Passage of mineral revenue management law advocated

The passage of a mineral revenue management law to guide the disbursement and utilisation of revenues in the mining sector has been advocated.

The Executive Director of the African Centre for Energy Policy (ACEP), Mr. Benjamin Boakye, said over the period the country had been mining there has been no framework to govern the receipts and expenditure of revenues, which needs urgent attention.

Mr. Boakye, making a call in Accra at the launch of a campaign for the proposal of a mineral revenue management law, said: “ACEP believes that the Mineral Revenue Management Law is crucial to guaranteeing more efficient management and use of revenues from the mining industry”.

He indicated that management of mineral revenue in the country has not been well organised as the country resorted to the administrative process of disbursing 10 percent of royalties to agencies and communities - adding that these processes are associated with challenges including commodity price volatility; use of mineral revenues for consumption rather than investments; absence of accountability at state institutions which have responsibility for the management of mineral revenues, among others.

He said the country is getting over GH¢1.5billion annually from the extraction of gold and other minerals, and as such it is imperative to institute effective mechanisms that ensure transparency and accountability.

“We should consider the establishment of systems for assessing and collecting mineral revenues and establish stabilisation mechanisms for insulating the economy from the effects of commodity price volatility,” he added.

The principle of revenue management, Mr. Boakye said, will protect macroeconomic stability, ensure fairness in the distribution of mineral wealth benefits, and sustain the fiscal contributions of mining after depletion.

Mr. Alhassan Iddrisu, Head of Programmes-ACEP, said legal frameworks of resource governance ensure that government’s action is well-coordinated in an efficient and effective manner for the benefit of all.

He stated that countries with mineral resources, when used well, will create greater prosperity for current and future generations; while when used poorly will can cause economic instability.