The Ghana Mineworkers’ Union (GMWU) of the Ghana Trades Union Congress (TUC) has called for drastic changes in the current sharing model of the country’s mineral royalties.
This is to address the gaps in infrastructural development of mining communities.
It said a breakdown showed that, in essence, government made only one per cent of the mineral revenue in 2020 available under its current arrangement for the development of the communities affected by mining operations.
“This is woefully inadequate and, therefore, unacceptable. To make matters worse, the Ghana Revenue Authority (GRA), GRA and by extension the Ministry of Finance has not only consistently delayed the release of the Mineral Development Fund (MDF) contribution, but also reduced the quantum because of the application of the Earmarked Funds Capping and Realignment Act 2017 (Act 947),” the General Secretary (GS) of GMWU , Mr Abdul-Moomin Gbana, said this in a speech read on his behalf by the Deputy GS, Mr Jerry Andoh, during the union’s national executive council (NEC) meeting held at Tarkwa in the Western Region, from August 19-20, 2021.
In a media release issued by the union, Mr Andoh explained that for the year 2020, producing mining companies paid a total of about GH¢1.4 billion in mineral royalties to the Ghana Revenue Authority (GRA), and pursuant to Section 3 (a) of the Mineral Development Fund (MDF) 2016 (Act 912), 20 per cent (GH¢278 million) of the amount was expected to go to the MDF.
He said MDF also gave 20 per cent (GH¢56 million) of its share to the Mining Community Development Scheme (MCDS) set up under it for mining community development, and the rest went to the Office of the Administrator of Stool Lands (50 per cent), Minerals Commission (13 per cent), Geological Survey Authority (eight per cent), Research (five per cent) and Ministry of Lands and Natural Resources (four per cent.
“Consequently, we renew our call for the current 20 per cent share of annual mineral royalties allocated to the MDF to be increased to at least 50 per cent. In addition, we expect that 50 per cent of the revised 50 per cent allocation to the MDF must go directly into mining community development if, indeed, we are committed to the transformation of mining communities as was envisioned in the MDF Act”, he said.
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Mr Andoh said unlike […]