Mineral Development Fund Law in offing

Accra, June 9, GNA - A draft bill on the Mineral Development Fund (MDF) established 14 years ago has been prepared for Cabinet=92s consideration to give it a legal status and to better manage it for beneficiaries.

Professor Dominic Fobih, Minister of Lands, Forestry and Mines, who announced this on Friday, said the Bill included a provision for the establishment of the Community Development Scheme for mining communities.

The Scheme, he said, would serve as a source of funding for development projects in mining communities with contributions from MDF, the District Assemblies and the mining companies in the districts. Speaking at the 78th Annual General Meeting of the Chamber of Mines, Prof Fobih said the management of the scheme would be at the community level with the involvement of representatives from the mining companies as well as the district assemblies.

On royalties, the Minister agreed with the Chamber that the current 10 per cent given by the mining companies should be increased since it was inadequate for any meaningful development.

He lauded the mining companies=92 idea to include bamboo cultivation and processing as part of their alternative livelihood projects saying; "in this era where there is growing concern about the depletion of our forest the initiative of this kind is welcome". Prof Fobih said the Government had done a lot to integrate the concept of sustainable development in mining so as to alleviate poverty and create wealth within mining communities.

He mentioned the recent passage of the Mineral and Mining Act and said Government through the Act had instituted a more liberal form of mineral rights administration.

The Minister noted that mining still remained one of Ghana's most important foreign exchange earners contributing approximately 33 per cent of total exports, 11 per cent of Government revenue, five per cent of GDP and seven per cent of corporate tax earnings.

Mr Jurgen Eijgendaal, the Chamber=92s new President and Chairman of the Council, said the mining industry in Ghana was alive to its responsibilities as a producing corporate citizen and to the needs of the nation as well as host communities.

"This is not hollow phrase, but is actively being practised. This is witnessed by the various corporate social responsibly activities of members of the Chamber of Mines."

Mr Eijgendaal said in order to minimize the social conflicts associated with mining, which were often fanned by other extraneous factors, it was necessary to actively involve the local inhabitants, be sensitive to the tradition and culture of the people and develop the communities into understanding the dynamics of modern mining.