The Chamber of Petroleum Consumers does not think government’s gold-for-oil policy is sustainable.

COPEC in a statement said the policy has mandated the Precious Mineral Marketing Company (PMMC) to buy all gold from small-scale miners, community miners and a percentage from large-scale miners.

It further explained that although small-scale miners contribute about 34% of all gold produced and exported from the country, their output may not be able 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.”

It said in order to achieve the policy, Ghana would require a monthly purchase of about 205,000 ounces of gold locally.

It noted however 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.”

COPEC further alleged that no gold was purchased prior to the arrival of the first consignment under the policy.

“BOG rather depleted its gold reserves for the purchase of the 40,000 MT of diesel imported.”