TRANSPARENCY, PLEASE (MAY 27, 2010)

MINING has been one of the mainstays of the Ghanaian economy for many years and the sector provides employment for many Ghanaians.
While there is the potential for the country to reap bountifully from its mineral wealth, Ghanaians have had to rue what many believe is exploitation of the country’s mineral resources, to the detriment of the masses.
Indeed, many civil society organisations have been at the throat of mining companies demanding sound ethical practices, transparency and the protection of the environment as they pursue their mining activities.
In addition to the incidence of environmental degradation, many Ghanaians have also found reason to lament the level of poverty in mining communities.
It is quite ironical that despite the mineral wealth in many mining communities in the country, there is what has been described as the ‘resource curse’. The product of this ‘resource curse’ is a depressing state of deprivation that is sometimes compounded by very poor environmental conditions.
This has always served to fuel conflicts between mining companies and local people who are suspicious of the operations of the mining companies and, therefore, deeply resent them.
Many indigenes have accused mining companies of under-declaring revenue in order to pay low taxes on their operations and, although mining companies are quick to deny this, such accusations cannot just be dismissed.
In the light of this, the advice by the Minister of Lands and Natural Resources, Alhaji Collins Dauda, to mining companies to be transparent in the declaration of mineral wealth must not be taken lightly.
Addressing participants in the seventh West African Mining and Power Conference in Accra, the minister also noted that unless there was judicious and sustainable use of mining revenue, local communities could not truly benefit from their mineral wealth.
The DAILY GRAPHIC shares those sentiments expressed by the minister and believes that it is time to critically examine the mining industry to find effective solutions to the difficulties mining communities face.
Presently, it is estimated that the mining industry contributes only seven per cent of the country’s corporate tax earnings, 12 per cent of government revenue and 5.5 per cent of Gross Domestic Product (GDP). Additionally, 24,000 people are employed by the large-scale mining sector, comprising eight companies producing gold and one each producing bauxite and manganese.
One key question that has always been posed is: Is the country getting what is really due it from its mineral wealth?
Indeed, there are some who have argued that if the country cannot be guaranteed good value for its mineral wealth, then it is better to leave the minerals in the ground. This argument may sound logical when placed against the backdrop of endemic poverty and environmental degradation in mining communities, but the point really is that we need the mining firms, just as they also need us.
There is clearly the need for a dispassionate assessment of the impact of the mining sector on the growth of the Ghanaian economy and how best the country can optimise the gains from the sector.
The government must continue to press mining companies to be transparent in the declaration of mineral revenue to ensure that the country gets the best out of its mineral wealth.
The government has declared its intention to improve local content in the extractive industry and in this regard it is our hope that the mining sector will receive urgent attention to give indigenes a true sense of ownership of their mineral resources.