Mining communities are set to benefit from proceeds of a Mining Community Development Scheme with the passage of the Mining Development Fund Bill.
The underdevelopment of most mining communities has been at the forefront of discussions concerning the mining industry.
A situation, some industry players have also attributed to the lack of effective implementation of the Mining Development Fund, established about thirteen years ago.
Parliament is almost through with a process of passing a bill later this week to ensure strict compliance.
Member of Parliament’s committee on Mines and Energy, Joseph Cudjoe, also tells Citi Business News the bill will streamline the allocation to various mining communities.
“The bill is seeking to streamline allocation to the mining areas; where mining operations have affected them. Also the institutional support that goes to mining regulation. At the moment this is proposing 50 percent to the office of the administration of stool lands, 20 percent to one another institution to 5 percent to the geological survey to enhance their capacity and 5 percent for projects that will enhance the communities and 20 percent to the mining community development scheme,” he said.
Proposals for Mineral Revenue Management Law
In a related development, the African Centre for Energy Policy (ACEP) has made a strong case calling for the passage of a mineral revenue management law.
According to ACEP, the management of mineral revenue in Ghana has not been as well organized as the country now has with oil revenues.
It cited some challenges including, commodity price volatility; use of mineral revenues for consumption rather than investments; absence of accountability of state institutions that have responsibilities for the management of mineral revenues, among others.
Executive Director of ACEP, Mohammed Amin Adam at a stakeholder’s forum to launch the proposal by ACEP observed, “Countries that have travelled the path of success such as Chile and Botswana in the fiscal management of mineral revenues even more provide useful answers to some of our most difficult questions,”
“We should consider the establishment of systems for assessing and collecting mineral revenues, establish stabilization mechanisms for insulating the economy from the effects of commodity price volatility; develop a central government and communities affected by mining, develop principles for applying mineral revenues to high impact public investment projects at the national and community level; and to develop principles for the transparent and accountable governance of mineral revenues, ” He stated.
By: Pius Amihere Eduku/citifmonline.com/