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Mining sector puts cost problems on government
Accra, April 23, Ghanadot/GNA – Government is actually not
benefiting from investments in the mining sector due to
gross disregard for externalities and other social costs,
Mrs Hannah Owusu-Koranteng, a representative of mining
communities, told delegates attending the 12th UNCTAD
conference in Accra on Wednesday.
She said: “Because mining companies in Ghana do not absorb
the social, environmental and cultural costs of mining, the
real cost is not known.
“If a Cost Benefit Analysis is carried out on the mining
sector in the Ghana, the prospects will be negative because
mining companies do not internalize externalities.”
Ms. Owusu-Koranteng said it was unfortunate that even though
the mining law required mining companies to pay royalties of
between three and six per cent, no company had ever paid
more than three per cent.
She noted that about 80 per cent of mining companies’
profits went into offshore accounts to the detriment of
thousands of farmers and landowners who received meagre
compensation rates.
Mrs. Owusu-Koranteng said mining companies were displacing
several landlords in mining areas adding’ ”the first phase
of Newmont Mining Company at the Ahafo Mine alone displaced
about 9,300 landlords”.
“Clearly everyone can tell that they are displacing more
than they are employing into the sector,” she added, and
called for a holistic look at mining and its real benefit in
Ghana.
Mr. Mamadou Cissokho, representing West African farmers,
called for the contextualisation of the term “commodity”
since in the developed world, it meant cash crops but in the
developing world, it is usually regarded staple foods.
He attributed the current food price hikes to lack of
attention given to agriculture by leaders of developing
nations saying “our leaders have abandoned their
responsibilities in agriculture”.
Mr Cissokho expressed regret that ratified protocols and
conventions sat on shelves for years without implementation
because of lack of political will and commitment.
He called on farmers especially those in Africa and the
developing world, to rise up and impress upon their
governments to improve upon agricultural policies.
“When African and Third World farmers work so hard and there
is bumper food production, they suffer because of lower
prices, but when they produce little and prices go up, then
there is a problem.
Speakers who represented civil society in Africa addressed
various issues on the impact of the commodity boom on
farmers and the mining communities.
The issue of the commodity boom is featuring high on the
agenda of the UNCTAD XII which has attracted over 4,000
delegates from all over the world.
GNA
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