Energy And Infrastructure

Authored by Araba Attua-Afari

CLASSIFICATION OF NEW MINE SUPPORT SERVICES

In this newsletter, we consider the local content and participation implications of the Minerals Commission's recent exercise of its statutory power to expand the list of mine support services occasioning registration with them.

Mineral right holders are required to procure certain services from companies registered for that purpose with the Minerals Commission. The Minerals Commission is the regulatory authority responsible for the regulation and management of the use of the mineral resources of Ghana and the co-ordination of the policies related thereto. Companies registered with the Minerals Commission to provide mine support services are known as "mine support service providers".

Along with existing obligations, such as the obligation to give preference to the maximum extent possible to materials and products made in Ghana, services agencies located in Ghana and owned by Ghanaians, and Ghanaian labour, the classification of certain mine support services as services reserved for Ghanaians aims to help achieve the Government of Ghana's target of achieving 90% local content in the extractive industry by 2020.

There are two categories of mine support service providers, namely, Class A mine support service providers and Class B mine support service providers. One of the main distinctions between the classes is whether or not the class has foreign ownership restrictions. Whilst a Class A mine support service provider need not be wholly-owned by a Ghanaian citizen, a Class B mine support service provider must be a Ghanaian. The list of Class B mine support services consists of contract mining for small scale miners, haulage services, and any other

mining-specific and mining-exclusive service that the Minerals Commission considers necessary for the effective and...