Prime News Ghana

Menzgold only authorized to buy and export gold - Licence reveals.

By Hagar Ofosua
Menzgold only Authorised to buy gold

A relevant section of the Licence Agreement between the Minerals Commission and Menzgold has revealed that Menzgold is only licensed to buy gold but from only small-scale miners and export it.

The section of the License reads,

 “The company [Menzbanc] is hereby authorized to purchase gold locally from any person holding a small-scale mining licence (“small-scale miner”) at the Company’s registered offices in Ghana and to export same in accordance with the terms of this Agreement.”

This implies the company can only buy gold but from only small-scale miners and export it.

Menzgold has for some time now being involved in lots of controversies. It has also emerged that the current operations of the Gold- dealership is a breach of the license granted it.

The company has since challenged claims with regards to its operations.

Read Alo: Licence of Menzgold has not been revoked-Lawyer challenges claims

 Minerals Commission had cautioned Menzgold against its persistent sale of gold.

Meanwhile, a letter dated September 19, 2017, indicates Menzgold Company Limited had been once cautioned against its persistent sale of gold. Details of the letter also indicate The Minerals Commission had also given the company it 10 days to correct its “misrepresentations” in the media concerning its operations and license.

This runs contrary to claims by the Gold-dealership that their activities are within the permits of the law.

In the letter, the Minerals Commission said its engagement with Menzgold over the matter showed the company was misapplying its license.

“Menzgold sought to interpret its right to buy and export gold as including the right to sell the gold locally as well as internationally. The Commission held that the License only entitled Menzgold to buy from authorized persons and to export same. The Commission further determined that if even the company seeks to sell the gold locally, it could only sell to persons who are licensed to buy gold. Therefore the company’s programme which involves the sale of gold to the general public (who do not have a license to buy gold) is inconsistent with its license.”

Read Also: Menzgold accuses BoG of orchestrated attempts to collapse local companies

Ghana News: Latest news in Ghana