Business News of Monday, 20 February 2017
The Ghana Chamber Mines has bemoaned the proportion of funds that is injected into mining communities for development.
According to the chamber, the phenomenon is the result of poor infrastructure development in mining communities, despite their contribution to the national income.
Speaking to Citi Business News, the president of the chamber, Mr. Kwame Addo-Kufuor described the situation as disappointing, since mining companies pay the right amount of revenue to government to help improve mining communities.
“In 2016, mining companies paid mineral royalty in the amount of GHS550 million to the government.[But]The proportion of the total mineral royalty which goes directly to the fourteen District Assemblies in whose jurisdiction mining takes place represents only 4.95 percent of mineral royalty payments,” he said.
“This implies that only GHS27 million is expected to be returned to district assemblies for development. This amount is woefully inadequate for the stimulation of infrastructural development in the mining communities,” he lamented.
Touching on recent pronouncements made by the Minister for Lands and Natural Resources, John Peter Amewu, Mr. Addo-Kufuor was optimistic government will soon increase the level of investment in mining communities.
“We are comforted by the Hon. Minister’s publicly stated commitment to increase the overall proportion of royalty revenue ploughed back to the mining communities to 20 percent from a gross 10 percent”.
“We are expectant that this will be translated into an increase in the share of revenue ceded to the communities and are willing to work with the ministry to implement this proposal,” he stressed.