Rent on mining rights to be reviewed - Fiadzigbey

Obuasi (Ash), May 12, GNA - The Office of the Administrator of Stool Lands is collaborating with the Land Valuation Board and the Minerals Commission to review upwards land rent paid by mining companies to affected communities.

Mrs Matilda E. Fiadzigbey, Administrator of Stool Lands, who announced this, said the current economic realities are such that the annual rental charges of 2,000 cedis per square kilometre for reconnaissance and prospecting and 5,000 cedis per square kilometre for mining paid by mineral rights holders, are too low.

She was presenting a paper on "The functions of the Office of the Administrator of Stool Lands under the Constitution," at a public forum on mining, its environmental hazards and the sharing out of mineral royalties at Obuasi on Thursday.

Mrs Fiadzigbey said her office is concerned with ensuring that the stools get their fair and equitable share of revenue accruing from the operations of mining companies in the form of land rent and royalties. "Mining is an extractive industry, which degrades the environment and denies the people of their source of livelihood through the loss of land for agriculture. It is, therefore, expected that communities must enjoy the maximum benefits from such an industry".

She said the present system, under which 10 per cent of royalties is paid into the Consolidated Fund for disbursement, leads to delays in receipt and subsequently affects adversely, planning and execution of development projects. A Representative of the Director of Environmental Protection Agency (EPA), Mr Albert Boateng said the government in 1998 initiated action to ensure that mining does not destroy the ecology.

Mr Boateng, who was speaking on, "Effects of mining operations on the ecology, the environment and people in mining areas," said this led to the formulation and adoption of a National Environmental Policy. The policy aims at ensuring sound management of resources and the environment and to prevent any exploitation that might cause irreparable damage to the environment.

Mr Boateng said under the policy, mining companies are to complete and submit to EPA monthly returns to help it to monitor the effects of their operations. Nana Aboagye Agyeman II, Krontihene of Fomena and a Legal Practitioner asked chiefs to investigate the circumstances that led to the suspension of payment of royalties due them from 1986 to 1992, with a view to getting the outstanding amounts paid.

He called for a comprehensive law that would cater for mining activities, payment of royalties and the restoration of the land after mining. Paramount Chiefs of Adansi, Bekwai, Manso-Nkwanta and Adankranja and representatives of the various traditional councils attended the forum. Other participants were representatives from Adansi West, Adansi East, Amansie East and Amansie West District Assemblies, Members of Parliament from the area, officials from Ashanti Goldfields Company (AGC) and Heads of Decentralised Government Departments.