MIIF intensifies royalties collections — Begins nationwide tour of quarry, salt mines
In its quest to increase royalty receipts from mining companies operating across the country, the Minerals Income Investment Fund (MIIF or the Fund) has intensified its monitoring efforts to ensure players in the industry honour their obligations to the state.
The exercise, being carried out by the Business Development team of the Fund, is also meant to identify new entrants into the industry as part of efforts to update the list of companies eligible to pay royalties.
It is also designed to assess compliance with statutory royalty payments and to gain firsthand insights into the challenges confronting operators in the sector.
A release issued by the Fund said under Ghana's current legal framework, mining companies were required to pay five per cent of their total revenues as royalties to the state, with these payments forming a critical component of the country's mineral revenue stream.
It said the ongoing monitoring tour began with visits to quarry and salt mining sites in the Greater Accra and Eastern Regions of Ghana.
“The team covered all quarry sites in Nsawam, Suhum, and Shai Hills. The team also visited salt mines in the Ada enclave, including Electrochem Salt and Dangbe Salt, among others.
During the tour, two emerging salt mines were identified, one of which is scheduled to commence production and sales in the next season,” it said.
Compliance monitoring
According to the release, the tour offered the team the opportunity to extensively review records pertaining to royalty payments.
It stressed the importance of full compliance to ensure the state derives its due share from mineral resources.
Encroachment
It revealed that some of the operators expressed concerns about increasing encroachment by nearby communities who were undertaking residential developments just meters from concession boundaries.
Way forward
In his remarks, the Head of Business Development, Dr Kennedy Abrokwa, said the industrial mineral sub-sector, encompassing quarries, salt, and related minerals, held significant untapped potential for Ghana’s economy.
He said while the Fund has made strides in monitoring and compliance, there was more room for improvement, therefore efforts would be intensified to achieve its objectives in the best interest of the state.
Dr Abrokwa explained that MIIF’s efforts, including the nationwide tour, underscored the Fund’s commitment to closing the royalties payment gap.
“By strengthening compliance, identifying new entrants, and addressing systemic challenges, we aim to unlock greater value for the nation.
The road ahead requires collaboration with stakeholders to ensure that Ghana derives its rightful share from these vital resources, fostering sustainable growth for the benefit of all citizens” he added.