INVESTOR RELATIONS
FOREIGN GOLD MINING INVESTORS
Ghana has a long and prosperous mining history. More than 100 years ago, it was one of the first countries in West Africa to mine gold. Today, the country produces over 2 million ounces of gold per year.

Over the past 80 years, many foreign companies have entered the mining and quarrying industry in Ghana.
Some of the biggest names in gold mining include Anglo Ashanti, Golden Star, Newmont, Gold Fields, and Kinross

Why Ghana?

The availability of abundant mineral resources with basic geo-scientific data, a propitious investment framework and an effective and predictable legal and institutional system to reduce corruption, enforce the rule of law and enhance transparency in the management of Ghana’s mineral resources makes Ghana an attractive investment destination.

Investment into Ghana's mining and quarrying industries will help to make these already lucrative industries more efficient and more productive, ultimately increasing profits across the board. The Government of Ghana states that increasing Foreign Direct Investment is a priority and acknowledges that attracting Foreign Direct Investment requires an enabling legal environment.

The Government of Ghana has no overall economic or industrial strategy that discriminates against foreign-owned businesses. In some cases a foreign investment may enjoy additional incentives if the project is deemed critical to the country's development. American and other foreign firms are able to participate in government-financed and/or research and development programs on a national treatment basis.

154 Ghanaian and 83 foreign companies have been issued with licenses, mainly to prospect for gold. Some of the major international mining companies operating in the country are Normandy Piesadon, Goldfields Limited, Lasource, as well as several juniors from the United States, Canada and Australia.

Most of these companies have used Ghana as a base to venture into other countries in the sub-region. In a continent where many countries are landlocked, Ghana has good ports that allow shipping directly to the United States and Europe. It is a member of the WTO, benefits from trade preferences accorded by the EU to African, Caribbean and Pacific (ACP) countries and is beneficiary of the African Growth and Opportunity Act (AGOA) of the United States. A liberalized telecommunications sector and many Internet providers are available. It also has one of the few well-functioning stock exchanges in Africa, and provides a wide range of incentives for foreign investors.

Legislature

In the past, the government passed laws to encourage foreign investment and replaced regulations perceived as unfriendly to investors.

These laws with generous provision of tax incentives to foreign investors wield jurisdiction over fiscal issues of the mining sector. The Minerals and Mining Law, PNDCL 153 of 1986 as amended by the Minerals and Mining (Amendment) Act - Act 475 of 1995, is the key legislation governing mining in Ghana. The enactment of the law has had a very positive effect on the development of the industry.

Registering a business is a relatively easy procedure, the process involved though, is quite lengthy and requires compliance with regulations and procedures of at least five different government agencies including GIPC, Registrar General Department, Ghana Revenue Authority (GRA), Ghana Immigration Service, and Social Security and National Insurance Trust (SSNIT)

More information on investing in Ghana can be obtained from GIPC's website, www.gipcghana.com.

GOLD TRADE AND EXPORT

The mining industry of Ghana accounts for 5% of the country’s GDP and minerals make up over 37% of total exports of which gold contributes over 90% of the total mineral exports. Thus, gold remains the focus of Ghana’s mining and minerals development industry. Ghana has twenty-three large scale mining companies and over three-hundred registered small-scale mining groups and ninety mine support service companies.

Gold trading in Ghana began from ancient history in the Trans-Saharan gold trade and the country was once known as Gold Coast. With gold export bringing in about 48% of Ghana’s revenue through mineral royalties, employee income taxes, and corporate taxes, it is an area of high national interest. Gold is popular as an investment and investors buy gold as a means of diversifying risk; especially through the use of future contracts and derivatives.

The gold market is volatile; that is, liable to change and as such finding a trend keeps one in the lead. A considerable amount of resources will have to be allocated to looking into the foreign market and modifying the products to meet demand and regulations.

 

EXPORTING GOLD FROM GHANA

The following are outlined procedures for export of gold by Licensed Gold Exporters (LGE). A Licensed Gold Exporter (LGE) who intends to export gold shall inform the Precious Minerals Marketing Company Limited (PMMC) in writing of its export plans at least two (2) working days before the planned weekly export.

