Grant large-scale mining concessions to Ghanaian investors - Asantehene advises govt

The Asantehene, Otumfuo Osei Tutu II, has urged the government to grant large-scale mining concessions to capable Ghanaian investors as it will be of benefit to the country.

“Ghanaian investors or companies must be prioritised first over foreign multinational firms in granting large-scale mining concessions as local ownership of mining concessions will greatly and positively impact the country’s economy,” he said.

While citing South Africa’s success story, he said: “If someone says Johannesburg in South Africa is well developed due to gold, such an assertion is true, but it was engineered by indigenous South Africans who owned the large-scale mining companies”.

For instance, the Asantehene mentioned that if the mining concession in Obuasi had been given to Ghanaian investors to raise the required funds to invest in the mine, it would have been of immense benefit to the area and the nation as a whole.

Further, he said it would have provided a unique opportunity to many professionals who had studied mining engineering and other related courses to be employed to contribute to the growth of the country’s mining sector.

Engagement

Otumfuo Osei Tutu II was speaking during the first meeting of the year of the Ashanti Regional House of Chiefs at Manhyia in Kumasi last Friday.

His comments were in response to earlier submissions by the Deputy Minister of Lands and Natural Resources, Yusif Sulemana, and the Chief Executive Officer (CEO) of the Mineral Commission, Martin Kwaku Ayisi, to the House.

The encounter formed part of ongoing stakeholder engagements by the ministry and the Minerals Commission to solicit views and inputs ahead of the review of Ghana’s Mineral and Mining Act, 2006 (ACT 703).

Survey, royalties

The Asantehene said Ghanaians must be granted licences to go into large-scale mining and that if they wished to partner foreign companies, they could decide to do so as such a move would result in such huge investments staying in the country.

“Western and Western North regions are endowed with gold and other mineral deposits, and can’t Ghanaians investors be granted large-scale concessions to invest in such areas to create jobs for the youth and the returns ploughed back to boost the economy?” he quizzed.

He, however, emphasised the need for the Geological Survey Department and the Minerals Commission to team up to undertake surveys to identify areas with mineral deposits.

“After this important activity has been carried out, it will make it easier for interested Ghanaian investors to be granted a licence and allocated concessions to engage in mining for the benefit of the nation,” the Asantehene said.

On the payment of royalties, he urged chiefs to take steps to push for the review of the aspect of the constitution that made chiefs land owners while mineral deposits on such lands are owned by the President.

“Fighting for equity in mineral resources for communities to benefit in perpetuity is more important than royalties that are paid,” he said.

Correct imbalances

Addressing the meeting, Mr Sulemana said the government was committed to ensuring that the review of the Act corrected the imbalances of the past and secured a brighter future for the benefit of all Ghanaians.

He stated that the current system often sidelined the very custodians of the land in decisions that affected their communities and that the review sought to change that towards the development of the country.

“We believe that no mineral right for small-scale, medium or large-scale mining should be granted without the full involvement and consultation with the traditional authorities,” he said and added that endorsement of chiefs would be a key requirement in the licensing process.

Licence regime

Mr Ayisi said the government, as part of the review of the Act, would not grant large-scale mining licences for more than 15 years. Similarly, prospecting licences would also not be granted in perpetuity again.

He said the current regime had made it very difficult for the commission to get concessions for small-scale miners, saying, “As a result, almost all the concessions of the large-scale firms have been invaded by small-scale miners”.

The Mineral Commission CEO added that after the review of the Act, all mining companies would be enjoined to sign community development agreements with communities within their operational areas to drive development.

 Writer’s email: gilbert.agbey@graphic.com.gh.