Jul 18- 2022
FIRST OF ALL, NATURAL OR JURIDICAL PERSONS (COMPANIES) SEEKING TO ENGAGE IN
GOLD PURCHASE AND EXPORT FROM GHANA NEED 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 A 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 IT IS IMPERATIVE TO AVOID BEING SCAMMED BY UNLICENSED
ENTITIES.
PRECIOUS MINERAL MARKETING COMPANY (PMMC)
THE PRECIOUS MINERALS MARKETING COMPANY (PMMC) IS MANDATED BY LAW TO
PERFORM THE FOLLOWING FUNCTIONS:
1. TO GRADE, ASSAY, VALUE, AND PROCESS PRECIOUS MINERALS;
2. TO BUY AND SELL PRECIOUS MINERALS;
3. TO PERFORM ANY FUNCTIONS CONFERRED UPON IT BY THE DIAMOND DECREE, 1972
(N.R.C.D. 32);
4. TO APPOINT LICENSED BUYING AGENTS FOR THE PURCHASE OF PRECIOUS MINERALS
PRODUCED BY SMALL SCALE-MINERS;
5. TO PROMOTE THE DEVELOPMENT OF PRECIOUS MINERALS AND JEWELLERY INDUSTRY
IN GHANA; AND
6. TO DO ALL SUCH THINGS AS ARE INCIDENTAL OR CONDUCIVE TO THE ATTAINMENT
OF ITS OBJECTIVES AND FUNCTIONS.
THE COMPANY NOW OPERATES AS THE GOVERNMENT'S ASSAYER WITH THE SOLE MANDATE
OF ASSAYING ALL GOLD, WHICH LEAVES THE COUNTRY.
DUE DILIGENCE
PRIOR TO THE PURCHASE OF GOLD, DUE DILIGENCE SHOULD BE CONDUCTED TO;
1. ESTABLISH THAT THE INDIVIDUAL AND OR ENTITY (THAT IS THE LOCAL COMPANY)
THE FOREIGN ENTITY OR INDIVIDUAL INTENDS TO ENGAGE FOR GOLD PURCHASE AND
EXPORT IS LICENSED IN GHANA, AND
2. IDENTIFY ALL FACTORS THAT WILL AFFECT THE TRANSACTION.
BESIDES, PROSPECTIVE BUYERS OF GOLD SHOULD CONDUCT AS MUCH RESEARCH AS IS
NECESSARY TO ACHIEVE THE LEVEL OF COMFORT BEFORE ENTERING INTO GOLD
PURCHASE AND EXPORT TRANSACTIONS IN GHANA.
LICENSE TO BUY AND EXPORT GOLD
IT IS IMPERATIVE TO NOTE THAT, IN GHANA, AN INDIVIDUAL NEEDS A LICENSE TO
BUY AND DEAL WITH MINERALS. THEREFORE, THE EXPORT OF GOLD OUT OF THE
JURISDICTION OF GHANA CAN ONLY BE DONE UNDER A LICENSE BY AN ENTITY. THIS
IS REGULATED BY THE MINERALS AND MINING ACT, 2006 (ACT 703). IT PROVIDES
AMONG OTHERS THAT, THE MINISTER IN CONSULTATION WITH THE COMMISSION, MAY IN
WRITING LICENSE PERSONS THE MINISTER CONSIDERS FIT, TO BUY AND DEAL IN THE
TYPES AND FORMS OF MINERALS IDENTIFIED UNDER THE ACT.
IT SHOULD BE NOTED THAT, MINISTER UNDER THE ACT MEANS THE MINISTER
RESPONSIBLE FOR MINES AND NATURAL RESOURCES AND REFERENCE TO COMMISSION
MEANS THE MINERALS COMMISSION ESTABLISHED UNDER SECTION 1 OF THE MINERALS
COMMISSION ACT, 1993 (ACT 450).
GUIDELINES FOR THE EXPORT OF GOLD IN GHANA
THE MINERALS COMMISSION HAD ISSUED A DIRECTIVE AND OR PROCEDURES TO GOVERN
THE EXPORT OF GOLD FROM GHANA. THE FOLLOWING PROCEDURES SHALL GOVERN THE
EXPORTATION OF GOLD BY LICENSED GOLD EXPORTERS (LGE) OTHER THAN THE HOLDERS
OF MINING LEASES. THESE MEASURES ISSUED BY THE MINERALS COMMISSION SHALL BE
IN FORCE UNTIL SUBSTITUTED BY OTHER PROCEDURES THAT MAY SUBSEQUENTLY BE
PRESCRIBED. THESE INCLUDE THE FOLLOWING;
1. 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.
2. THE LGE SHALL SUBMIT THE GOLD ORE TO BE ASSAYED BY PMMC AT A DESIGNATED
ASSAY CENTRE, TOGETHER WITH ALL DECLARATION DOCUMENTS, PACKING LIST, AND
INVOICE.
