Introduction

Republic of ghana is endowed with arable natural resources, which have played a key part in the development efforts of the country. Republic of ghana has a long history of mining, especially for gold. Aureate is a precious metal of high monetary value, sought afterward for the product of coins, jewellery, and other artefacts. It is a fact, testify by records over the years, that gold is a major foreign commutation earner for Ghana's socio-economic development.

Over the years, Ghana's stable economic system and affluence of natural resource, particularly gold, have attracted many foreign entities and or individuals to develop strategic business partnerships with local Ghanaian companies for the export of these resources. A lot of these individuals have been cheated of their difficult-earned resources by unscrupulous entities masquerading as licensed gold ownership companies past regulators when in fact they have no such license. This commodity is therefore intended to throw calorie-free on the procedures and legislative framework established for the sale and export of gilded from Ghana.

It is important, following the in a higher place warning for foreigners, exist information technology individual individuals and incorporated companies seeking to engage in gold buy and export in Ghana to understand that this is a regulated industry. It is governed past 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 buy and consign of gold. It is non only advisable to undertake due diligence on the local entities and individuals in Ghana, but information technology is imperative to avoid being scammed by unlicensed entities.

Precious Mineral Marketing Company (PMMC)

Precious Minerals Marketing Company (PMMC) Ltd was established in 1963 equally Republic of ghana Diamond Marketing Lath charged with the sole responsibility for the purchase and marketing of Ghana's diamonds. In 1965, past Legislative Instrument (LI) 401, the Company was incorporated as a State-Owned Enterprise (SOE). With the promulgation of the Diamonds Prescript (NRCD 32) in 1972, the Legislative Instrument (50.I 916) was enacted to change the company'due south name to Diamond Marketing Corporation. However, in 1989, Precious Mineral Marketing Corporation Law (PNDC Constabulary 219) was enacted to yet again change the Visitor's name to the Precious Minerals Marketing Corporation with the following functions

  1. To form, analysis, value, and process precious minerals
  2. To buy and sell precious minerals
  3. To perform any functions conferred upon information technology by the Diamond Decree, 1972 (N.R.C.D. 32)
  4. To appoint licensed ownership agents for the purchase of precious minerals produced by pocket-sized scale-miners
  5. To promote the evolution of precious minerals and jewellery industry in Ghana
  6. To exercise all such things as are incidental or conducive to the attainment of its objectives and functions.

Finally, in the year 2000, it was converted by Statutory Corporations Conversion to Companies Act, 1993 (Act 461) to a Express Liability Company to operate under the Companies Human action, 1963 (Deed 179) as Precious Minerals Marketing Company Limited with the same functions under the PNDC Law 219.

The following have been the functions of the Company until 2016 when most of the functions inverse as a consequence of the engagement of PMMC equally the regime assayer.

  1. Grading, assaying, valuing, and processing of precious minerals.
  2. Buying and selling precious minerals
  3. Appointment of licensed buyers for the buy of precious minerals produced by small scale miners
  4. Production of jewellery
  5. To deport on trade and business organization whatsoever, which tin can, in the opinion of the directors, exist profitable ancillary for the general business of the Company.

The Company at present operates as the Government'due south assayer with the sole mandate of assaying all golden, which leaves the country.

Due Diligence

Due diligence should be conducted to;

  1. establish that the individual and or entity (that is the local visitor) the foreign entity or private intends to appoint for gold purchase and consign is licensed in Republic of ghana, and
  2. identify all factors that will affect the transaction.

In any case, whatsoever private or entity must institute its minimum level of comfort and must comport as much research as is necessary to achieve the level of condolement earlier entering into gilded purchase and export transactions in Ghana.

License to Buy and Consign Gold

It is imperative to notation that, in Ghana, an individual demand a license to buy and deal with minerals. Therefore, the consign of aureate out of the jurisdiction of Ghana tin can only be done under a license by an entity. This is regulated under the Minerals and Mining Deed, 2006 (Deed 703). It provides among others that, the Minister in consultation with the Committee, may in writing license persons the Minster considers fit, to buy and deal in the types and forms of minerals identified under the Deed.

It must be noted that, under the Act, mineral ways a substance in solid or liquid form that occurs naturally in or on the world and include gold and diamond but does non include petroleum resources equally the latter is nether a separate regulation. Information technology is important to annotation further that, Minister under the Human activity means the Minister responsible for Mines and Natural Resources and reference to Commission means the Minerals Committee established under department 1 of the Minerals Commission Act, 1993 (Human activity 450).

Guidelines for The Export of Gold in Ghana

The Minerals Commission had issued a directive and or procedures to govern the export of gilt from Republic of ghana. The following procedures shall govern the exportation of gold by Licensed Gilded 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 later on be prescribed. These include the following;

  1. A Licensed Gold Exporter (LGE) who intends to export golden shall inform the Precious Minerals Marketing Visitor Limited (PMMC) in writing of its consign plans at least two (2) working days before the planned weekly export.
  2. The LGE shall submit the golden 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 golden content of the gold ore presented past the LGE using the advisable assay method as agreed past the LGEs, Minerals Committee, and the PMMC.
  4. The PMMC shall prepare a report of assay of the gilt ore presented by the LGE and effect copies instantly to the Depository financial institution of Ghana (BOG), the Republic of ghana Revenue Authority Custom Officer stationed at the Analysis 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 aforementioned 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 keep to use their permits until the expiry of the present term of the license and aforementioned shall not exist renewed by the PMMC upon expiry. All such Gold Ownership Agents should immediately contact the Minerals Committee for further directions regarding the use of their permits. All persons who desire to obtain permits for buying gold shall utilise 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 Sectionalisation's seal and endorse the Customs Announcement Form. The sealing of the assayed gold ore by the Customs Official shall exist done in the presence of an authorized representative of the Assay Middle, who shall also braze the seal of the PMMC Analysis Centre at the same fourth dimension.
  8. The LGE shall consummate the required documentation at the Kotoka International Drome (KIA) before exporting the assayed gilded.
  9. Under no condition shall gold ore be exported past LGE without the seals of the Customs Division of the Ghana Revenue Say-so and the Regime designated laboratory, i.e., PMMC and accompanied with full documentation.
  10. All LGEs shall submit monthly returns to the Minerals Commission in accord with the terms and weather of their license agreements.

Local Legal Representative (LLR)

The foreign entity should have access to legal representation before engaging in any gold export business organization in Ghana. Not only will the legal representative conduct due diligence on the Licensed Aureate Exporter to define that it is in fact licensed and in good continuing, he/she volition as well exist expected to brainwash and or suggestion sound professional advice to the foreign entity on any changes in the laws and regulations governing the buy and export of gold in Republic of ghana.

Nigh importantly, the legal representative shall police the processes leading to the purchase and consign of the aureate to ensure that the precise ounces and the required purity of the mineral are shipped from the Democracy 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 whatsoever transfer of funds shall be effected for payments. This eventually will assistance to secure the interest of the parties to the transaction and ensure that their reasonable expectation is meet at the end of the twenty-four hour period.

The content of this commodity is intended to provide a full general guide to the subject thing. Specialist communication should be sought about your specific circumstances.