The Chamber of Petroleum Consumers has stated that the government’s gold-for-oil policy is unsustainable.
According to a COPEC statement, the policy requires the Precious Mineral Marketing Company (PMMC) to buy all gold from small-scale miners, community miners, and a percentage from large-scale miners.
It stated that while small-scale miners contribute approximately 34% of all gold produced and exported from the country, their output may not be sufficient to sustain the policy.
“Other licensed buyers within the small-scale industry are funded by external investors and are required by contractual agreement to export their gold to these investors hence reducing the volume of gold to be purchased for the policy.”
In the view of COPEC, it would require the country the purchase about 205,000 ounces of gold locally every month to make the policy successful.
COPEC added that large-scale miners may not be able to supply to the PMMC because of their contractual arrangements with their external investors and creditors.
“From all indications, PMMC may not be able to accumulate as much gold as may be needed monthly for the policy to be sustained into the foreseeable future.”
“BOG rather depleted its gold reserves for the purchase of the 40,000 MT of diesel imported.”
By: Rainbowradioonline.com/Ghana
