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Chamber of Mines to form Development Fund supervisory committee

mining

The Ghana Chamber of Mines is due to set up two committees to oversee effective implementation of the Mining Development Fund Law, a special fund to be created in and for mining communities.

One of the key structures is a governance board which will oversee how the monies are going to be utilized.

“When the royalties are returned from the consolidated fund to the special fund which will be set up at the community level, these will ensure that these monies are used judiciously for the benefits of the community, not some few people,” Chief Executive of the Chamber, Sulemana Konney told LUV FM.

Parliament passed the law last year to allow mining communities to effectively and efficiently utilise mining royalties.

However, officials are expectant that once the legislation is outdoored, they will speed up with these structures to enable the realisation of the benefits of the act.

Mining firms are worried the poor conditions in operational communities paint a bad image of an industry contributing hugely to national development.

According to Ghana Revenue Authority Report, 485.6 million Ghana Cedis was paid as mining royalties to the state in 2015.

Nine per cent of the amount, some of which has been in arrears for three years, goes to mining communities.

Records reveal over GH¢160,792,149 was ploughed back into mining districts between 2011 and 2015.

But there are questions as to whether there are manifestations of commensurate development.

Authorities in host communities often blame irregular disbursement for the ineffective utilization of royalty funds for development.

Sulemana Konney says the initiative has the potential to address the developmental imbalance in mining communities.

Meanwhile, the Chamber of Mines continues to advocate mining royalties be increased from 9 to 30 percent with future payment  tied to specific projects to inure to the benefit of the people within the community.

source; Ghana I Luv FM I Prince Appiah

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Reporting Oil and Gas project was launched on 4th June 2009atTakoradi, Western Region, Ghana by Penplusbytes (PPB – www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector
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