Mining Sector Records Increment for 2015
The mining sector contributed an amount of GHC 1,285 million to Government revenue in 2015 as against GHC1,193 million in 2014, the Ghana Extractive Industries Transparency Initiative (GHEITI) 2015 report has revealed.
This represents an increase of 7.79 per cent in 2015, over the previous year’s figure.
Of the total earning from the mineral exports in the 2015, gold accounted for 96.68 per cent, bauxite contributed 1.24 per cent, diamond accounted for 0.31 per cent and Manganese contributed 1.95 per cent, the report noted.
Gold remained the leading mineral in revenue.
The 2015 GHEITI Mining report, launched together with that of the 2015 Oil and Gas Sector report, in Accra on Wednesday, however, revealed that earnings from the minerals exported in 2015 decreased by 26.43 per cent.
Commenting on the mining report, Dr Amin Adam, Deputy Minister for Energy said there was the need for subsequent reports to factor the impact of the utilisation of revenue generated from the extractives sector on the economic transformation of the people.
He said that was needed for the people and other stakeholders to appreciate how the revenue from the extractive sector were spent and said the government would soon start the process of instituting a discussion on making a legislation to back the operations of GHEITI report.
Messrs Boas & Associates, were engaged to produce the GHEITI report on Mining sector payments and receipts covering January to December 2015, on behalf of the Ministry of Finance.
The two reports which should have been launched in 2017 were delayed due to the change in government as happened elsewhere, and the fact that the new government needed time to study and understand the issues better before committing to it.
Mr Kwaku Kwarteng, a Deputy Minister of Finance, who launched the reports, said the Extractive Industries Transparency Initiative (EITI) reports were the hallmark of the EITI implementation process.
He indicated that the delay for the early release of the 2015 report was also due to delay in the release of funds by one of the donor partners, pushing Ghana to request for an extension of time for the submission of the EITI reports and validation.
Mr Kwarteng said the EITI Board subsequently gave approval to Ghana to publish the 2015 EITI reports in May, this year and also undergo its next validation which would focus on corrective measures identified in Ghana’s 2016 validation in September this year.
He emphasised the need for a more transparent and prudent management of revenues from “these strategic sectors.
He added that there was the need to ensure that “our natural resources revenue data were widely available to empower the public to hold both companies and government accountable”.
Presenting the highlights of the reports, Mr Kwaku Boa-Amponsem, a Managing Partner of Messrs Boas & Associates, mentioned a recommendation of the report, stating that the Office of the Administration of Stool Lands should endeavour to pay royalty receipts to District Assemblies, as quickly as possible as it would provide the necessary confidence for the District Assemblies to use the funds for development projects.
He said, there was the need for the government to review the policy of acquiring a non-contributory shareholding in all mining enterprises, if the purpose for instituting that measure was to earn extra income.
The EITI is the global community’s boldest response to the under development, conflict, and deprivation which had become characteristics of natural resource dependent countries.
Its mission was to promote transparency and accountability in the generation and use of extractive sector revenues and it was premised on the belief that implementation would lead to policy reforms and improvement in the impact of extractive revenue on national development.