Chamber of Mines Disputes ‘20%’ Forex Repatriation Claim, Says Mining Sector Returns Majority of Export Proceeds

 

The Ghana Chamber of Mines has rejected claims that large-scale mining companies repatriate less than 20 per cent of their export proceeds to Ghana, describing the figure as “materially misleading” and incomplete.

In a statement issued on May 2, the Chamber said the widely circulated statistic—attributed to the Chief Executive Officer of the Ghana Gold Board—fails to account for the full scope of foreign exchange inflows generated by the mining sector.

According to the Chamber, the 20 per cent estimate is based solely on gold and foreign exchange sold directly to the Bank of Ghana, thereby capturing only one of the channels through which mining companies return export proceeds to the country.

The cited statistic reflects only transactions with the Bank of Ghana and excludes substantial inflows through the commercial banking system. Consequently, it significantly understates the large-scale sector’s contribution to Ghana’s foreign exchange position,” the Chamber stated.

The association explained that mining companies repatriate export earnings through two primary channels: direct sales to the central bank and transfers through commercial banks operating in Ghana.

It noted that a significant portion of export proceeds flows through commercial banks, where the funds are used to meet key domestic obligations, including the payment of royalties to government, electricity and fuel costs, and other services often denominated in foreign currency.

Additionally, the Chamber said some of the foreign exchange repatriated through commercial banks is converted into Ghana cedis to support local expenditures such as employee salaries, payments to contractors, and community development projects.

Based on industry data, approximately 70 per cent of mineral export proceeds from producing members is returned to Ghana through a combination of the central bank and commercial banking channels,” the statement emphasised.

The Chamber stressed that any accurate assessment of the mining sector’s contribution to Ghana’s foreign exchange position must consider both channels, rather than focusing exclusively on transactions with the central bank.

It further highlighted the importance of distinguishing between gross foreign exchange repatriation—the total inflows into the country—and net retention, which reflects funds remaining after external obligations are met.

According to the Chamber, gross repatriation is the appropriate metric for evaluating the sector’s economic contribution, in line with international balance-of-payments standards.

The statement also referenced previous policies by the Bank of Ghana, including requirements that mining firms grant the central bank a right of first refusal on foreign exchange intended for sale to commercial banks—an indication of the recognised role of the banking system in forex flows.

The Chamber has therefore called for greater transparency in reporting mineral export proceeds, urging authorities to publish detailed and disaggregated data covering both central bank and commercial bank channels.

Accurate measurement of forex flows is essential for sound policymaking, macroeconomic management, and sustaining confidence in Ghana’s mining sector,” the Chamber noted.

The response comes amid ongoing efforts to strengthen Ghana’s mineral export revenue framework and enhance foreign exchange inflows to support economic stability.