+233 030 277 1318
+233 030 277 2783
info@mincom.gov.gh
Minerals House
#12 Switchback Road
Residential Area
Cantonment - Accra
GL- 060 -1131
Local Content
In Ghana's Mining Industry
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
- Ensure Ghanaians are employed and trained to work in the mining industry and rise to become part of the highest decision makers
- 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.
- Ensure local businesses can compete favourably with foreign companies in accessing contracts in the mining industry.
PROCUREMENT PLAN
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;
- Prospects for local procurement
- Specific support to providers or supplier
- 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.
PROCUREMENT LIST
The Procurement Plan shall be revised annually to take account of Local Procurement List requirements.
Local Procurement List Published in 2014, 2015, 2018 and 2022
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.
THE NEW PROCUREMENT LIST (5TH EDITION)
The Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) came into force on 22 December 2020. The purpose of the Regulations among others is to:
(a). Promote job creation through the use of local expertise, goods and services, businesses and financing in the mining industry value chain and their retention in the country;
(b). Achieve the minimum local level and in-country spend for the provision of the goods and services in the mining industry value chain;
(c). Increase the capability and international competitiveness of domestic businesses;
(d). Create mining and mineral related support industries that will provide jobs and sustain economic development.
Pursuant to Regulation 7 of L.I. 243 1, the Commission is required to publish in the Gazette, the website of the Commission and a newspaper with nationwide circulation a local procurement list which stipulates the goods and services with Ghanaian content which are to be procured in the country.
Regulation 7(3) of L.I. 2431 further states that the Commission shall review the procurement list annually.
There are currently forty-one (41) items on the Procurement List which is the fourth edition and was published by the Minerals Commission in early 2022. The Commission commenced the implementation of the fourth edition in 2022.
The new list which is the fifth edition has fifty (50) items as set out below.
The implementation shall commence on I st January 2023.