Call for new law for mines

Vice-Chancellor of the University of Mines and Technology, Prof. Mireku-Gyimah, has called for speedy formulation of laws to define parameters for mining companies guidelines to carry out Corporate Social Responsibility (CSR).

“Until CSR becomes enforceable by law, I would like to suggest that every mining company deliberates with its Mine Local Community (MLC) to identify its needs, and then formulate policies and guidelines for the provision of the needs.

“The Minerals Commission should grant the mining lease for the project only when the properly estimated costs of mitigating the environmental degradation and managing the CSR have been included in the economic evaluation, and the project is still found to be profitable.”

Prof. Mireku-Gyimah made this known as part of inaugural lecture, as a member of the Academy of Arts and Science, in Accra on the topic: “To mine or not to mine – The Economic Controversy and its Resolution.”

He explained that CSR module has been used at the Ahafo Mine of Newmont Ghana Gold Limited (NGGL), and it appears to be working successfully.

“The fact is that beyond paying compensation for affected lands, farms and properties, every mining company, as part of its CSR, should provide support to improve the socio-economic life of the community.

“When the mining project starts, all institutions responsible for the enforcement of the laws and regulations on mining must ensure strict compliance with the rules and regulations,” Prof. Mireku-Gyimah stated.

He said: “Since the costs of mitigating the environmental degradation by mining and managing CSR are high, these costs must be properly estimated and included in the economic evaluation of any mining project before making a statement on the profitability of the project.

“If after this the evaluation shows the project to be viable, then we can answer the question of whether we mine the mineral or not.”

He advised that it is possible to mine in a way that does not damage the environment, for mining is very beneficial to the economy and the country. It provides employment and social benefits, foreign exchange and internal revenue, and raw materials for local industries.

The President of the Ghana Academy of Arts and Sciences, Prof Francis Allotey, said Ghana may be subsidising mining in the country because mining companies do not factor in the cost of destroying the environment and human lives when assessing the economic viability of mining.