The Ghana Chamber of Mines says the country is not in any way shortchanged in terms of the distribution of mineral rents.
Their comment comes at the heels of a recent national debate over the mining lease for the Ewoyaa project for lithium exploration.
There have been concerns by the public and civil society groups over the government not demanding a larger proportion of the lithium deal as they believe the country.
But in a statement, the chambers described as “unfortunate” and “accurate” comments raised by some concerned people over the deal.
“The Chamber finds it unfortunate that some commentators have inaccurately portrayed the mining sector as shortchanging the country in terms of the distribution of mineral rents,” the statement read.
It says putting aside employment created in the sector to absorb local content and the purchases from local suppliers, more than proportionate share of mineral rents accrues to the government.
According to the chamber, a model by the Natural Resource Governance Institute (NRGI) suggests the profit-sharing ratio the country presently enjoys under mining rent is within the recommendable limit.
“the government’s share of mining rents is “just over 50%” which “falls comfortably within the 40% to 60%” profit-sharing ratio recommended by the International Monetary Fund (IMF) for mining countries,” it said.
While acknowledging some fiscal inflows from the sector are mixed with other taxes in the Consolidated Fund, the chamber says it has since advocated the adoption of fiscal payments similar to practices in the oil and gas sector.
It believes the locked-up inflows which blend with other funds is impeding the visibility of the developmental impact of the mining sector.
“the Chamber has been championing the plough-back of a commensurate portion of mineral revenue to host communities in a timely manner to complement the voluntary corporate social investment initiatives of its member companies to enhance socio-economic development,” the statement emphasized.
Although it appreciates the varied discourse ongoing about the lithium deal, the chamber is advising circumspection in making utterances.
The organisation wants conversations around the deal not to shy away private investment in the sector.
“The conflation of the views of the different stakeholders is expected to enhance the outcomes of the project without hurting the country’s ability to attract requisite private capital to develop mineral endowments responsibly,” the statement urged.
The Chamber lauded the Ministry of Lands and Natural Resources and Minerals Commission for their commitment to promoting constructive public discourse, inclusive development, and transparency.
“In the same vein, we commend the civil society community for their important contributions to seeking a fair share of the benefits associated with the development of lithium resources for the country,” the chamber commended.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
- President Commissions 36.5 Million Dollars Hospital In The Tain District
- You Will Not Go Free For Killing An Hard Working MP – Akufo-Addo To MP’s Killer
- I Will Lead You To Victory – Ato Forson Assures NDC Supporters
Visit Our Social Media for More
About Author
