Govt moves to amend Minerals Development Fund Act

The government has initiated moves to amend the Minerals Development Fund (MDF) Act, 2016 (Act 912) and increase the mineral royalties allocation of the Ghana Geological Survey Authority (GGSA) from the current eight per cent to 13 per cent . 

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, who made this known to the Daily Graphic, said the move was to ensure that more resources were made available to the GGSA to deliver on its core mandate of geological investigations for the sustainable management of the country’s mineral resources.

The MDF, which was set up by Act 912 in 2016, receives 20 per cent of all mineral royalties paid by mining companies and allocates same to beneficiary institutions, including the GGSA.

Under the allocation formula, the GGSA receives eight per cent of the total receipts by MDF.

However, at the inauguration of the renovated administration block of the GGSA in Accra yesterday, the minister said a process had been initiated to increase the revenue allocation to the authority to facilitate its work. 

Govt commitment

Mr Jinapor said the inauguration of the renovated GGSA building was a demonstration of the government's commitment to resource agencies in the natural resources management sector for effective utilisation of mineral resources.

He said special attention would be given to the retooling of the GGSA to deliver on its mandate, especially as the country continued to explore the best way forward to deal with the illegal mining menace.

Mr Jinapor added that when the GGSA was well resourced to undertake more geological investigations for mineral-rich areas, it would cure the haphazard digging around by persons desperate to mine illegally.

The minister said apart from the building, the government would also ensure that the welfare of the workers of GGSA was improved.

Mandate boost

The Director-General of GGSA, Isaac Kuuwan Mwinbelle, described the inauguration of the renovated building as a major boost to the image of the authority.

"This is an edifice that befits the status of the GGSA and what we do," he said, adding that the new building was a morale booster for the staff of the authority.

Mr Mwinbelle said the renovation of the building, which coincided with the 110th anniversary celebration of the GGSA, would help the authority to deliver on its mandate.  

He called for GGSA to be more resourced to do more geological investigation and delineation of mineralised areas for responsible mining.

The GGSA Director-General said he would ensure that the environmental degradation associated with small-scale mining was eradicated.

Touching on the move to upscale the MDF allocation to the GGSA, he said, it would expand the resource envelope of the authority.

However, he said, the delay in the release of funds to the GGSA from the MDF was worrying as it hindered geological investigations.

Background

The GGSA operates under the new Ghana Geological Survey Authority Act 2016 (Act 928), which was enacted to replace the Survey Act, 1962 (Act 127).

The GGSA is mandated by Act 928 to advise, promote and research on geoscientific issues concerning mineral resources, groundwater, environment, geo-hazards and land use planning to support sustainable economic development in the country.

The core functions of the GGSA are mapping (geological, geophysical, geochemical, hydrogeological); mineral exploration, engineering and environmental geology, and seismic (earthquake) monitoring.