CSOs call on Ghana gov’t to review Minerals and Mining Act

miningSome Civil Society Organizations (CSOs) have called on the Ghana government to as a matter of urgency review  the Minerals and Mining Act because the Act is disadvantageous to the country.

The Northern Patriots in Research and Advocacy (NORPRA), West Africa Coalition Against Mining (WACAM), Ibis Ghana and the Community Mining Advocacy Committee(C-MACs) said the Minerals and Mining Act 2006(Act 703) as it stands now provides incentives to mining investors and denies government the opportunity to accrue enough revenue from the mining sector.

The organisations made the suggestion at Tongo during a forum organised by NORPRA and sponsored by Ibis Ghana and Strengthening Transparency, Accountability,   Responsiveness in Ghana (STAR –Ghana).

They said mineral ore reserves in Ghana are about one trillion ounces with a face value of about $350 billion and had the potential of improving the economy if operations are conducted in a responsible manner.

They  cited for instance that in 2010 mining contributed only  6 per cent to GDP  and accounted  for about 49 per cent  of the country’s foreign exchange earnings  and that combined mining and the petroleum  sectors contributed only  8.7 per cent  to GDP in 2010.

This, they said, was inadequate and blamed the situation on the  generous incentives  government grants to mining investors  at the expense of the populace.

Mrs Hannah Owusu-Koranteng, the Associate Executive Director of WACAM who facilitated the forum, said incentives granted to the foreign mining companies only served to attract them to deplete the country’s mineral resources at a fast rate.

She said granting mining companies the right to transfer almost all earnings on minerals into offshore accounts was inappropriate and that it denies the country capital for economic growth and development.

“In a bid to ensure retention of capital in the country, it is proposed that the percentage of earnings that could be kept offshore should not be above 50 percent”, she said.

Source: GNA

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