Ghana: Chamber of Mines Calls for Increase in Mineral Royalties

The Ghana Chamber of Mines on Wednesday called for an increase in mineral royalties paid to communities from the current nine per cent to 30 per cent to enable traditional authorities initiate more development projects.

The Chamber suggested that the royalties disbursed to the district assemblies should be invested in tangible projects that benefit the entire community.

Ms Joyce Aryee, Chief Executive Officer (CEO), Ghana Chamber of Mines, made the proposal at the opening of an international steering Committee workshop of the Extractive Industries Transparency Initiative (EITI) in Accra.

The workshop, organized by the Ghana EITI and jointly funded by the GTZ (German Technical Cooperation) and the World Bank Group took stock of EITI’s implementation process so far and to shape the future of the initiative in Ghana.

Ms Aryee said “the current nine per cent is too merger to allow any meaningful development project by the traditional authorities and, therefore, it must be increased.”

She stated that it was only proper that host communities of the nations minerals benefited equally from the fruits of their land and not neglected as was happening currently in some areas in the country.

Through a system of publication and verification of company payments and Government revenues from the mining industry, the EITI would ensure that Ghanaians benefited from better governance and responsible management in the mining sector.

This would help to ensure that extraction of natural resources played a key role in the economic growth rather than leading to poverty, corruption and conflict.

She said the institution of the EITI would ensure good governance, promote transparency and accountability in the extractive industry to ensure public confidence in the legitimacy of those who hold the minerals in their trust.

Ms Aryee said increased in transparency would also help to create the right climate for attracting foreign investment and encourage an enterprise culture since it reduced conflict in the industry.

“We believe that if resources from the mining industry are judiciously and prudently utilized, it will promote the country’s development as envisaged under the Growth and Poverty-Reduction Strategy (GPRS) II,” she said.

She said it was crucial that the elements of the initiative be complemented with the provisions of the Public Procurement Act as well as the Financial Administration Act, particularly at the District Assembly level.

This, she said, would ensure that the EITI served as a tool not only to promote transparency, but also as a means to promote socio-economic development and to reduce poverty at the districts.

Mr Anthony Akoto Osei, Deputy Minister of Finance and Economic Planning, said the EITI had been directed to ensure the publication of all revenue and receipts of mining companies to help to prevent corruption and build public trust.

He commended the Ghana Chamber of Mines for playing a pivotal role in the implementation of the EITI in Ghana and in their sensitisation programmes.

He said Ghana was currently the forerunner of the EITI initiative globally and was planning to change its legislation on revenue inflow of extractive companies to ensure total accountability.

Mr Akoto Osei said the Government was committed to strengthening accountability in all sectors of the economy to help to provide equal development and would collaborate with the EITI to ensure a successful implementation of the initiative.

Osahene Kwaku Aterkyi II, Omanhene of Kukuom in the Brong Ahafo Region, who represented the National House of Chiefs, affirmed the support and commitment of all traditional Chiefs to the EITI initiative.

He called for a proper flow of information and further supported the proposal of the Ghana Chamber of Mines to increase the royalties.

He said traditional authorities initiated about 80 per cent of village projects with the meagre 20 per cent royalty allocated to them and demanded that district assemblies be made to account for the 55 per cent royalty allocated to them to ensure transparency.

Osahene Aterkyi also complained about the late payment of royalties to traditional rulers and called on the Government to review the section 6 of Article 267 of the Constitution to ensure efficiency in payments.

Mr Kwame Pianim, an Economist, who chaired the opening, urged the steering committee not to focus too much on good governance and proper management alone, but to also put in place measures such as job creation, education and quality health care, to enhance the quality of life of the people.

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