Full text: Chamber of Mines CEO’s speech at FLS Service Centre commissioning
Source: myjoyonline

It is with great pleasure that I join you today for the inauguration of the FLS Service Centre, an investment that underscores the evolving landscape of Ghana’s mining industry and its commitment to efficiency, sustainability, and value addition. I extend my heartfelt congratulations to the leadership of FLSmidth for this significant milestone. The establishment of this service centre is not only a commendable investment but a strategic move that will enhance the operational effectiveness of the mining sector in Ghana and beyond. It reflects the increasing importance of technology-driven solutions in improving efficiency, reducing costs, and strengthening the overall competitiveness of the industry. The mining and quarrying industry in Ghana remains a cornerstone of our national economy contributing about 10% to Ghana’s GPD in 2024. Beyond its contribution to GDP, the mining sector remains the largest source of export revenue, providing crucial foreign exchange earnings that sustain our economy. Gold alone accounted for over 50% of total export revenue, reinforcing Ghana’s status as Africa’s leading gold producer in 2024. On the whole, the minerals sector contributed over 60% of total export revenue, far in excess of the discrete receipts from crude oil, cocoa and inward remittance. To ensure that the sector’s dominance in merchandise exports translates into increased availability of forex for financial intermediation and its pass through effect on exchange rate stability, the Chamber’s members returned an average of 74% of their export earnings to the country through the central and commercial banks in the last five years. Recent fiscal data highlights the preeminent role of the mining sector in funding the country’s development priorities. In 2023, the mining industry contributed GH₵11.5 billion in taxes, representing approximately 23% of direct domestic revenue mobilized by the Ghana Revenue Authority and 9% of government revenue. These statistics are remarkable when considered within the context that it largely excludes the small-scale gold sector which accounts for nearly 30% of national gold production. Further, the greatest impact of the mining sector on job creation is through its relationship with mining support service providers, such as FLSmidth. To optimize this potential, the Chamber and its member companies prioritize purchases of goods and services from resident companies. As the ecosystem of local mining support service providers expands, it not only generates more employment opportunities but also enhances value retention within the country, fostering broader economic development. In 2023, the Chamber’s producing member companies procured goods and services worth $3.1 billion from local vendors. This expenditure represents 53% of their total mineral revenue of $5.9 billion. Similarly, the Minerals Commission data on local content, which tracked expenditure on 50 items as of 2023, shows that mining companies purchased inputs worth $2.4 billion from in-country vendors, that is, both manufacturers and retailers. This translates into 41% of mineral revenue in 2023. With a pipeline of new projects, Ghana’s mining sector is poised to deepen its developmental footprint on Ghana’s economy and become a major hub for mining support services. Indeed, the true value of our industry extends beyond extraction; it lies in how we leverage technology, innovation, and local expertise to enhance productivity, sustainability, and socio-economic benefits. This is where investments like the FLS Service Centre play a transformative role. The establishment of this facility aligns with the Chamber’s drive for in-country value creation, local content development, and a robust mining support ecosystem. By providing world-class equipment servicing, spare parts, and technical support, this centre will: Minimize operational downtime, allowing mining firms to operate more efficiently. Enhance supply chain reliability, reducing the industry’s dependence on overseas servicing. Strengthen local expertise, ensuring Ghanaian engineers and technicians have access to advanced training and cutting-edge industry knowledge Beyond its direct operational benefits, the FLS Service Centre will create jobs, employing a diverse workforce, from engineers and technicians to administrative professionals. These are not just jobs—they are livelihoods that support families, empower communities, and drive national economic growth. Moreover, this facility will contribute to national revenue generation through taxes and levies, reinforcing the government’s ability to fund critical development initiatives. Recently, the Chamber engaged the African Center for Energy Policy to conduct a study on how to position Ghana as the hub for mining support service in West Africa. The study revealed several opportunities within the mining supply chain, and these are opportunities we seek to encourage businesses in Ghana to take advantage of. The success of Ghana’s mining industry hinges on collaborative partnerships between government, the private sector, and key stakeholders. In that regard, I commend FLSmidth for its foresight in establishing this facility and for reaffirming its commitment to Ghana’s industrial and economic progress. I also encourage other industry players to explore similar value-enhancing initiatives that promote efficiency, sustainability, and long-term sectoral growth. Investments in local manufacturing, mining technology, and workforce development are crucial in securing Ghana’s position as a regional hub for mining excellence. As we celebrate this milestone, we must also look to the future of Ghana’s mining industry. Continued investment in innovation, sustainability, and responsible mining practices will be key to driving long-term economic transformation. The Ghana Chamber of Mines remains committed to working alongside all stakeholders to build an industry that not only generates wealth but also delivers lasting benefits to the people of Ghana. Once again, congratulations to FLSmidth on this remarkable achievement. I have no doubt that the FLS Service Centre will be a game-changer, reinforcing Ghana’s leadership in mining excellence. Thank you. By Ghana Chamber of Mines CEO, Dr Sulemanu Koney