Exporting Gold From Ghana; The Need For Due Diligence

Ghana is endowed with abundant natural resources, which have played a key role in the development efforts of the country. Ghana has a long history of mining especially for gold. Gold is a precious metal of high monetary value, sought after for the production of coins, jewelry and other artifacts. It is an established fact, evidence by records over the years that, gold is a major foreign exchange earner for Ghana's socioeconomic development.

Over the years, Ghana's stable economy and abundance natural resources especially gold have attracted many foreign entities and or individuals to develop strategic business partnerships with local Ghanaian companies for the export of these resources. A lot of these individuals have been cheated of their hard earned resources by unscrupulous entities masquerading as licensed gold buying companies by regulators when in fact they have no such license. This article is therefore intended to throw light on the procedures and legislative framework established for the sale and export of gold from Ghana.

It is important, following the above warning for foreigners be it private individuals and incorporated companies seeking to engage in gold purchase and export in Ghana to understand that, this is a regulated industry. It is governed by laws with established institutions mandated to ensure compliance. These institutions include the Minerals Commission (MC) of Ghana and the Precious Mineral Marketing Company (PMMC) among others.

There is therefore the need for individuals and companies (foreigners) to undertake due diligence before undertaking to engage local Ghanaian entity or an individual for the purchase and export of gold. It is not only advisable to undertake due diligence on the local entities and individuals in Ghana but is imperative to avoid being scammed by unlicensed entities.

PRECIOUS MINERAL MARKETING COMPANY (PMMC)

Precious Minerals Marketing Company (PMMC) Ltd was established in 1963 as Ghana Diamond Marketing Board charged with the sole responsibility for the purchase and marketing of Ghana's diamonds. In 1965, by Legislative Instrument (LI) 401, the Company was incorporated as a State Owned Enterprise (SOE). With the promulgation of the Diamonds Decree (NRCD 32) in 1972, Legislative Instrument (L.I 916) was enacted to change the company's name to Diamond Marketing Corporation. However, in 1989, Precious Mineral Marketing Corporation Law (PNDC Law 219) was enacted to yet again change the Company's...