Minister lauds mining sector's contribution to economy

Ntotroso, May 30, GNA - Revenue from the country's mineral sector amounted to 2.5 billion dollars in 2007, Mrs. Rita Tani Iddi, Deputy Minister of Lands, Forestry and Mines, has said. She said the sector contributed about 5 percent of Gross Domestic Product, 17 percent of government revenue, 7 percent of Ghana's total corporate tax earnings and 41 percent of total export earnings. Mrs. Iddi said this at the signing of the Ahafo Social Responsibility Agreement of the 'Newmont Ahafo Development Foundation' between Newmont Ghana Gold Limited and communities within its operational area at Ntoroso in the Asutifi District on Thursday. The Fund, which has accumulated 857, 000 dollars, is set aside by Newmont for sustainable community development projects within its operational area.

The fund is a commitment made by the company in 2005 to set aside 1 dollar of every ounce of gold sold and one percent annual profit from the Ahafo mine. Mrs. Iddi said the country was endowed with substantial natural resources and had a well established mining sector that had grown considerably in recent years. She attributed this to the general liberal economic policies pursued by the government and the institution of comprehensive and attractive legal, fiscal and institutional framework for the mineral and mining sector.

The Deputy Minister said beside the exploitation of gold, diamond, bauxite and manganese, the country was also endowed with limestone, silica, clay and kaolin. Mrs. Iddi commended Newmont for the various alternative livelihood programmes that it had been put in place in the communities. She urged mining companies to work with national and local authorities to ensure that communities benefited from improved educational, medical and recreational facilities, improved transport infrastructure and rising standard of living. Mr. Jeff Huspeni, Regional Vice President, Africa operations of Newmont, noted with concern that mining companies had been blamed for the poor state of development in most mining communities. He said Newmont would remain committed to the sustainable development of its host communities through initiatives and also continue to set industry benchmarks for which the company had become noted for.

Mr. Joe Ghartey, Minister of Justice and Attorney General, said even though mining create wealth, employment and also served as the bedrock of the economy, it also displaced vulnerable and create extreme poverty among the people. He called on the management of Newmont to continue initiating programmes that would enhance the lot of the people within its catchments areas. Mr. J.H. Mensah, Chairman of the National Planning Commission who unveiled the logo of the Ahafo Development Foundation, appealed to the beneficiary communities to use the money judiciously more especially to promote education.