Registry of mineral rights is fragmented – Nii Osah Mills

Minister for Lands and Natural Resources Nii Osah Mills says the current registry of mineral rights at the Minerals Commission is fragmented, with a reliance on hardcopy documents that pose a high risk to reliability in the administration of minerals right applications and active licences.

This, he explained, makes it difficult to structurally administer, monitor and report on the status of mineral right applications and licences systematically throughout their life-cycle.

Nii Mills observed that there are huge application processing delays which are presently lengthy and complicated, with the Minerals Commission facing challenges meeting their application processing deadlines as prescribed in the Minerals and Mining Licencing Regulations, 2012, (LI2176).

Commenting on tracking and monitoring minerals revenues, he indicated that the current system used by the Commission does not support tracking and monitoring expected annual mineral right fees.  “There is no available method of recognising or forecasting revenues due or in arrears across all licence-holders,” he said.

The Australian government, in view of this challenge, has advanced A$500,000 to the Minerals Commission for development of the Mineral Cadastre, expected to improve the effectiveness, accountability and compliance in the management of mining licences and royalties in the country.

Minister Mills and Australia’s High Commissioner to Ghana, Ms. Joanna Adamson, signed the Exchange of Letters on behalf of their respective countries. 

The two-year technical assistance project, which will derive efficient, automated and fully computerised mineral rights, will ultimately increase revenue base of the country.

It will also help to possess and effectively utilise a computerised administration process for managing the full life-cycle of mineral license and related payments, including monitoring for compliance in the management of mineral rights and related revenues.

Ghana was among the first countries in Africa to initiate Minerals Rights Cadastre in 1999.

Since then the country has relied on a semi-computerised mining cadastral system in the granting of mineral rights.

The Minerals Rights Cadastre system, when implemented, will address accuracy and transparency in issuing mineral licences.  Users have different access rights to the system. Some can update the data-base, while others can view only any information on a given licence -- such as owner, expiry date, shape, mineral resource and status of application, among others.

Nii Osah Mills, welcoming the Australian government’s support to the country’s mining sector, confirmed that the funding will pave the way for starting the project; and when the system is fully functional will enhance the country’s attractiveness as an investment destination for the mining sector.

“The funding will mark a significant beginning toward the process of changing the face of the Minerals Right Administration System from a semi-computerised to a modern and fully-fledged Geographical Information System based in the country.

“This project will assist the Minerals Commission to effectively deliver on its key mandate of regulation and management in utilisation of the country’s mineral resources and coordination of the policies related to minerals rights management.

“This project will help to increase efficiency and effectiveness in the issuing, tracking and general administration of mineral licences. 

“This is a high priority for the ministry. This assistance should also help address some of the current challenges with the management of small-scale mining licences in Ghana,” Nii Mills said.

Ms. Adamson said: “Ghana and Australia share many years of experience in the mining sector, so it is logical that we work together. We hope that this technical support from Australia will help Ghana enhance the management of its mining sector to achieve sustainable growth and wider socio-economic benefits for the Ghanaian people”. 

She explained that the technical assistance will be delivered by the Revenue Development Foundation (RDF), an experienced non-profit organisation with a track-record in raising revenue for governments of developing countries.

“The Australian support to Ghana in the mining sector is helping the country optimise the outcomes of mining to promote sustainable and equitable economic growth that will benefit the broader community. We are reminded every day of the mining sector’s importance to Ghana,” she remarked.