Local Contractors Accuse Ghana Manganese of Favouring Chinese

29-03-2019

Local Contractors Accuse Ghana Manganese of Favouring Chinese

Local mining service providers are accusing management of the Ghana Manganese Company of introducing bidding processes which favour Chinese service providers.

They are alleging that the Chinese, since taking over the company have stopped employing the services of all local contractors and are using their own Chinese companies who have no permits from the Minerals Commission.

The Manganese Company based in Tarkwa Nsuta in the Western region is currently seeking to expand its project in order to increase production capacity to 600 tonnes per hour.

Recently, the expansion project was awarded to a Chinese firm, Yantai Jinpeng Mining Machinery Company limited.

The company is subsequently seeking to work with another Chinese firm, GS International developers to do the project.

It is alleged that both Chinese firms do not have proper certification from the Minerals Commission.

On February 24, the Ministry of Lands and Natural Resources directed the management of the Ghana Manganese Company resume operations as work progressed on the outcome of an audit report.

The new directive followed an earlier order by the Minister last month for the company to halt operations to pave the way for a thorough audit.

In January 2019, the Ministry commissioned a team to audit the company for about six months. Sources indicated that the ministry had concerns over a lack of transparency from the company.

Some points of concern included the prices of manganese, the grade of ore and royalties expected to be paid to the state.

The audit was also meant to scrutinize compliance with local content laws and a loan agreement.

In July 2018, then-Minister of Lands and Natural Resources, John-Peter Amewu, indicated that the government was not going to renew the mining lease license of the company.

This was because of concerns the company was flouting its mining agreement.

The company had allegedly failed to involve the government in the pricing of manganese ore that was being sold to a firm in China.

 

Online source: https://www.ghanaweb.com/GhanaHomePage/business/Local-contractors-accuse-Ghana-Manganese-of-favoring-Chinese-733415

Offline source: B&FT Issue No 0855-1812 Tuesday, March 26, 2019, frontpage and page 3

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