Prof Buah: Ghana’s Mining Coys Committed to Responsible Mining Practices     

Ghana Mining & Energy Summit 2017

Accra, Ghana, November 25, 2018//-Prof William K. Buah, the Dean of School of Postgraduate Studies of the University of Mines and Technology, Tarkwa, Ghana says mining companies operating in the country are committed to responsible and sustainable mining practices.

According to him, the mining “industry, under the auspices of the Ghana Chamber of Mines, is committed to responsible and sustainable mining practices and therefore is positioned to continuously support national development”.

Prof Buah said this when he delivered the Ghana Chamber of Mines’ 90th anniversary public lecture in Accra over weekend.

Contribution to national revenue 

Prof Buah who spoke on the topic: ‘A Responsible and Sustainable Mining Industry – a Partner for National Development’ noted that the minerals and mining sector is the foremost source of direct domestic tax revenue for the country.

“The industry’s fiscal contributions to Direct Domestic Tax Revenue from 2011 to 2017 have been consistent”.

For instance, he said Ghana’s mining revenue increased to GHȻ 2.16bn in 2017 from GH¢1.6 billion in 2016.

Statistics from the Ghana Revenue Authority (GRA) also indicated that all streams of fiscal revenue attributable to the mining and quarrying sector in 2017 improved over those recorded in 2016.

Specifically, corporate income tax receipts from GHȻ696.9 million in 2016 to GHȻ969.6 million in 2017 while mineral royalty revenue grew from GHȻ550.7 million to GHȻ702.4 million over the same period. These represent an increment of 39 percent and 28 percent respectively.

Furthermore, employee income tax (pay-as-you-earn) increased by 22 percent to GHȻ487.9 million in 2017 as compared to GHȻ399.9 million in 2016.

Increase in Direct Domestic Tax receipts from 15.8% in 2016 to 16.3% in 2017. In nominal terms, the sector’s fiscal payments to GRA increased by 31% year-on-year from GHȻ 1.65 billion in 2016 to GHȻ 2.16 billion    in 2017, according to Ghana Revenue Authority, 2018 report.

Tax 2016 2017
Revenue (GHȻ Million)
Corporate Income Tax Receipt 696.9 969.6
Employee Income Tax 399.9 487.9
Royalty Revenue 550.7 702.4

What accounts for the prestigious status in revenue generation?

Prof Buah added that gold exports increased from 3.84 million ounces in 2016 to 4.61 million ounces in 2017 which he attributed to the upturn in the output of large-scale producers, increase in volume of gold exported by Licensed Gold Exporting Companies, and exports of manganese increased from 2 million tonnes in 2016 to 3 million tonnes in 2017.

Shipments of bauxite also expanded from 1.14 million tonnes to 1.47 million tonnes over the same period, he stated.

FISCAL CONTRIBUTIONS
YEAR AMOUNT  (GHȻ) % OF DIRECT

DOMESTIC TAX REVENUE

2011 1,034,221,712.00 27.6%
2012 1,461,202,977.00 20.7%
2013 1,104,047,315.00 18.7%
2014 1,238,634,779.00 16.2%
2015 1,354,379,971.00 14.8%
2016 1,648,183,049.00 15.8%
2017 2,160,742,773.00 16.3%

Besides, the mining industry’s significant contribution to national revenue, it also contributes hugely to Corporate Social Investment (CSI), and Sustainable Alternative Livelihood Programmes.

Prof Buah stressed that the main objectives of the CSI programmes of the industry are to support the training and development of local people in engineering, construction, electrical and other technical fields; and to provide support for research and charitable projects that are beneficial to the host communities and the entire nation.

YEAR Expenditure on Corporate Social Investments (USD)
2010 17,590,469
2011 43,732,833
2012 26,676,354
2013 12,124,053
2014 20,769,049
2015 17,094,776
2016 12,203,889
2017 19,888,164

The focus of SAL programmes includes support for small, micro and medium enterprises in host communities; training of local people in farming and animal husbandry among others; support for responsible income-generating initiatives/activities; agribusiness and aquaculture; reengineering of mined out areas for tourism; and improvement in tourism facilities in catchment areas.

While the objectives of SAL programmes, Prof Buah mentioned include ensuring long-term sustainability of projects in mining communities even after mining activities have ceased, or when funding for the project is limited; promoting of projects with direct economic and social benefits for host communities; and assisting communities to improve the quality of their lives by equipping them with requisite skills and knowledge to manage their livelihoods.

Health and safety issues associated with mining activities: explosion of gases; inhalation of dust, inadequate ventilation; inrush of water into working areas, rock fall, and other types of injuries; and contamination of effluents.

The environmental damage of mining has been of concern to all stakeholders, according to the dean.

Environmental Sustainability in Ghana

Touching on environmental sustainability in Ghana, Prof Buah said: “Responsible mining requires adoption of mining practices that ensure that mining is done right or satisfactorily”.

He continued: “Responsible mining promotes sustainability.The large scale mining sector is one of the most regulated sectors in the economy.

Adherence to both domestic and international codes, laws, standards and regulations towards the achievement of a sound and safe environment is being practiced in Ghana.

“Strong partnership with the Environmental Protection Agency (EPA) and ensures that environmental compliance is observed holistically”.

The EPA’s requirements: Environmental Impact Assessment and Environmental Management Plan – critical for sustainability in the country.

Overview of Mining

Mining is the extraction of valuable minerals.Mining methods: surface or underground. Minerals mined on a commercial scale in Ghana: gold, diamond, manganese, bauxite, sand, etc.

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