March 11, 2016

ECOWAS to implement Common Mining Code by 2012
-To harmonize mineral resources for dev’t
Masahudu Ankiilu Kunateh, Ghanadot

Accra, May 31, Ghanadot - The Economic Community of West African States (ECOWAS) will by the end of 2012 implement a Common Mining Code to ensure the harnessing and harmonizing of mineral resources for growth and development of the sub-region.

To this end, an ECOWAS Directive has been adopted by the ECOWAS Council Ministers of Mines at meeting in Abuja, Nigeria.

The Directive will prelude to the implementation of the Common Mining Code which seeks to ensure a concordance in the approach by member states in harmonizing their national mining legislations.

The Executive Director of the Wassa Communities Affected by Mining (WACAM), Mr. Daniel Owusu-Koranteng disclosed this at a workshop for civil society organizations on the ECOWAS Directive on the Harmonization of Guiding Principles and Policies in the Mining Sector in Accra.

He further disclosed that a Common Mining Policy will also be implemented concurrently with the mining code to help streamline mineral resources legislations in the sub-region.

To give credence to the ECOWAS Directive, Mr. Owusu-Koranteng called on the Ghanaian government to revoke the Environmental Permit granted to Newmont Akyem project to mine in the Ajenua Bepo Forest Reserve and also demonstrate its preparedness to define Forest Reserves as “No Go Zones” for mining.

Additionally, “We also call on government to revoke the Environmental Permit provided to Adamus Resources to mine in Teleku Bokazo, Anwia and Nkroful as a way of avoiding the conflicts that had been generated as result of the intended mining operations in the area and to respect community opposition to the mining project. We believe that if government takes these initial actions, it would send positive signals of its commitment to ensure the effective implementation of the ECOWAS Directive”.

Speaking on a topic “ECOWAS Directive on the Harmonization of Guiding Principles and Policies in the Mining Sector-Prospects and Challenges”, the Deputy Executive Director of the Centre for Public Interest Law, Mr. Augustine Niber, noted that the objectives of the ECOWAS Directive comply with the provisions of Article 31, chapter 6 of the Revised Treaty which prescribes the harmonization of policies in the natural resources sector of member states.

The main objectives of the ECOWAS Directive are the adoption of a common mining policy and the adoption of a common mining code for the West African countries.

While, the main convergence guiding principles formally stated in the formulation of the Directive are included to contribute to the macro-economic development of the member states, promote development and infrastructure at local and regional levels, and ensure fair allocation of minerals income to local communities, and to the member state in enabling promotion of a sustainable development policy.

Commenting on the Gaps of the Minerals and Mining Act, 2006 (Act 703), a Legal Practitioner, Mr. John Opoku described the Act as one of the perfect examples of the neo-colonial law.

He argued that the Act gives more power to the multinational mining companies than the poor indigenous mining communities and called on parliament to amend the Act.

The Director In-Charge of Monitoring and Research of WACAM, Mrs. Hannah Owusu-Koranteng used the occasion to outline some of the challenges facing mining advocacy in the country.
These she mentioned weak legal framework for mining, weakling environmental standards, and weak regulatory institutions, huge capacity gap between mining communities and multinational mining companies and lack of organization for mining communities.

Ghanadot



Minister appeals to Mining Companies to redeem their bad image
Masahudu Ankiilu Kunateh, Ghanadot
The Minister of Lands and Natural Resources, Alhaji Collins Dauda has appealed to mining companies operating in Ghana to redeem their bad image.

He observed that the mining industry’s reputation for conservation of ecological biodiversity for the benefit of future generations leaves much to be desired.

“Therefore you must begin, if you have not already done so to change this negative image of the industry. This repositioning means listening carefully to the legitimate concerns of stakeholders, and addressing them in concrete and practical ways”, the Minister appealed.

Alhaji Dauda made the appeal at the 81st Annual General Meeting (AGM) of the Ghana Chamber of Mines held in Accra over the week end.

He called on the captains of the mining industry to adapt approaches to reflect more explicitly, the balance that needed to be achieved in the economic, environmental and social spheres so as to attain real sustainable development in the country, especially in mining communities.

As part of the current generation, the mining companies must include future generations and their needs in their operations. That is to say, it must be possible for the current generation to meet their needs without compromising the ability of future generations to their own, Alhaji Dauda urged.

The President of the Ghana Chamber of Mines, Mr. Jurgen Eijgendaal called on the government to plough back at 30% of its share of the mineral royalties into infrastructure projects in the mining communities.

He assured that this would augment the industry’s efforts and cumulatively redound very well on government and the host communities.

Reviewing the 2008 performance of the mining industry, Mr. Eijgendaal disclosed that 63% of mineral revenue last year was directly returned to the country through the Bank of Ghana as some commercial banks.

