Emphasis on investment promotion has been a major objective of the industry with a shift to a comprehensive vision that facilitates greater exploitation of Ghana’s industrial minerals.
Investment opportunities in the industry are in the areas of exploitation or production and industrial processes. They include:
a. The production of industrial minerals for both local and international consumption
b. Applications/processing of industrial minerals in the areas of construction, ceramics, paints, electronics, filtration, plastics, glass, detergents and paper.
a. Companies to set up refinery facilities to serve the local industry for value-added products.
b. Companies to exploit and produce solar salt. Potential exists for the utilization of part of the salt to produce caustic soda which is a raw material for the soap and detergent industry. The chlorine co-product can also be used as water treatment chemical and also serve as raw materials for the production of various health and sanitation chemicals.
c. Companies to produce clinker for the mining industry. Demand for clinker is estimated at over one million metric tons per annum.
d. Companies to exploit the extensive deposit of granite to produce high quality floor tiles.
e. Companies to produce dimension stones for the building industry
f. Suppliers to supply salt for the local market.
Engineering and Services
a. Service companies to provide support services, including contract drilling, assay laboratories, contract mining and geological consultancies to mining companies in the country.
b. Companies to set up manufacturing plants and machinery for the mining industry.
c. Companies to set up downstream production facilities to manufacture key input for the mining industry. Examples, mill balls, drill bits, cyanide and activated carbon.
Specific incentives to the sector include:
a. Depreciation 75% of the capital expenditure incurred in the first year of investment and 50% of the declining balance in subsequent years
b. Investment allowance of 5% in the first year only
c. Losses in each financial year not exceeding the value of the capital allowance for the year may be carried forward. Capitalization of all pre-production expenses approved by the authorities when the holder starts development of commercial mining.
The Holder of a Mining Lease is also granted the following Benefits:
a. Exemption of staff from out of Ghana payments of income tax relating to furnishing accommodation at a mine
b. Immigration quota for expatriate personnel free from any tax imposed by government for the transfer of foreign currency out of Ghana
c. Exemption from the selective alien employment under the selective alien employment decree
Ghana’s Minerals and Mining Act 2006, Act 703 has added some significant aspects to the country’s commercial law and they are:
a. Expenditure on exploration and development may be capitalized in accordance with regulated amortization provision for tax relief
b. Capital allowances have been designed to shorten the pay-back period and include 75% write off of capital in the first year and 50% annually thereafter on a declining balance
c. Retention of a proportion of revenue in foreign currency account for use in acquiring essential equipment and spare parts required for mining operations which would otherwise not be readily available without the use of such earnings
d. Exemptions from import duties on imported plant and equipment