Registering for a gold buying and export license is required for all persons interested in trading in gold in Ghana. Ghana is one of the most attractive business destinations in the West African sub-region. One of the mineral resources that is available to the nation is gold. In this article, we provide helpful guidelines on how to obtain a gold buying and export license.
How much gold does Ghana produce?
According to the Ghana Chamber of Mines in a published article; ‘2019 Mining Industry Statistics and Data ‘, Ghana maintained its position as the leading producer of gold in Africa and the eighth-largest producer in the world in 2019. Producing about three million ounces of gold in 2019.
Where in Ghana can you find gold to buy?
In Ghana, gold is mined by both companies and artisanal miners. Some of the largest gold mining companies in Ghana are Kinross Gold in Chirano mine, Newmont Goldcorp in Akyem and Ahafo mines, AngloGold Ashanti in Obuasi, Iduapriem mines, Gold Fields in the Tarkwa gold mine, and Asanko Gold in Asanko mine. These companies primarily export gold that is mined from their mining concessions. However, small-scale miners in the country mine and sell gold to entities and individuals. Some of the popular communities where you can buy gold include, Oda, Akyem, Tarkwa, Obuasi Prestea, Amansie, Kwabeng and Bibiani.
Who is responsible for the Issuance of gold export license?
The Government Agency that has the mandate and is responsible for the regulation and management of mineral resources in Ghana is the Minerals Commission. Hence, all applications for licensing for the trading and export of gold must be lodged with the Minerals Commission.
The minerals commission is mandated is to do the following:
- Coordinate and implement policies related to mining in Ghana
- Grant of licenses to corporate entities to undertake the business of mining, purchase and export of gold in Ghana.
Who qualifies for a gold export license?
Minerals and Mining (Amendment) Act, 2015 (Act 900) requires that only legal entities in Ghana that the Registrar Generals Department has duly registered can apply for a license which will enable them to export or sell minerals. There are Seventy-One (71) registered gold trading and export companies in Ghana.
See here also: How to register a Company Limited by Shares in Ghana
What is the validity period for a gold export licence?
Gold export license is valid for three (3) years subject to renewal for another three years upon expiry.
Procedure for obtaining a gold export license in Ghana
Step 1 – Purchase an application form
Purchase an application form from the Minerals Commission Office.
Step 2 – Complete the application form
Fill the forms with the right information to facilitate the process.
Step 3- Submission of application forms at the Minerals Commission
Submit a well-completed form to the Minerals Commission and attach the following documents ;
- Certificate of incorporation
- Company Constitution
- Form 3 and 4 from Registrar General
- Utility Bill
- CVs of key management
- Valid ID Card (Any of these: Voter ID, Driver’s License, Passport, National ID)
- Two (2) Passport Size Photo
- GRA registration documents
- Business Plan
Step 4 – Review of application
The Commission will review the application and all submitted documents. This process takes averagely 2 to 3 months. Once the applicant meets all the requirements, the Commission will issue an invoice for the license fee to be paid. After payment is done, the Commission will proceed to issue the license accordingly.
How long does it take for a gold export license to be issued?
The process takes two to three months. This is usually the case when applicants present all the documents the right way.
What are the fees involved in acquiring a gold export license?
Below are the applicable fees for acquiring a gold export license –
- Application form – $250
- Processing fee – $500
- License fee- $10,000
- Annual Fee- $2,000
Applicants may pay these fees in Ghana Cedi equivalent at the prevailing rate.
How to export gold from Ghana
The Minerals Commission has issued procedures that govern gold buying and export License in Ghana. The following procedures govern the exportation of gold by Licensed Gold Exporters (LGE) other than the holders of mining leases. These include the following-
- A Licensed Gold Exporter (LGE) who intends to export gold needs to 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.
- The LGE shall then submit the gold ore to be assayed by PMMC at a designated assay centre, together with all declaration documents, Packing List, and Invoice.
- 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.
- The PMMC shall then 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.
- The PMMC will proceed to 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.
- The GRA Customs Official at the Assay Centre has the responsibility to 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 authorized representative of the Assay Centre, who shall also affix the seal of the PMMC Assay Centre at the same time.
- The LGE shall complete the required documentation at the Kotoka International Airport (KIA) before exporting the assayed gold.
- 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.
- All LGEs shall submit monthly returns to the Minerals Commission in accordance with the terms and conditions of their license agreements.
Due Diligence when buying and exporting Gold
Private individuals and incorporated companies seeking to engage in gold buying and export license in Ghana need to understand that the sale and export of gold is a regulated business actvity. Sale and export of gold is governed by laws with an established institution mandated to ensure compliance.
There is, therefore, the need for individuals and companies (foreigners) to undertake due diligence before they engage a local Ghanaian entity or an individual for the purchase and export of gold. Dealers need to be careful to not get defrauded by unlicensed dealers.
Due diligence should also be conducted to identify all factors that will affect the potential transaction.
In any case, an individual or entity must conduct extensive research as is necessary to achieve a level of conviction before entering gold purchase and export transactions in Ghana.
I hope this has been helpful to you. Investors must follow the right procedure to trade and export in gold. Comment, like and share this content with a friend.