MINING AREAS NEED STRATEGIC SPATIAL PLANS (PAGE 18, NOV 13, 2010)

THE Ghana Chamber of Mines has suggested to the Ministry of Local Government and Rural Development to develop strategic spatial plans for the mining areas.
The chamber noted that due to the absence of spatial, functional and development planning policies for mining areas, the mining industry was finding it difficult to act as a catalyst for turning the mining districts into centres of development or growth poles.
The Chief Executive Officer of the Ghana Chamber of Mines, Dr Joyce R. Aryee, made the suggestion during an interaction with the Western Region press corps in Takoradi.
She said the mining industry had experienced civil, social and environmental engineers who could assist in community development initiatives such as road building, construction and environmental management.
Dr Aryee also said the chamber believed that with the deliberate legislation, the country should in future, boast of prospering mining originated enclaves in the respective mining areas.
Touching on royalties, she said the chamber was advocating for 30 per cent of the royalties to be returned to mining areas and specific infrastructural projects in order to catalyse the socio-economic development of mining districts.
She noted that the Mineral Development Fund (MDF), which had been in existence since 1991 was meant to make available a portion of the mineral royalties to be used directly for the benefit of mining communities for research and other projects related to mining.
However, she said only 10 per cent of the mineral royalties paid by mining companies went into the MDF, while another nine per cent was paid to host communities, with the district assemblies getting 55 per cent, traditional councils 20 per cent and stools 25 per cent.
“The proportion of the total mineral revenue, which goes directly to the five district assemblies represent only 5.5 per cent of total mineral royalty payments”, she said, adding “This amount is woefully inadequate for the stimulation of infrastructural development in the mining communities”.
Dr Aryee said last year a total of GH¢1,873,106.00 was paid to traditional councils, while GH¢ 2,341,382.00 went to the stools with GH¢5,151,041.00 paid to metropolitan, municipal and district assemblies in the mining areas.
She said the mining sub-sector contributed about GH¢319 million to the Internal Revenue Service (IRS), representing 18 per cent of the total collections in 2009.
The mining sector, she added, also paid GH¢125 million in corporate tax to the IRS, representing 17 per cent of the total company tax collected in 2009.
According to Dr Aryee producing member companies returned about 76 per cent of the US$ 2.384 million mineral revenue to the country through the Bank of Ghana and the commercial banks in 2009.
She said this was an increase on the 63 per cent returned in 2008 and the aggregate average of 20 per cent companies were required to return to Ghana.
“The significantly high proportion of mineral revenue returned to the country underscored the extent to which the mining industry positively affected the local economy", she explained.
She said the industry deployed US$ 311 million of its fund for labour related costs and US$ 512 million on capital expenditure.
She said producing member companies also paid to the state, and voluntarily contributed to host communities and the general public a total amount of US$ 166 million.
Dr Aryee said the industry directly employed 12,294 people, out of which 98 per cent were Ghanaians and two per cent expatriates.
Touching on the railways, she noted that the state of the Western rail lines continued to affect the exploitation of bulk minerals such as manganese and bauxite.
“Bulk mineral producers are forced to haul ore from their respective mines (Nsuta and Awaso) to the Takoradi Port mainly by road because of the state of the rail”, she added.
She noted that the establishment of the Ghana Railways Development Authority offered hope for the efficient running of the country’s rail network, especially the Western rail lines.
Also, she said the government’s US$ 2 million package for the rehabilitation of the Western rail lines should help improve the logistical options of the bulk mineral producers.
She said the chamber would continue to integrate the industry into the local economy, champion the attraction of Ghanaian investors into mining and encourage government to mainstream mining as a growth pole for development.
She said the chamber would continue to pursue the quest for mining to be repositioned as a catalyst for development rather than as a source of revenue only.
She noted that opportunities abounded for the country to harness the potential linkages between the mining industry and secondary industries in the country.
Dr Aryee said the chamber would also continue to work with stakeholders to implement principles of collaborative decision-making and shared responsibility for the resolution of social, environment and development issues related to mining.