Ghana Reviews Minerals Royalty Framework: Dr Ashigbey Seeks Fair Share

• Ghana's mineral revenue regime is under review to strengthen its share of benefits from high commodity prices.
• A comprehensive Minerals Revenue Management Act is proposed to establish clear rules for mineral revenues at national and local levels.
• Mining companies are urged to prioritize safety in their operations, recognizing it as a moral and business imperative.

Ghana's mineral revenue regime is under scrutiny as the country seeks to strengthen its share of benefits from high commodity prices. The current framework has been criticized for failing to capture a fair share of the additional value generated during periods of high mineral prices, leaving investors with a disproportionate share. Dr Kenneth Ashigbey, CEO of the Ghana Chamber of Mines, has long advocated for reforms to address this imbalance. He believes that a modern and progressive royalty structure would ensure that both the state and investors benefit fairly during such times. This is not just about fairness; it's also about creating a competitive environment that attracts investment while maintaining a stable revenue stream for the government.

Dr Ashigbey has been vocal about the need for a comprehensive Minerals Revenue Management Act, which would establish clear rules for the collection, allocation, management, and utilization of mineral revenues at both national and local levels. Such legislation would bring much-needed transparency to the system, building trust between stakeholders and ensuring accountability. The windfall from high gold prices should be channeled into heritage funds for future generations and a stability fund, rather than being squandered on short-term gains. This approach would not only benefit the government but also contribute to the long-term sustainability of mining activities in Ghana.

The importance of safety in mining operations cannot be overstated, and Dr Ashigbey has emphasized this point repeatedly. He urged mining companies to prioritize safety above all else, recognizing that it is not only a moral obligation but also a business imperative. The consequences of neglecting safety protocols can be devastating, with lives lost and property damaged. By prioritizing safety, mining companies can build strong communities, ensure responsible mining practices, and contribute to the overall well-being of Ghana's people.

Lawyers and compliance officers should monitor the proposed reforms to the minerals royalty framework in Ghana, which aim to strengthen the country's mineral revenue regime and ensure fair sharing of benefits between the state and investors.

Source: Original reporting via AllAfrica Ghana