export revenue framework, particularly in improving forex inflows from the artisanal and small-scale mining sector to the Bank of Ghana.
“The Chamber remains fully supportive of the GoldBod’s role in the industry,” the statement said, stressing that its intervention is aimed at ensuring accuracy in public discourse rather than undermining ongoing reforms.
In its concluding remarks, the Chamber urged policymakers, regulators and the public to adopt a comprehensive and data-driven approach when evaluating the mining sector’s forex contribution.
“Accurate measurement of foreign exchange flows is essential for sound macroeconomic management, effective policymaking and sustaining confidence in Ghana’s mining sector,” it said.
The exchange underscores growing scrutiny of mineral revenue flows at a time when government institutions are seeking to maximise the domestic retention and developmental impact of Ghana’s mineral wealth.
By: Christian Akorlie / businesspostonline
