[ 2017-05-09 ]

PMMC witnessed close to 70 percent drop in its revenue derived from assaying gold

Gold volumes plummet
Institutions, businesses and individuals who buy,
process and export gold produced by small-scale
miners have witnessed a big drop in volumes of the
metal due to the government’s fight against
‘galamsey’.

The Ministry of Lands and Natural Resources had
placed a moratorium on small-scale mining, whether
licensed or not, plunging companies that buy,
process and export gold into financial turmoil.

Sector Minister John Peter Amewu says the
‘war’ against illegal mining remains the
topmost priority of the government and that it
would ensure that the practice becomes
unattractive.

Small-scale miners produced One million ounces of
gold in 2015
Data from Minerals Commission reveal that
small-scale miners produced over one million
ounces of gold (1,031,179) in 2015 which
represents about 34 percent of Ghana’s total
gold production that year.

Since large-scale gold producers export all their
gold, businesses, institutions, and individuals,
in need of gold, depend solely on small-scale
miners for the precious metal.

PMMC revenue drops by 70% due to galamsey fight

But, as a result of the success of the
‘galamsey’ fight, state-owned Precious
Minerals Marketing Company (PMMC), for example,
has witnessed close to 70 percent drop in its
revenue derived from assaying gold (testing,
checking carat and weight of gold as well as
valuing the metal).

The drop in revenue reflects the drop in the
volume of gold exporters present to PMMC for
testing and value.

From November, last year, PMMC was appointed as
the national assayer of all gold produced in the
country – both small and large scale miners –
before exports while ceding its role of buying,
selling and shipping gold to licensed gold
exporters.

When contacted on the impact of the ‘galamsey’
fight on their operations, General Manager of
PMMC, Venance Dey, told The Finder that the fight
against ‘galamsey’ is non-negotiable as the
illegal act threatens the future of all
Ghanaians.

The way forward

He noted that it was imperative for illegal
small-scale miners to quickly fully adhere to the
directives of the Minister of Lands and Natural
Resources for speedy resolution to facilitate the
resumption of legal small-scale mining.

For him, this is critical to the survival of all
stakeholders, especially the miners, goldsmith,
licensed gold buyers and exporters and PMMC, among
others.

Role for foreigners

They said foreigners, involved in small-scale
mining, must stop their operations since it is
against the laws of the land.

Rather, he said, they should begin to redirect
their energies into investments to process
minerals legally produced in the country, adding
value in the supply chain before exports.

PMMC also operates a jewellery production unit
which, last year, entered into a Public Private
Partnership (PPP) agreement with an Indian Company
Aditan Enterprise Limited and operating as PMMC
Jewellery Limited, a subsidiary of PMMC.

This, he said, means PMMC derives majority of its
revenues from testing, checking carat and weight
of gold purchased by licensed buyers.

$2 billion gold assayed in 2016

He stated that the value of gold assayed last year
was close to $2 billion.
Dey also stated that the directive empowered PMMC
to, for the first time, in the history of Ghana to
test, check carat and weight of gold produced by
all large mining firms as well.

New centre at Kotoka International Airport

However, he said the assaying of gold by
large-scale mining companies has not started due
to some delays in the installation of assaying
machines at Kotoka International Airport (KIA),
which, he indicated, should be ready by the end of
this month.

He disclosed that the World Bank is assisting PMMC
to put up state-of-the-art equipment at KIA, which
is nearing completion, to test, check carat and
weight of gold by large companies before export.

PMMC established in 1963

The PMMC was established in 1963 as Ghana Diamond
Marketing Board and was charged with the
responsibility of purchasing and marketing
Ghana’s diamonds.

In 1965, by Legislative Instrument (LI) 401, the
Company was incorporated as a State-Owned
Enterprise (SOE) and with the promulgation of the
diamonds decree (NRCD 32) in 1972, LI 916 was
enacted to change the company's name to Diamond
Marketing Corporation.

In 1989, PNDC Law 219 was enacted to yet again
change the Company's name to the Precious Minerals
Marketing Corporation.

Then finally in year 2000, it was converted by Act
461 (Statutory Corporations Conversion to
Companies Act) to a Limited Liability Company to
operate under the Ghana Companies Code (Act 179 of
1963) as Precious Minerals Marketing Company
Limited.

Source - thefinderonline.com

... go Back