The Ghana Chamber of Mines has contested claims by the Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, that large-scale mining companies repatriate less than 20% of their mineral export proceeds to Ghana. The Chamber described the figure as “materially misleading” in a statement released following remarks made at a ceremony marking the sale of the Damang Gold Mine’s first gold output to the Bank of Ghana through GoldBod.
Context of the Dispute
The controversy stems from contrasting statements regarding the repatriation of foreign exchange (forex) by the large-scale mining sector. Mr. Gyamfi, speaking at the Damang Gold Mine event, highlighted the forex contribution of artisanal and small-scale mining (ASM) in contrast to larger operations.
He stated that large-scale mining companies sold only about 10% of their output, approximately 10 tons of nearly 100 metric tons produced in 2025. Mr. Gyamfi further asserted that when physical gold sold to the Bank of Ghana and repatriated foreign exchange were combined, the figure would not exceed 20%.
The GoldBod CEO argued that Ghana retained only a small portion of the nearly $10 billion worth of gold produced by large-scale firms in 2025. He attributed this to existing agreements that allow many multinational mining firms to retain substantial shares of export proceeds abroad, in some cases up to 100%.
Chamber of Mines’ Counterarguments
The Chamber of Mines contends that the statistic cited by Mr. Gyamfi is based solely on transactions conducted directly with the Bank of Ghana. This methodology, according to the Chamber, overlooks significant forex inflows that are channelled through commercial banks operating within Ghana.
The Chamber outlined two recognised channels for mining companies to repatriate export earnings: direct sales of foreign exchange and bullion gold to the Bank of Ghana, and transfers through commercial banks domiciled in Ghana. They argue that any accurate assessment must encompass both these channels.
According to the Chamber, a substantial portion of export proceeds repatriated via commercial banks is utilized for settling local obligations. These include royalty payments to the government, utility bills, fuel purchases, employee salaries, payments to local suppliers, and corporate social responsibility initiatives in mining communities.
Furthermore, the Chamber noted that some foreign currency brought into the country through these channels is converted into Ghana cedis. This conversion, they state, supports domestic foreign exchange liquidity and contributes to exchange rate stability.
“Based on industry data, approximately 70 per cent of mineral export proceeds from the Chamber’s producing members is returned to Ghana through a combination of the central bank and commercial banking channels,” the statement read.
Defining Repatriation: Gross vs. Net
The Chamber also drew a distinction between “gross forex repatriation” and “net forex retention.” Gross repatriation refers to the total amount of foreign exchange returned to Ghana, whereas net retention accounts for the balance remaining after companies settle their external obligations.
The Chamber maintains that gross repatriation is the appropriate metric for evaluating the mining sector’s contribution to Ghana’s foreign exchange position, aligning with balance-of-payments accounting principles.
The Chamber referenced a past Bank of Ghana policy that granted the central bank a right of first refusal on foreign exchange designated for commercial banks. This policy, they argued, implicitly acknowledged the significance of the commercial banking channel for forex inflows.
Implications and Future Outlook
This disagreement underscores the ongoing national debate surrounding the value retained from Ghana’s mineral resources. It is particularly pertinent as the government actively pursues reforms aimed at bolstering foreign exchange reserves and increasing local benefits derived from gold production.
The Chamber has called for the publication of a “disaggregated and transparent account” of mineral sector foreign exchange flows through both the central bank and commercial banks. Such transparency, they believe, would enhance public understanding and inform policy discussions more effectively.
The differing perspectives highlight the complexity of tracking and quantifying the true economic impact of the mining sector on Ghana’s forex reserves. Future policy discussions and reforms will likely need to address these measurement challenges and ensure comprehensive reporting mechanisms are in place to accurately reflect the sector’s contribution to the national economy.
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