Business News of Wednesday, 7 October 2015

Source: kasapafmonline.com

State must disclose how it uses mining revenues – Chamber of Mines

The Ghana Chamber of Mines says the current implementation of the Extractive Industry Transparency Initiative (EITI), a global standard for good governance in the sector, must be reviewed to also demand transparency on the utilization of mining resources at the national level.

Speaking in an address at the 1st ECOWAS Mining and Petroleum Forum and Exhibition (ECOMOF) which opened in Accra yesterday, the President of the Ghana Chamber of Mines Johan Ferreira said, "whiles the EITI demands transparency on fiscal receipts and payments, its utilization at the national level is rather limited.”

He therefore called on governments in the West African sub-region to urgently institute mechanisms that will make it mandatory for the state to account for how it uses revenues from the mining industry.

Ferreira has commended the Ministry of Lands and Natural Resources and the Minerals Commission for introducing the Minerals Development Fund Act, urging for a proper implementation of the Act to enable address the core challenges of host communities.

He underscored the need for the sector to commit to identifying ways the mining industry can continuously boost the economy of the country beyond the payment of taxes, royalties and levies.

He maintained that it will be difficult to optimize the full benefits of mining if there is lack of collaboration; partnerships among investors, governments, communities and civil society groups.

Ghana is hosting the first ECOWAS Mining and Petroleum Forum (ECOMOF 2015) in the capital Accra, from 6 – 8 October 2015.

The regional mining and petroleum forum is under the auspices of the ECOWAS Commission, and supported by the Government of the Republic of Ghana, and AME Trade Ltd.

The event is on the theme: ‘Valorising West Africa’s Mineral & Petroleum Resources through Regional Cooperation’.

The Authority of Heads of State and Government, at their 40th Ordinary Session held in Abuja, Nigeria from 16 to 17 February 2012, approved the organization of ECOMOF every two years.

The programme is to be rotated among Member States as part of the activities to promote and develop the mining and petroleum potentials in the ECOWAS region.