Ghana’s mining sector is enhancing local procurement and revenue retention due to new projects. In 2023, member companies spent US$3.1 billion locally, 53% of total revenues. The FLSmidth Service Centre’s establishment boosts local content and operational efficiency, with call for collaborative industry partnerships to foster growth.
Ghana’s mining sector is poised for enhancement in local procurement and mineral revenue retention, primarily due to several new mining projects in development. Dr. Sulemanu Koney, Chief Executive Officer of the Ghana Chamber of Mines, emphasized that in 2023, member companies of the Chamber invested US$3.1 billion in locally sourced goods and services, representing 53% of the industry’s total mineral revenue of US$5.9 billion, indicating an increasing commitment to local supply chain strengthening.
Dr. Koney noted that data from the Minerals Commission corroborates the sector’s growing local economic impact. The Commission tracked expenditures on 50 key mining-related items, revealing that mining companies procured US$2.4 billion from local vendors, which accounted for 41% of total mineral revenue in 2023. These trends suggest that with ongoing mining projects, anticipated contributions from local procurement and mineral revenue retention will further amplify.
At the commissioning of the FLSmidth Service Centre in Accra, Dr. Koney asserted, “Ghana’s mining sector is poised to deepen its developmental footprint and become a major hub for mining support services.” He emphasized that the industry’s true value rests not only in its extraction activities but also in leveraging technology, innovation, and local expertise to bolster productivity, sustainability, and socio-economic advantages.
The expansion of local mining support service providers is generating more employment opportunities and enhancing value retention within the country. This paradigm shift is catalyzing wider economic development and fostering a resilient mining industry focused on local capacity building and sustainable practices. Dr. Koney remarked, “The mining sector’s greatest impact on job creation is through its relationship with mining support service providers, such as FLSmidth.”
To capitalize on this potential, the Chamber prioritizes purchasing goods and services from resident companies. FLSmidth, a prominent mining technology and service supplier, plans to unveil or expand seven service centers globally this year, directly supporting its CORE’26 mining strategy aimed at service growth. New facilities will be strategically located not only in Ghana but also in Indonesia and Saudi Arabia, with expansions in Brazil, Kazakhstan, and Mongolia.
Dr. Koney acknowledged the significant role of the FLSmidth Service Centre in promoting in-country value and local content, providing world-class equipment servicing, spare parts, and technical support to enhance operational efficiency for mining firms. He remarked, “The success of Ghana’s mining industry hinges on collaborative partnerships between government, the private sector and key stakeholders. I commend FLSmidth for its foresight in establishing this facility and for reaffirming its commitment to Ghana’s industrial and economic progress.”
Christian Fabry, Head of Professional Services at FLSmidth, concluded, “Our service centres serve primarily as workshops for improving or repairing customer equipment and can also have warehousing capabilities for distribution. With these new openings and expansions, we further strengthen our service capabilities and best-in-class service offerings to customers.”
In conclusion, Ghana’s mining sector is experiencing significant growth in local procurement and mineral revenue retention, bolstered by new projects and investments in local services. The partnership between mining companies and local vendors is generating economic opportunities and enhancing operational efficiency. The establishment of service facilities, such as the FLSmidth Service Centre, exemplifies the commitment to sustainability and the development of local expertise, creating a resilient and prosperous mining ecosystem in Ghana.
Original Source: africanminingmarket.com
