Current mining royalties not enough – Chamber of Mines

The Ghana Chamber of Mines has called on the government to increase the mining royalties paid to mining communities,  from 10 per cent to 30 per cent to facilitate local development.

The government receives five per cent mineral royalties from every mining company and by law is mandated to channel 10 per cent of the amount to mining communities.

Out of the 10 per cent, the stool lands administration gets one per cent.

However, according to the Chamber, the current nine per cent is not enough to meet the increasing developmental needs of the mining communities and in most cases , the amount is not efficiently used leading to deprivation.

Mr Ahmed D. Natogmah, Director of Public Affairs and Environment for the Chamber, made the call during a media interaction in Koforidua.

According to him, the mining companies are up-to-date with their statutory obligations to the government, including income taxes and the five per cent royalty.

He said it is therefore disheartening to often hear community members, civil society organisations and most Ghanaians perceiving that mining companies are short-changing the nation and not paying anything at all to the State.

He explained that, by international convention, mining companies only support the development of the communities where they operate as part of their corporate social responsibilities.

Mr Natogmah entreated the media to explain such issues well to the understanding of the populace.

Soiurce: GNA