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Local Content

Local Content

IN GHANA’S MINING INDUSTRY

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The main focus of developing a Local Content framework for Ghana’s mining industry is to create local employment and to promote growth of domestic manufacturing.

These two aspects, (Human Resource and Goods & Services) of Ghana’s local content framework are supported by the Minerals and Mining Act, 2006 (Act 703) and L.I. 2173, 2012.

Objectives

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The project intends to:

◙ Ensure Ghanaians are employed and trained to work in the mining industry and rise to become part of the highest decision makers.

◙ Ensure local businesses can compete favourably with foreign companies in accessing contracts in the mining industry.

Under Act 703 and L.I. 2173 mine support service providers, holders of mineral rights & holders of licence to export or deal in minerals are required to submit 5-Year Procurement Plan to the Mineral Commission. The 5-year Procurement Plan shall specify the following:

◙ Targets for local procurement covering at least the items specified in the local procurement list as provided for in the regulation;

◙ Other measures to develop the supply of local goods and services, including broadening access to opportunities and technical and financial assistance as well as Preference to companies with highest Ghanaian content where bids are within 2% of each other by price.

◙ Prospects for local procurement

◙ Specific support to providers or suppliers

The Procurement Plan shall be revised annually to take account of Local Procurement List requirements.Local Procurement List Published in 2014, 2015 and 2018 .

Grinding Media Explosives (Emulsion) Cement & Cement Products/Grout Quick & Hydrated Lime Electrical Cables (PVC) Pipes General Lubricants Re-Treading of Tyres

Bolts & Nuts Crucibles Plastic Sample Bags Calico Bags Bullion Boxes Conveyor Rollers Metal/PVC Core Trays Overalls & Working Clothes

High Density Polyethylene & Polyvinyl Chloride Chain Link Fencing/Wire Netting/Barbed Wire Haulage Services & Catering Services. Security Services (Exclusive Ghanaian Directors and Shareholders)

Legal Services (Exclusive Ghanaians) Insurance Services (Strictly Incorporated in Ghana) Financial Services (Strictly Incorporated in Ghana) Contract Mining (Strictly Incorporated in Ghana) Fuel (Exclusive Ghanaian Directors and Shareholders) Activated Carbon Cable Bolt and Accessories, Split Setts, Rebars, Mining Mesh Cupels Wear Resistant Plates eg; Hardox etc.

Key highlights of Human Resource Aspect of Regulation LI 2173 include

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Minerals and Mining Act, 2006 (Act 703) Section 11 (d) (Application for mineral rights)

◙ An application for a mineral right shall be … accompanied with ..., - proposals with respect to the employment and training in the mining industry of Ghanaians.

Section 50 (Recruitment and training of Ghanaians)

...localization policy ... programme for the recruitment and training of Ghanaian personnel as prescribed.

Section 105 (Preference for local products and employment of Ghanaians)

The holder of a mineral right shall in the conduct of mineral operations, and in the purchase, construction and installation of facilities, give preference to:
• materials and products made in Ghana,
• service agencies located in the country and owned by (i) citizens, [ii]give preference in employment to citizens

◙ To the maximum extent possible and consistent with safety, efficiency and economy.

Submission of Localization Plan by companies operating in the mining industry (inclusive of Individual Development Plan (IDP) of Ghanaian counterparts)

Mining Lease Holders: Expatriate level at commencement of operations shall not exceed 10% of total senior staff & shall not exceed 6% after 3 years of commencement of operations [LI; p. 4-5]

Prospecting/Reconnaissance Licence Holders:

(a) Expatriate levels at commencement of operations shall be as follows: → Skilled Expatriate - 10% of total senior staff → Technical and Supervisory - 5% of total senior staff

(b) Expatriate levels after 2 years of commencement of operations shall be Technical and Supervisory – 5% of total senior staff [LI; p.87]

Mine Support Service: Depends on nature of activity [LI; p.88]

Special Cases: Additional expatriates to be justified [LI; S.18-20]

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