Nation needs to re-negotiate resource contracts

Vice President Kwesi Amissah-Arthur says the nation needs to re-negotiate some resource contracts to increase tax revenues and give the cocoa-, gold- and oil-exporting nation more fiscal space. 

 

“It is therefore necessary that we negotiate and in some cases renegotiate contracts to optimise revenues and to ensure fiscal space and responsiveness to windfalls, and develop systems to evaluate components of tax regimes for leakages, losses and tax avoidance and evasion. 

“The widely held view is that Ghana’s share of mineral revenues must increase; that we need to build capacity and enhance not only the skills of officials who negotiate fiscal issues, but to also effectively monitor compliance with taxation laws,” he said.

Vice President Amissah-Arthur told mining chieftains at Ghana Mining Summit 2013, a three-day event being organised by the Ghana Chamber of Mines for individuals, mining companies and stakeholders in the sector.

Speaking on the illegal Chinese operations in the small-scale mining sector, Mr. Amissah-Arthur disclosed that Chinese in Ghana are not the sole target of the ongoing crackdown on illegal small-scale miners in the country.

He explained that the action is against lawless nationals of various countries who use heavy-duty equipment in surface mining -- which has led to massive environmental degradation, water pollution and wanton destruction of farms which serve as source of livelihood for many Ghanaians.

“Let me seize this opportunity to set the record straight on our recent crackdown on illegal small-scale mining.”

Vice President Amissah-Arthur explained that the recent step by Government to crack down on the illegal small-scale activities of foreigners is, “because small-scale artisanal mining, by the laws of Ghana, is reserved for Ghanaians.

“What we have seen in the recent past is not only a flagrant disregard for our laws on small-scale artisanal mining, but the introduction of heavy-duty equipment in surface-mining by nationals of other countries.”

The Vice President explained that the legalisation of small-scale mining in 1989 was to ensure that Ghanaians in the informal sector benefit directly from extraction of the nation’s resources.

“Government was committed to creating a strong but fair regulatory framework for the mining industry that would ensure the right policies and regulations are put in place so mining could become a catalyst to national development.”

Dr. Toni Aubynn, Chief Executive Officer of the Chamber of Mines, indicated that Ghana should take its rightful place in the community of Mining regions in the world.

Speaking under the theme ‘Making mining the true catalyst for development--Thinking outside the box’, Dr. Aubynn explained the Chamber’s determination to stimulate a paradigm-shift in the mining industry, the way it has been perceived, and how to make the industry more meaningful to  all the stakeholders.

He said there is the challenge to seek new ideas, new solutions and to recognise the on-going strides and progress that the industry has made over the years, as well as challenges that confront it.

“We are being challenged to unlearn the old ways of perceiving the industry, which in most cases has changed and no longer matches with fact,” he said.