Wednesday, July 25, 2012

Minerals Development Fund law to boost infrastructure


The Minerals Development Fund Bill is expected to be passed by close of this year. 

When passed, it will allow for the establishment of a mining communities development scheme where proceeds from royalty payments and development funds of mining companies, as well as other relevant sources, would be paid into.

Currently, the drafted bill has gone through a number of stakeholder’s consultations and final inputs have been done. Parliament is yet to consider it for possible passage into law. 

Professor Bruce Banoeg-Yakubo, Chief Director at the Ministry of Mines, Lands and Natural Resources, said: “The funds mobilised from the various sources will be used by local mining community development committees exclusively for developing infrastructure projects in mining communities. 

“The bill also prescribed guidelines for rolling-out corporate social responsibility projects, set health and safety standards, tackle environmental issues and resolve issues relating to blasting activities of mining companies, among others.

“The government will also boost infrastructure such as roads and railway lines to help the industry contribute adequately to the country’s development,” Prof. Banoeg-Yakubo explained.

Chief Executive Officer of Minerals Commission, Ben Aryee, explained that the Fund has been in place since the 1980s and administratively approved by government. 

He explained that part of the royalty goes back to the community through the administrator of Stool Lands to support the assemblies, the chiefs and traditional council toward development of those local communities. 

“But the government wants a proper legal framework to govern the royalties in the country. Part of the royalties will be used to support some special projects in the mining sector, but a large part will be going to the community for development of those areas.”

Currently, royalties paid by the mining companies hover around 9%.  About 4.95% is meant for the Metropolitan, Municipal and District Assemblies (MMDAs); 2.25% for stool lands while 1.80% is for the Traditional Council. 

Mostly, the beneficiary communities are Wassa West, Adansi West, Bibiani Ahwianso Bekwai, Asutifi and Mpohor Wassa East.

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