Mining boss calls for mineral royalties law

The acting chief executive of the Ghana Chamber of Mines, Ahmed Nantogmah, is demanding the passage of a law to regulate how mineral royalties are used at the local level, according to My Joy Online. He said that without such a legal framework, communities hosting mining operations would continue to suffer from underdevelopment despite the huge revenues they generate. He argued that while mining companies are often blamed for underdevelopment in mining communities, the real issue lies with the misuse of royalties by local authorities. 'There’s a broad argument that development is in the hands of the state. That’s true. But mining companies do a lot in their communities,' he said. Nantogmah questioned why assemblies receiving royalties still return to the companies asking for help with basic infrastructure. He noted that Gold Fields had constructed over 33km of road for one community, even though the funds to do that work were supposed to have already been provided through mineral royalties. ‘So that’s why we are also asking for a law,’ he said. ‘We know there’s one in the petroleum revenue management. Why can’t we do something for mining – for mineral revenue management?’ He proposed a mineral revenue law that would clearly define what royalties can be used for. ‘For instance, if the law stipulates that mineral royalties can be used only for health, education, and sanitation, then you are bound by law to use it for that,’ he said.

Full My Joy Online report