‘Transparency in the mineral sector must reflect natural resources laws’

The Chairman of Mines and Energy Committee of Parliament, Dr Kwabena Donkor, has noted that the achievement of greater transparency in the mineral sector must reflect the respect of the natural and mineral resources laws.

Addressing a day’s sensitisation and dissemination workshop of the Ghana Extractive Industries Transparency Initiative (GHEITI) at Elmina in the Central Region, he expressed concern that some foreign miners are operating in the country without license.

The workshop which was organised by GHEITI and the National Steering Committee was sponsored by the German development agency –GIZ and was attended by the Parliamentary Select Committee members of Mines, Energy, Finance and Public Accounts, to enable them get informed on the activities of Extractive Industries Transparency Initiative (EITI) and how they influence national and international affairs.

EITI- a global coalition of governments, extractive companies and civil society organisations, working together to improve openness and accountable management of revenues from natural resources, was established in 2002 with Ghana as one of the early members to sign onto the initiative.

It also ensures transparency in how a country’s natural resources are governed.

According to Dr Donkor, it is about time that the nation began to add value to its natural resources, explaining that for the past 100 years the country had exported raw gold.

He said about 20 per cent of the nation’s cocoa is semi processed, which is not helping the manufacturing industries to grow to create more job avenues.

Meanwhile, Minister of Lands and Natural Resources Alhaji Inusah Fuseini, in a speech read on his behalf, underscored the immense contribution of the mining sector to revenue and the economy.

He said in 2012 the sector contributed 27 per cent of the nation’s total revenue- 42 per cent of total merchandise exports and six per cent of Gross Domestic Product.

Alhaji Fuseini also said for the first time in many decades corporate tax receipts exceeded royalty payments in 2011 while large scale mining and the mine support service sub-sector employed about 27,000 people with an estimated one million people engaged in the small-scale production of gold, diamonds, sand winning, quarry and salt industries.

He said total foreign direct investment into the mining sector from 1983 to 2012 amounted to 12.5 billion dollars.

Alhaji Fuseini indicated transparent, equitable and optimal exploitation of mineral resources are expected to underpin a broad based sustainable growth and socio-economic development of the country.

The Chief Director of the Ministry of Finance and Chairman of EITI, Major Mahama Samuel Tara (Rtd), said the initiative has enormous potential for improving the development outcomes from the management and utilisation of extractive sector revenue.

He revealed the EITI has also helped to erase the mistrust and tension that has often characterised the relationship between the key stakeholders in the extractive sector.

He explained that to facilitate EITI reporting as well as to institutionalise the Initiative, it was imperative for the nation to give its full support.