GH180 million to government last year by Mining companies

Sunyani, May 7, GNA - The mining industry paid GHC 179,978,383 representing 14 percent of total revenue collection, as royalty to the government in 2008.

Miss Joyce R. Aryee, Chief Executive Officer of the Ghana Chamber of Mines, who disclosed this, said irrespective of the profitability of a mine, three percent of its gross revenues are paid to the state. She was interacting with media practitioners in Sunyani on Wednesday as part of a working visit to mining companies in the country. The objectives of the interaction among other things were to enhance positive public perception of the mining industry and to educate the public on the Chamber's role in the mining industry.

Miss Aryee explained that the gross revenue of mining companies increased as a result of the healthy price of gold, increasing the quantum of money that the companies paid to the government. On the allocation of mineral revenue for 2008, the CEO said the mining industry returned a total of 63 percent of mineral revenue to Ghana, out of which six percent was paid to the government at the national and district levels in the form of royalties. Miss Aryee said 10 percent was paid to the Volta River Authority and Electricity Company of Ghana for electric power purchased and 13 percent was paid to Shell and Total fuel companies for diesel fuel purchased.

In addition to the cost of fuel, mining companies paid about GHC 73 million (three percent of mineral revenue) as taxes, levies and duties to the government as well as margins to oil marketing companies, she said.

Miss Aryee explained that the Chamber does not condone illegal mining and its related activities and "does not aid any persons related to this act", adding that, the Chamber, however, supported licensed small-scale mining.

She explained that under the auspices of the Chamber, the mining industry continued to actively pursue proactive strategic relationships with its major stakeholders with the purpose of creating the right basis for addressing key issues relating to the role of mining in national development.

The CEO used the occasion to launch the 81st Annual General Meeting of the Chamber, which is under the theme, "Mining and Sustainable Development: Meeting Inter-generational Challenges", scheduled for May 29, in Accra.

As part of the meeting, an exhibition will be held from August 26-28 as well as other activities including a public lecture on the theme and an essay writing competition. Giving a brief history, Miss Aryee said the Chamber was started as West African Chamber of Mines in 1903 but in June 1927, the Gold Coast Chamber of Mines was incorporated as a private company and operated from Tarkwa in the Western region. After Ghana's independence, the name was changed to Ghana Chamber of Mines and was converted under the companies code 1963 (Act 179) into a company that is limited by guarantee. 7 May 09