Obtaining a Gold Buying and Export License in Ghana: A Comprehensive Guide

Ghana is a prominent business destination in West Africa which boasts of abundant mineral resources, with gold being a major highlight. For individuals and companies interested in trading gold in Ghana, getting a gold buying and export license is a fundamental requirement. In this article, we will provide you with valuable guidelines on how to secure this crucial license, along with important insights on Ghana's gold production, eligible entities, the issuing authority, the application process, fees involved, and the necessary due diligence.

Ghana's Gold Production: A Global Leader

According to the Ghana Chamber of Mines, Ghana held its position as Africa's leading gold producer and the world's eighth-largest producer in 2019. With an impressive output of approximately three million ounces of gold in that year, Ghana's gold mining industry remains a significant contributor to the nation's economy.

Identifying Gold Sources in Ghana

Gold mining in Ghana is carried out by both established mining companies and artisanal miners. Some of the major gold mining companies in the country include Kinross Gold in Chirano mine, Newmont Goldcorp in Akyem and Ahafo mines, AngloGold Ashanti in Obuasi and Iduapriem mines, Gold Fields in the Tarkwa gold mine, and Asanko Gold in Asanko mine. These companies primarily export gold sourced from their mining concessions.

Additionally, small-scale miners in various communities, such as Oda, Akyem, Tarkwa, Obuasi, Prestea, Amansie, Kwabeng, and Bibiani, also mine and sell gold to entities and individuals.

Issuing Authority for Gold Export License

The Minerals Commission of Ghana is the government agency responsible for regulating and managing the country's mineral resources. If you intend to trade or export gold, you must submit your license application to the Minerals Commission.

Eligibility for a Gold Export License

The Minerals and Mining (Amendment) Act, 2015 (Act 900) stipulates that only legal entities duly registered with the Registrar Generals Department in Ghana are eligible to apply for a gold export license. At present, there are seventy-one registered gold trading and export companies in Ghana.

Validity Period of Gold Export License

Upon approval, a gold export license is valid for three years. However, it can be renewed for another three years upon expiry.

The Application Process for a Gold Export License

1. Purchase an Application Form: Begin by obtaining an application form from the Minerals Commission Office.
2. Complete the Application Form: Fill out the form accurately and provide all necessary information for a smooth process.
3. Submit the Application Forms: Present the well-completed application form to the Minerals Commission along with the following documents:
   • Certificate of incorporation
   • Company Constitution
   • Form 3 and 4 from Registrar General
   • Utility Bill
   • CVs of key management
   • Valid ID Card (Voter ID, Driver’s License, Passport, National ID)
   • Two (2) Passport Size Photos
   • GRA registration documents
   • Business Plan
4. Review of Application: The Minerals Commission will review the application and attached documents, a process that typically takes 2 to 3 months. If all requirements are met, an invoice for the license fee will be issued. Once the fee is paid, the license will be issued accordingly.

Processing Time and Fees for Gold Export License

The processing time for a gold export license is around two to three months when all required documents are provided correctly. The applicable fees for acquiring a gold export license are as follows:

• Application form: $250
• Processing fee: $500
• License fee: $10,000
• Annual Fee: $2,000

These fees can be paid in the Ghana Cedi equivalent at the prevailing exchange rate.

Gold Export Procedures for Licensed Exporters

For Licensed Gold Exporters (LGE), the following procedures are to be adhered to:

1. Informing PMMC: The LGE must inform the Precious Minerals Marketing Company Limited (PMMC) of their export plans at least two (2) working days before the planned weekly export.
2. Assaying Process: The LGE submits the gold ore to be assayed by PMMC at a designated assay centre, along with all declaration documents, Packing List, and Invoice.
3. Analysis and Reporting: PMMC determines the gold content and prepares a report of analysis, which is shared with the Bank of Ghana, Ghana Revenue Authority Customs Officers, and the Minerals Commission.
4. Invoicing and Sealing: PMMC invoices the LGE for the assay, and the LGE pays the fee. The assayed gold ore is sealed by the Customs Division of the Ghana Revenue Authority and the PMMC Assay Centre before export.

Due Diligence in Gold Buying and Export

Engaging in gold buying and export is a regulated business activity in Ghana. Both private individuals and incorporated companies must exercise due diligence before engaging local entities or individuals in gold transactions. This ensures compliance with the established laws and regulations and minimizes the risk of dealing with unlicensed dealers.

Conclusion

Getting a gold buying and export license in Ghana is a crucial step for those interested in trading in this precious metal. By following the proper procedures, meeting eligibility requirements, and conducting due diligence, investors can take part in this thriving industry responsibly and contribute to Ghana's economic growth. Remember to adhere to all regulations and guidelines set by the Minerals Commission to make your gold trading journey successful and compliant. If you found this guide helpful, share it with others who might benefit from it.