3. THE PMMC SHALL DETERMINE THE GOLD CONTENT OF THE GOLD ORE PRESENTED BY
THE LGE USING THE APPROPRIATE ASSAY METHOD AS AGREED BY THE LGES, MINERALS
COMMISSION, AND THE PMMC.
4. THE PMMC SHALL PREPARE A REPORT OF ANALYSIS OF THE GOLD ORE PRESENTED BY
THE LGE AND ISSUE COPIES INSTANTLY TO THE BANK OF GHANA (BOG), THE GHANA
REVENUE AUTHORITY CUSTOM OFFICER STATIONED AT THE ASSAY CENTRE AND THE
MINERALS COMMISSION.
5. THE PMMC SHALL INVOICE THE LGE IN RESPECT OF THE ASSAY AT THE AGREED
RATE OF 0.1% OF THE VALUE OF GOLD ASSAYED, AND THE LGE SHALL PAY THE SAME
TO PMMC. THE PAYMENT OF THIS FEE IS WITHOUT PREJUDICE TO ANY FEE THAT MAY
BE CHARGED BY THE MINERALS COMMISSION.
6. ALL GOLD BUYING AGENTS OF THE PMMC, BEFORE THIS PUBLICATION, MAY
CONTINUE TO USE THEIR PERMITS UNTIL THE EXPIRY OF THE PRESENT TERM OF THE
LICENSE AND SAME SHALL NOT BE RENEWED BY THE PMMC UPON EXPIRY. ALL SUCH
GOLD BUYING AGENTS SHOULD IMMEDIATELY CONTACT THE MINERALS COMMISSION FOR
FURTHER DIRECTIONS REGARDING THE USE OF THEIR PERMITS. ALL PERSONS WHO
DESIRE TO OBTAIN PERMITS FOR BUYING GOLD SHALL APPLY TO THE MINERALS
COMMISSION.
7. 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 AUTHORISED
REPRESENTATIVE OF THE ASSAY CENTRE, WHO SHALL ALSO AFFIX THE SEAL OF THE
PMMC ASSAY CENTRE AT THE SAME TIME.
8. THE LGE SHALL COMPLETE THE REQUIRED DOCUMENTATION AT THE KOTOKA
INTERNATIONAL AIRPORT (KIA) BEFORE EXPORTING THE ASSAYED GOLD.
9. UNDER NO CONDITION SHALL GOLD ORE 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.
10. ALL LGE SHALL SUBMIT MONTHLY RETURNS TO THE MINERALS COMMISSION IN
ACCORDANCE WITH THE TERMS AND CONDITIONS OF THEIR LICENSE AGREEMENTS.
LOCAL LEGAL REPRESENTATIVE (LLR)
THE FOREIGN ENTITY SHOULD HAVE ACCESS TO LEGAL REPRESENTATION BEFORE
ENGAGING IN ANY GOLD EXPORT BUSINESS IN GHANA. NOT ONLY WILL THE LEGAL
REPRESENTATIVE CONDUCT DUE DILIGENCE ON THE LICENSED GOLD EXPORTER TO
ASCERTAIN THAT IT IS IN FACT LICENSED AND IN GOOD STANDING, HE/SHE WILL
ALSO BE EXPECTED TO EDUCATE AND OR PROFFER SOUND PROFESSIONAL ADVICE TO THE
FOREIGN ENTITY ON ANY CHANGES IN THE LAWS AND REGULATIONS GOVERNING THE
PURCHASE AND EXPORT OF GOLD IN GHANA.
MOST IMPORTANTLY, THE LEGAL REPRESENTATIVE SHALL POLICE THE PROCESSES
LEADING TO THE PURCHASE AND EXPORT OF THE GOLD TO ENSURE THAT THE PRECISE
OUNCES AND THE REQUIRED PURITY OF THE MINERAL ARE SHIPPED FROM THE REPUBLIC
TO ITS INTENDED RECIPIENT. THIS TIMELY LEGAL ADVICE MUST BE OBTAINED FROM A
LAWYER WITH KNOWLEDGE AND WORKING EXPERIENCE IN THE GOLD TRADING BUSINESS
IN GHANA.
THE LEGAL REPRESENTATIVE SHALL ALSO BE RESPONSIBLE FOR THE FORMULATION, AND
THE DRAFTING OF AN AGREEMENT TO GOVERN THE TRANSACTION BEFORE ANY TRANSFER
OF FUNDS SHALL BE EFFECTED FOR PAYMENTS. THIS EVENTUALLY WILL HELP TO
SECURE THE INTEREST OF THE PARTIES TO THE TRANSACTION AND ENSURE THAT THEIR
REASONABLE EXPECTATION IS MET AT THE END OF THE DAY.