<<Print>>

Daniel Owusu-Koranteng, Executive Director of West Africa Communities against Mining (WACAM), has stated that efforts being made by mining operators to convince government to stop the review of the mining stability agreements form part of a ploy to exploit Ghanaians. Mr. Owusu Koranteng, who was reacting to the Economic Intelligence Unit (EIU) of the UK�s March 2012 Country Report, said assertions in the report that government�s establishment of a seven-member team to review and renegotiate the mining stability agreements would lead to renewed tension between mining companies and the government were baseless. According to the report, the mining stability agreements were binding and as such there was little government could do to alter existing agreements. Also, it said the stability agreements sought to protect numerous mining companies in Ghana, adding that as many as 20 large-scale operations did not have such agreements. The report indicated that changes to the mining sector would put the investments of operators at risk. Furthermore, it said government would have difficulty in extracting more from mining companies with agreements and also more difficulty in attracting new mining investments. Government is introducing a new bidding system for mining licences. Previously, licences were awarded on a first-come-first-served basis. The new system will witness concessions offered for international tender and interested companies will have to submit details to prove that they have the technical and financial capabilities to develop such concessions. The new system also encourages greater transparency through open and competitive processes. Mr Owusu Koranteng said the mining and stability agreement was a neo-colonial one which provided adequate protection for mining companies and protect mining particularly at a time when the price of gold was $350/ ounce. �At the time, government gave a lot of concession to the fiscal regime and apart from the provisions in the Minerals & Mining Act, 2006, (Act 703), Government signed investment agreement with Newmont Ghana and Ghana Gold Limited and then a stability agreement with AngloGold Ashanti for them to pay 3 percent royalty which was the lowest rate. �Now the reality has changed. Gold price is around $1,760/ounce which demands that as a nation, we are losing our resources and not benefitting from it, so government has to look at all these factors again. �As a sovereign nation, we have the right to re-look those and it is even in the interest of the mining companies to allow for some re-negotiation since they have come under a lot of negative criticism as a result of the low revenue or benefits from the sector, the human right abuses, environmental problems, social and economic problems, etc.� He revealed that currently mining companies were paying very minimal compensation while trying to give a �glorifying face� to mining through public relations. �They need to open up. Their cry is just a scary strategy which in the face of their current payment and profits is not valid. Government should not to bow to such pressures but insist on negotiating better deals. �Ghana lacks very good negotiators to protect our interests and such negotiators should have much information as to what the mining companies are getting by way of revenue and what we are losing as a nation � environmentally and socially. At the global level, it is no secret that mining companies are reaping windfall profits. They just want to make such noise to deter government from pressing on with its re-negotiation so they will continue to pay peanuts and get away with our money.