Ministry of Lands to ensure judicious use of mineral royalties

Obuasi, June 6, GNA - Alhaji Collins Dauda, Minister of Lands and Natural Resources, at the weekend, gave the assurance that mineral royalties allocated to the district assemblies, would be judiciously used for the development of mining communities. The sector Minister, who gave the assurance at Obuasi said mineral royalties are intended to improve the living conditions of communities where mining operations are taking place.

Alhaji Dauda expressed regret that the costs of some projects executed with these funds are ridiculous. The Minister who was answering questions from the press after an interaction with the Management and Staff of AngloGold Ashanti (Obuasi), said the Ministry, would make public the name of any district, which receive allocation of mineral royalties, to enable the beneficiary communities to know the quantum of funds received for development. This would be followed by proposals from the district assemblies, for the utilisation of the funds, to assist in the effective monitoring of projects.

"We are going to do all these to ensure transparency in the use of the mineral royalties," Alhaji Dauda said. He said the development of the mining communities could not be the sole responsibility of mining companies and expressed the need for the necessary mechanisms to ensure that such funds were used to supplement the development efforts.

On the payment of two to three per cent of gold revenue by mining companies to the government as royalties, the Minister hinted that a stakeholder meeting would be held to discuss the possibility of raising the amount to at least six per cent. "We want to get more revenue for the State," he said and called for the support of all so that, "we can maximise what we get from mineral royalties".

Alhaji Dauda said AngloGold Ashanti, was required by law to use one per cent of its profit to establish a trust fund for the development of Obuasi, stressing: "I am impressed about how they have delivered on this stability agreement."

"I am told the company has lodged an amount of 250,000 US dollars with the Obuasi branch of Standard Chartered Bank, for the trust fund and I am particularly touched about this arrangement," the Minister said.

He urged AngloGold to monitor the use of the money in order to bring about change in the development of Obuasi.