They have cautioned of possible concerns over the likelihood of a reduction in stake for major shareholders (dilution of ownership) of mining companies due to the new law.
“I think it is difficult to tell until we see the details but I believe that until it is implemented a bit of conversation around it…If you are not careful, there will be a dilution of ownership especially for those already in the country and have come under certain conditions,” the CEO of the Ghana Chamber of Mines, Sulemanu Koney told Citi Business News.
According to Mr. Koney, the companies currently operating in the mining sector are guided by regulations that consider their investments as FDIs hence must be given the fine details as the new regulation will have to fit into their business operations.
The government, as part of its local content development, is considering a regulation that enjoins companies operating in the energy, oil and gas, financial services, telecommunications, and mining sectors to list a minimum percentage of their shares on the Ghana Stock Exchange within 5 years of commencement of operations.
The move has since been lauded by some stakeholders in the investment industry.
The former Managing Director of the Securities and Exchange Commission, Dr. Adu Anane Antwi, for instance, believes multinationals to list will among other benefits help in addressing the perennial challenges associated with the depreciation of the cedi.
But speaking to Citi Business News on the matter, Mr. Sulemanu Koney further urged for clarity on the effect of the policy on existing and new entrants respectively.
“There is another category of businesses who knowing that this is a new government policy will consider that before developing their business models and that when they come, there wouldn’t be any issues around that,” he added.
Currently, two mining companies; Anglogold Ashanti Ghana Limited and Golden Star Resources are listed on the Ghana Stock Exchange.
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