He further disclosed that the mining industry deployed 22% of its revenue to procure inputs locally besides the 13% and 8% used to procure diesel and electric power locally.

In sum, producing member companies procured 47% of all their inputs and 71% of their consumables locally during the period under review.

According to him, the general state of insecurity and the spate of illegal mining were rather rampant during the year under reference.

He cited several cases of illegal mining were reported at Golden Star Bogoso/Prestea Mines, Gold Fields Damang mines as well as Anglo Gold Ashanti Ouasi mine.

In his welcome address, the 1st Vice President of the Ghana Chamber of Mines, Mr. Dan Owiredu noted that one of the greatest challenges facing the mining industry is the creative integration of mining as an economic activity within the imperative of environmental integrity and social concerns.

Ghanadot



Realization of the single currency for the West African sub-region looks bleak

Masahudu Ankiilu Kunateh, Ghanadot

In spite of several years of preparations and debates, conferences and consultations, West African countries are still far from actualizing the dream of a single currency, popularly known as the Eco for the sub-region.

Indeed, economic indicators within the sub-region shows that it will take several more years from now before cash dispensers in the member countries of the monetary union start to roll out crunchy Eco bank notes instead of national currencies.

At the recent Council of Ministers and Governors of Central Banks of the West African Monetary Zone (WAMZ) further recommended that the start of the single currency, Eco and monetary union scheduled for December this year should be shifted to January 2015.
This follows the realization that the earlier date is not feasible.
The latest recommendation was made at the end of the 24th meeting of the Convergence Council of Ministers and Governors of West Africa in Abuja, Nigeria. Also present were the West Africa Bankers Association, West Africa Institute for Financial and Economic Management, West Africa Monetary Agency, West Africa Economic Monetary Union and Bank Central Des Etats de l'Afrique de I'Ouest.
It came out at the end of the meeting that the member states had failed to achieve adequate and necessary degree of macro economic convergence and structural and institutional benchmarks under the Banjul Action Plan (BAP).

The good dream expressed by our politicians and other visionaries has taken long time to materialize even realizing it is becoming extremely cumbersome. This is partly due to the over thousands twists and turns along the way.

Latest information emanating from the West Africa Monetary Institute (WAMI) headquarters in Accra, Ghana’s capital town discloses that Ghana is the worst performer in the push for economic convergence before the introduction of the single currency.

Ghana is trailing the four other countries of the West African Monetary Zone (WAMZ) in meeting the convergence criteria.

Because of this poor performance, pressure is mounting on the country to relocate the WAMI headquarters from Ghana to the Gambia which has been all the four criteria, since 2006.

However, sources within the WAMI say that the headquarters is going to be remained forever. This is supported by the constitution of the WAMI adopted by the West African countries some time ago.

The four basic convergence criteria are, single digit inflation, fiscal deficit/gross domestic product ratio of less than four percent, central bank financing of deficit of less than 10% and a gross external reserve that could finance not less than three months of imports, have really a major challenge for many countries.

Among the four countries, so far, only The Gambia has met all the four criteria, since 2006, while Nigeria has met three of them, missing out on inflation target in December 2008, with Sierra Leone and Guinea meeting two of the criteria.

Depressingly, Ghana has been adjudged as the worst performer, battling to attain even one of the criteria.

At the meeting to review the Monetary Policy Committee (MPC) of the Bank of Ghana for the first quarter of this year, the Governor of the Bank, Dr. Paul Acquah admitted that “it is not possible to introduce the common currency for the five-member West African Monetary Zone (WAMZ) this year”, given the economic performance reported by all the countries so far.

The five West African countries were expected to replace their national currencies with the common currency in January 2003 but many factors combined to make the launch date unfeasible, so it was shifted to December 2009 and further recommended to change to January 2015.

“Dr Nelson Olalekan Magbegbeola, Principal Programme officer of ECOWAS Multilateral Surveillance, noted that the single currency will improve trade and facilitate economic activities in the sub-region.

He asked WAMI to also collaborate with the ECOWAS Commission in the implementation of the BAP, especially the trade related aspects.
He disagreed with claims that "the entire programme was a waste of resources and time, arguing that it will be more beneficial to the member counties to adopt a single currency so that their citizens would not need to change into other currencies each time that they travelled to other parts of the sub-region.
With regard to the global economic recession, it urged member states to protect their economies from the ongoing financial crisis.
"Recent worldwide economic shocks have affected the member states,” Dr Magbagbeola stated.
He disagreed with claims that "the entire programme was a waste of resources and time, arguing that it will be more beneficial to the member counties to adopt a single currency so that their citizens would not need to change into other currencies each time that they traveled to other parts of the sub-region.

The Governor of the central bank of Nigeria Charles Soludo said the only two countries, which had attained the primary criteria have also come under the global financial pressure and food crises like other countries in the world.

Ghanadot