Let the axe fall regularly

Countries hope to see their mineral resources properly harnessed and the proceeds channelled into key sectors of their economies for sustainable development.

Although Ghana is rich in minerals such as gold, bauxite, diamond, manganese and iron ore, there are concerns about how it is losing out in terms of the returns on these natural resources.

Despite the fact that Ghana has many laws and regulations to safeguard the mining sector, all is not well, as there are frequent reports of foreign companies flouting the rules of engagement with impunity.

Already, we are battling to save the small-scale mining sector from invasion by foreigners, with the support of local collaborators.

To make matters worse, some mining companies that have acquired large concessions in many parts of the country are engaging in underhand dealings to milk the country dry.

From under-declaration of profits to the abuse of the local content law, they continue to engage in serious unpatriotic acts that result in Ghana suffering from revenue losses.

This situation deprives the state of the revenue inflow needed to undertake development projects such as schools, hospitals and roads.
 
It is in the light of this that the Daily Graphic finds the shutting down of the Ghana Manganese Company Limited (GMCL) located in Tarkwa in the Western Region for flouting the rules of engagement as welcoming news.

In announcing the decision to close the company yesterday, the Minister of Lands and Natural Resources, Mr Kwaku Asomah-Cheremeh, indicated that investigations into the operations of the company had revealed various infractions that had caused revenue losses of about $360 million to the state.

The investigations cited the company for defaulting in the payment of appropriate royalties, corporate taxes and dividends to the state.

While we commend the minister for taking this bold step to ensure that Ghana gets its share of mineral resources, we call for more of such steps across the mining spectrum of the country to send the strong message that the days when the firms decided to take the nation for granted are over.

 This is especially so when there are indications that many of the mining companies failed to declare dividends to the state in the past decade.

The Daily Graphic calls for a watertight enforcement and monitoring regime that will ensure that companies comply with their mining lease agreements.

We believe that when multinational companies come into the country to exploit mineral resources, there should be a win-win situation for both parties.

The Minerals and Mining Act, 2006 (Act 703) and the Minerals Commission Act, 1993 (Act 450) have clearly set out laws and regulations for the mining sector and it is important that these laws are enforced to ensure that the requirements for local content, the payment of royalties, corporate taxes, among other obligations, are adhered to.

It is important to note that mineral resources have a lifespan and we must be able to show something for them when they do go extinct.

If for nothing at all, we owe generations unborn the responsibility to manage the resources responsibly for them to also have something to live on.

The time, therefore, is now to take the bull by the horn to ensure that mining companies and others play by the rules, else posterity will judge the present generation unfavourably.