Procurement of Goods and Services in the Mining Industry- The 5th Edition

The Minerals Commission of Ghana has published a new procurement list, which will come into effect from 1st January 2023. The new list, which is the fifth edition, has 50 items, an increase from the 41 items on the fourth edition. The procurement list is based on the Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431), which came into force on 22nd December 2020.

The purpose of the Regulations is to promote job creation and economic development in the mining industry. The regulations aim to achieve this by using local expertise, goods, and services in the mining industry’s value chain and their retention in the country. The regulations also aim to increase the capability and international competitiveness of domestic businesses and create mining and mineral-related support industries that provide jobs and sustain economic development.

According to Regulation 7 of L.I. 2431, the Minerals Commission is required to publish a local procurement list annually in the Gazette, the Commission’s website, and a newspaper with nationwide circulation. The procurement list stipulates the goods and services with Ghanaian content that are to be procured in the country.

The new procurement list includes goods and services such as grinding media, explosives, cement and cement products, electrical cables, and plastic sample bags. The list also includes services such as legal services, placement of insurance/reinsurance services, catering services, and security services. The list specifies that these services must have exclusive Ghanaian directors and shareholders, except for the insurance/reinsurance services and financial services, which must have a minimum of 60% Ghanaian directors and shareholders.

The mining industry’s support services such as freight forwarding, warehousing, and logistics services, must be strictly incorporated in Ghana with exclusive Ghanaian directors and shareholders. Additionally, medical services and plant installation activities must have exclusive Ghanaian directors and shareholders.

Underground mining operations and geophysical airborne-based surveys must be incorporated in Ghana with a minimum of 40% Ghanaian directors and shareholders, increased from the minimum of 30% under the fourth edition.

The new procurement list reflects the government’s commitment to promoting local content and local participation in the mining industry. The government believes that the procurement of goods and services from local businesses will help create jobs, support economic development, and increase Ghanaian businesses’ international competitiveness.