• The LGE shall submit the gold ore to be assayed by PMMC at a designated assay center, together with all Export documents.
• The PMMC shall assay the gold ore presented by the LGE using the appropriate assay method as agreed by the LGEs, Minerals Commission and the PMMC.
• The PMMC shall prepare a report of analysis of the gold ore presented by the LGE and issue copies to the Bank of Ghana (BOG), the Ghana Revenue Authority Custom Officer stationed at the Assay Centre and the Minerals Commission.
• The PMMC shall invoice the LGE in respect of the assay at the agreed rate of 0.176% of the value of gold assayed and the LGE shall pay same to PMMC. The payment of this fee is without prejudice to any fee that may be charged by the Minerals Commission.
• The GRA Customs Official at the Assay Centre shall inspect and supervise the sealing of the assayed gold ore with the Customs Division’s seal and endorse the Customs Declaration Form. The sealing of the assayed gold ore by the Customs Official shall be done in the presence of an authorized representative of the Assay Centre who shall also affix the seal of the PMMC Assay Centre at the same time.
• The LGE shall complete the required documentation at the Kotoka International Airport (KIA) before exporting the assayed gold.
• Under no condition shall gold core be exported by LGE without the seals of the Customs Division of the Ghana Revenue Authority and the Government designated laboratory i.e. PMMC and accompanied with full documentation.
• All LGEs shall submit monthly returns to Minerals Commission in accordance with the terms and conditions of their license agreements.
• All persons who desire to obtain permits for buying gold shall apply to the Minerals Commission via a LGE

GOLD MINING AND EXPLORATION
It is essential to get a license when being involved in the exploration of gold. To obtain a small-scale mining license, you:

• must be a Ghanaian of at least 18 years
• Notify the Small-Scale District Center of the Minerals Commission of your intentions.

The District Officer will inspect the site to determine its suitability and prepare a report. If found suitable, the area will be demarcated and site plans prepared by the prospective licensee.

A notice of intention to allocate the area for small-scale mining will be published at the District Assembly for twenty-one (21) days. If no objections are made, the applications will be subsequently submitted together with the field report by the District Officer to the Head Office.

The Minerals Commission will check to ensure that the area is not already under licence. You will then be advised to obtain an Environmental permit from the EPA. The Minister then issues the License, and voila! You are in business.

The negative impacts of small scale mining far outweigh any seeming benefits and individuals must endeavour to observe rules and regulations to prevent such mishaps. Illegal mining presents itself in many forms some of which include:

• Mining without the requisite license and permit.
• With a licensed is secured, mining in unapproved area
• Mining while the license application is still being processed
• Mining in prohibited places such as forest and game reserves, close to rivers and in water bodies, close to residential areas and other infrastructures

Mining rights granted by chiefs, land owners and communities are still considered illegal and persons found in this act are answerable to the law.

 

GOLD EXPORT PROCEDURES

Helvent Holdings is an ideal and secure private Gold Trading and Export Company in the industry, enabling investors to buy and export precious metals with confidence and total security.
We will walk you through a simple procedure for potential gold exporters.

• The exporter will be required to furnish Helvent Holdings with full address and telephone number of the consignee at the overseas destination for the export.
• Helvent Holdings will be responsible for the transportation of gold to Kotoka International Airport, Accra for onward delivery to the airline.
• The Exporter/Consignee shall be responsible for the insurance and airfreight charges of the gold to be exported.
• The gold to be exported will be accompanied with the following documents;
• Packing list (Assay invoice)
• Proforma invoice which will indicate
• Purity (i.e. Gold content) Quantity of gold in ounces and Kilograms.
• Value in both US Dollars and local currency (the gold will be priced based on the spot price of the London Bullion Metal Association (LBMA) on the day of export)
• Bank of Ghana export documents.
• Customs exports documents (certificate of origin if required) will be processed and sent to various Authorities for approval prior to export.
• Helvent Holdings fee for the export of gold is 0.150% and USD $20- $30 per kilogram smelting fees.

OTHER INFORMATION 
OUR AIRLINE PARTNERS:

• Emirates Airlines, Accra- Ghana
• KLM Airlines, Accra - Ghana

 

OUR GOVERNMENT AGENCIES FOR REFERENCES:

• Minerals Commission of Ghana
• Customs, Excise and Preventive Services (CEPS)
• Bank of Ghana (Exports Division)
• Ghana Airports Company Ltd (GACL)