Osagyefo Amoatia Ofori Panin II, King of Akyem Abuakwa says that the country’s mining laws should be reviewed to ensure that the country takes full ownership of the mining industry so as to derive more benefit.

“There must be laws to ensure that the country takes ownership of the mining sector, if you don’t own your mining sector the domestic economy suffers, we must have the psychology of ownership of Ghanaian first,” he told B&FT in an exclusive interview in Accra.

He observed that the country had mined the mineral for over 100 years and yet the industry was not integrated into the national economy.

“The situation has arisen because the country lacks a national mining law that ensures that the country owns substantial part of the mining contract,” he said.

Meanwhile, a new mining policy to guide government in its management of the mining and minerals sector will be ready in 2012.

The policy document, soon to be presented to Cabinet for adoption, is currently at its draft stage and when fully operational will define the usage of the country’s mineral resources for national development.

The policy was initiated in 1999 and went through various stakeholder consultations and independent review in 2001, now reaching its current final draft stage.

Amoatia also bemoaned the five percent rate of royalties being paid by the mining companies.

“I am not happy with the rate of royalties being paid by the mining companies.

“You cannot have this anywhere, although the country invite foreign direct investment, we need to ensure that substantial part of the monies generated would remain in the country, ” he said.

Mineral royalties increased from GH¢1.9 million in 1990 to approximately GH¢90 million in 2009. The industry in 2009 also paid an amount of GH¢125 million as corporate tax while GH¢1.7 billion was collected by the Internal Revenue Service (IRS) from the sector.

Data from the Minerals Commission indicate that FDI in the mining sector increased from US$6 million in 1983 to US$427 million in 2007.

The sector had attracted nearly US$6 billion worth of FDI at the close of 2005, accounting for nearly 60 per cent of FDI flows to the national economy during the period.

Mineral revenue for the first quarter of 2010 stood at US$809.89 million - up from US$640.15 million for the same period in 2009.

Alhaji Collins Dauda, former Minister of Lands and Natural Resources in a recent statement said some draft regulations to ensure Ghana maximises the benefits from mining had been submitted to the Attorney Generals' Department for review.

He said the regulations when passed into law would give full meaning to the Mineral and Mining Act, 2006 (Act 703) and most concerns of the public regarding the sector would be addressed.

It would in addition, develop guidelines on the use of mineral royalties by metropolitan, municipal and district assemblies; compensation policy and regulations through open and accountable process and mine closure and post closure policy.