Chamber of Mines urges BoG to publish full mining forex inflows

By Kizito CUDJOE

Ghana Chamber of Mines has called on the Bank of Ghana (BoG) to publish a detailed and disaggregated account of foreign exchange inflows from the mining sector, warning that partial data risks misrepresenting the industry’s contribution to the economy.

The request follows claims attributed to the Gold Board that large-scale miners repatriate no more than 20 percent of export proceeds. The chamber said this figure captures only forex sold directly to the central bank and excludes significant inflows routed through commercial banks.

It argued that a complete accounting across both channels is necessary for informed policymaking, sound macroeconomic management and to sustain investor confidence in the sector.

In a statement responding to the claim, the chamber said large-scale mining companies repatriate export proceeds through two main channels: direct sales of foreign exchange and bullion to the central bank and transfers through commercial banks operating in Ghana.

According to the  statement, mining firms maintain accounts with local commercial banks, through which a substantial share of export proceeds is returned and used to meet domestic obligations. These include foreign currency payments such as royalties to government as well as payments for utilities like electricity and fuel, which are invoiced in dollars but paid to local institutions.

It added that part of the forex repatriated through commercial banks is converted into cedis to cover local costs including wages, payments to suppliers, government agencies and community investment projects.

“These conversions increase domestic foreign exchange availability and support exchange rate stability,” the chamber said, adding that about 70 percent of export proceeds from its producing members are returned to Ghana through a mix of central bank and commercial banking channels.

The chamber also pushed back on the metric underpinning the 20 percent claim, stressing a need to distinguish between gross forex repatriation, total inflows into the country and net retention after external obligations are met.

It said gross repatriation, consistent with balance-of-payments principles, is the appropriate measure of the sector’s contribution and excluding commercial bank flows understates actual inflows.

The industry body noted that the central bank had, until recently, required mining companies to offer it a right of first refusal on forex intended for sale to commercial banks – underscoring the recognised role of that channel.

It said data needed to present a full picture of mining sector forex inflows should therefore be available to the Bank of Ghana and urged the regulator to publish them to support informed public debate.

While disputing the figures, the chamber reiterated its support for GoldBod’s mandate to strengthen the country’s mineral export revenue framework, particularly in the artisanal and small-scale mining sector.

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