ROLE OF PMMC IN TRADING AND EXPORT OF PRECIOUS METALS FROM

GHANA

Presented By: Mr George Abradu-Otoo

( Managing Director of PMMC)

28th September 2015

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BRIEF HISTORY OF PMMC The Growth of Precious Mineral Marketing Company

(PMMC)

• PMMC was established in 1963 as the Ghana Diamond Board with the responsibility for the purchase and marketing of the Ghana’s rough diamonds.

 • It later became the Diamond Marketing Corporation by the

diamonds Decree (NRCD 32) in 1972.

• It became Precious Minerals Marketing Corporation by PNDC Law 219 in 1989 following regularization the of small–scale gold mining operations in Ghana.

 • In 2000 it was converted by Act 461 (Statutory Corporations

Conversion to Companies Code) to a limited liability company wholly owned by the State to operate under the Ghana’s Companies Code (Act 179 of 1963) as Precious Minerals Marketing Company Limited.

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VISION & MISSION OF PMMC

VisionTo attain market leadership in purchase of goldfrom small-scale miners, diamond trading,jewellery manufacture, and sale of jewellery inGhana and provision of service to goldexporters.

MissionTo trade cost-effectively in gold and diamond

locally and internationally, efficiently produce quality jewellery through highly motivated staff to ensure customer satisfaction and enhance shareholders’ value.

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OUR SERVICES To achieve the vision and mission, PMMC is mandated to do

the following:

• Grade, assay, value and process precious minerals• Buy and sell precious minerals.

• Promote the development of precious minerals and the jewellery industry in Ghana.

• To appoint licensed buyers for the purchase of precious minerals produced by the small –scale miners;

• To ensure Kimberly certification for rough diamonds exports.

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ROLE OF PMMC (CONTD.)To Grade, Assay, Value & Process

precious Minerals• In implementing the above role, we at

PMMC ascertain the quality and purity of gold exports from Ghana thereby determining the actual value and the proceeds thereof that will come to government

• This meets one of the cardinal objectives for which the company was set by government

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ROLE OF PMMC (CONTD.)

To buy and sell precious minerals

• PMMC purchases gold from small-scale miners and diamond winners, and export abroad on behalf of the small-scale companies who are licenced with PMMC.

• PMMC already has an existing contract to sell its gold to an overseas gold refinery. However, applicants with favourable terms may be considered.

• Overseas buyers seeking to purchase gold from Ghana may contact other licenced gold buyers. However, any offers received from suppliers are to be confirmed with PMMC for advice on genuineness of transaction. 

• Overseas Buyers of gold are strictly advised NOT to pay cash directly to any local suppliers of gold upfront.

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ROLE OF PMMC (CONTD.)

For the purposes of classification, small-scale miners are artisanal miners who are licenced to operate on a small piece of land and who are required to market their produce through PMMC or designated agents affiliated to PMMC.

• Part of the gold purchased are used for jewellery production, and the remaining exported overseas.

• As a government policy, the company exports gold on behalf of third parties for a commission.

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ROLE OF PMMC (CONTD.) To Appoint Licenced Buyers for the Purchase of

Precious Minerals Produced by Small – Scale Miners• To facilitate the purchase of precious minerals produced by

licenced small-scale miners, PMMC engaged the services of buyers who go through registration process to execute their task. Licences are renewed yearly.

• The buyers in turn sell the gold to the Company at its Head Office in Accra or any of its branches. PMMC has thus succeeded in sending the market to the doorstep of the producer to minimize smuggling.

• This creates employment for the informal sector.

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ROLE OF PMMC (CONTD.) Promote the development of precious minerals & the

jewelry industry in Ghana

PMMC has 6 retail jewellery shops with 4 in Greater Accra and one each in Kumasi and Takoradi, and an online jewellery shop with over 400 jewellery items.

We handcraft our own jewellery at our Head Office production plant with all jewellery being 18K gold.

Our items include: wedding bands & rings, engagement rings, dress rings, jewellery sets, bracelets & bangles, necklaces & chains, earrings, cufflinks and we also custom make to order. Much of our jewellery have adinkra symbols each with a specific meaning. We have the largest selection in Ghana and we are your one-stop for all your gold jewellery needs.

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GOLD EXPORT PROCEDURE

• Gold for export must be delivered to PMMC laboratory accompanied by a letter, indicating the date of export, address of recipient and the Airline.

• The exporter is required to supply the full delivery details such as address and telephone number of the recipient overseas.

• PMMC issues assay invoice which indicates the weight and purity of the gold being exported.

• Completion of documents such as packing list, assay invoice, Bank of Ghana forms and Instruction of Despatch of Goods (IDG) forms.

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GOLD EXPORT PROCEDURE (contd.)

• Gold for export is sealed in metal boxes in the presence of the following:

I. Customs Division of the Ghana Revenue Authority;

II. PMMC Officials; andIII.The Exporter or his representative.

• PMMC conveys the goods in the bullet-proof bullion van with its security to Kotoka International Airport and hands it directly to the airline.

• Insurance and Airfreight charges are borne by the exporter or the overseas buyer.

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DIAMONDS BUSINESS

• PMMC is responsible for the marketing of rough diamonds produced in Ghana. The marketing system in operation is open to all prospective foreign companies desirous of purchasing Ghana diamonds. This is done in compliance with the KPCS (Kimberly Process Certificate Scheme). This is overseen by the KPCS secretariat in PMMC.

• Interested foreign companies are required to send applications indicating their intentions to purchase diamonds in Ghana for consideration.

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DIAMOND CUTTING & POLISHING

PMMC in 2012 set up a diamond cutting and polishing plant. It was meant to add value to the raw diamonds prior to export.

However, the factory’s operations have been halted since 2014.

Prospective investors may apply for a partnership in revamping the factory, we are looking for state-of-the-art machinery

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BENEFITS TO EXPORTERS & REFINERIES

UNPARALLELED SECURITY ESCORTFor the purposes of escorting gold to the airport for export, PMMC has its own in-house security team and armed Police personnel.

VAULTING PMMC has an enormous vaulting facility to

accommodate the bullion safety when there is any change in flight schedule.

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BENEFITS (contd.)

LOGISTICS• PMMC already has a customized armed

bullion vehicle to transport the gold to the airport.

• The vehicle is followed by a security detailed convoy as well. No incidence/disturbance recorded.

ADEQUATE INSURANCE COVER• PMMC has insurance cover for all bullion up

to the tarmac of the airport.

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BENEFITS (contd.)RELIABLE SOURCE OF PRODUCTPMMC is best recognized for its trusted source

of gold.

PROPER DOCUMENTATIONPMMC exports are well documented and

channeled through proper authorities required by law thus Bank Of Ghana export certification procedure and Ghana Revenue Authority( Customs division) for examinations.

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OPPORTUNITIES AVAILABLE

• Prospective investors can register, buy from & ship through PMMC

• Set up refinery to process gold (value addition)

• Direct investment in mining exploration leading to viable find, mine development and operation

• Look for Joint Venture Partnership with existing operator(s)

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END!!!

THANK YOU

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