Comprehensive  Ghana Oil and Gas news, information, updates, analysis


News in Brief

Mineral royalty payment is not backed by law – Civil Society

The Chairman of the Civil Society Platform on Oil and Gas, Dr Steve Manteaw has proposed that the 10% royalty payment to mining communities must be scraped as it is not backed by law.

According to him, although the resources are put in specially designed funds for the host communities, equal distribution is not realized as citizens of most mining communities have several concerns on their livelihoods.

In an interview with Citi Business News, Dr Manteaw said agitations by some chiefs for percentages of natural resource revenues can be addressed when royalty payment are scrapped.

“The Payment of Royalties is not backed by law as it is borrowed by a constitutional provision in respect of stool land revenue, but mineral royalty is not stool land revenue and that is why I say the practice is not backed by law.”

Ghana’s Minerals Development Fund (MDF) was established in 1991 to make available a portion of mineral royalties to be used directly for the benefit of mining communities, for research and other projects related to mining.

In 2010, before its amendment, Ghana’s Minerals and Mining Law, Act 703, stated that mining companies are expected to pay royalties ranging from 3% to 6% on the revenue realized from the ounces of gold ore mined from the bowels of the country’s earth.

Although most mining communities currently receive 10% of mineral revenues from mining companies, the Chairman of the Civil Society Platform on Oil and Gas said the proper rationale of the royalty payment can be realized when it is backed by law.

Dr Manteaw noted that “it is only proper that it is backed by law and the basis are spelt out in law, then it will be seen to be applied evenly across board; we need to interrogate whether there are extra budgetary pressures on the districts in the western region as a result of mining exploration and production; and then see how we address them.”

 

Profile photo of Editor
Follow Us

Editor

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
Profile photo of Editor
Follow Us

Share this article

Leave a reply

Personality of the Month
  • Prof. Thomas Mba Akabzaa Chief Director of Ministry of Petroleum          …
Follow Us Online
Join the Discussions

Summary: Revenue mobilization from the oil sector for Agricultural production in Ghana, a myth or reality?

Agriculture, once considered the backbone of Ghana’s economy recorded a reduction of its contribution to GDP from 45% in 1992…

Responses Add your response


About Us
Reporting Oil and Gas project was launched on 4th June 2009 at Takoradi, Western Region, Ghana by Penplusbytes (www.penplusbytes.org) with the vision of providing a one stop online information and knowledge about Ghana’s oil and gas sector read more
Events Calendar
<< Aug 2017 >>
MTWTFSS
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3
Twitter Activity Stream
 

Partners We are proud to be associated with:

Skip to toolbar