The Minister of Lands and Natural Resources, Samuel A. Jinapor, has touted the success of government’s Gold4Oil policy saying it stabilised the local currency and reduced the cost of fuel at the pump.
He said the innovative measures adopted by government to purchase crude oil without the dollar currency, had become the game changer of the cedi depreciation, and contributed significantly to the national economy.
Currently, he stated, that 800,000MT of gasoline and gasoil, representing almost 30 per cent of the country’s total crude oil consumption, was purchased through the policy, adding that plans were underway to scale up the policy to cover 50 per cent of national consumption.
Contributing to the debate on the Budget Statement in Parliament yesterday, Mr Jinapor, who is also the Member of Parliament (MP) of Damongo, said, the introduction of the policy showed the leadership skills of the President and the Vice President, which was defined by the choices they make in times of adversity.
“In times of crisis, what is required is leadership as it relates to choices, and the President and the Vice President made bold choices that have impacted our economy,” he stated.
According to the Minister, until the Gold4Oil policy was introduced, the Bank of Ghana’s (BoG) reserves were insignificant, but the implementation of the policy alongside the Domestic Gold Purchase policy, had shored up the Bank’s reserves.
He noted that, the government, through the Ministry of Lands and Natural Resources was working to scale up gold production to support the programme.
Speaking on the mining sector’s contribution to the economy, Mr Jinapor said the sector contributes almost nine per cent of Gross Domestic Product (GDP), with gold, alone, contributing some US$4.67 billion in exports as at August 2023, representing 43.4 per cent of total exports this year.
He said government is working on new mines, including large scale mining companies in the northern part of the country, and the expansion of existing ones, to boost production. He added that government is working with the mining companies to contribute to development of mining areas, including the construction of an airport at Bolgatanga.
Mr Jinapor, also, touted the mining lease granted for the exploitation of lithium, which provides for value addition, increased royalties and local participation, saying it is one of the best in the world adding the government was investing in the exploration of other green minerals such as graphite, manganese and bauxite to support the green energy transition.
“These and several other measures being implemented by government will contribute to achieving the one trillion economy targeted by government,” Mr Jinapor added.
It would be recalled that the government, in 2020, introduced the Gold4Oil programme to, among others, purchase oil with gold produced in the country, and ease the pressure on the Ghana Cedi.
The policy required large scale mining companies to sell 20 per cent of their refined gold to the BoG, while small scale mining companies were required to sell all their gold to the bank.
In a related development, Mr Jinapor denied the allegation that UNESCO’s buildings were being sold, adding that UNESCO was currently occupying the building.
He, also, clarified that the Clerk of Parliament’s official residence alleged to have been sold in 2019, was actually sold in 2015.
He cautioned against making sweeping statements about the sale of land without cross-checking from the Lands Commission.
