The Asantehene, Otumfuo Osei Tutu II, is rallying members at the Ashanti Regional House of Chiefs to make a strong case for review of laws vesting mineral rights in the President.
He believes that if chiefs are interested in getting a major stake in the country’s mineral resources, they will have to push for a review of Section 6 of Article 257 of the 1992 Constitution.
The Asantehene’s statement follows concerns raised over mineral rights during an engagement of the Ashanti Regional House of Chiefs with the Minerals Commission on the amendment of the Minerals and Mining Act.
If we want to change the mineral ownership, we will have to make a strong case at the constitutional review committee. We watched on for them to draft a constitution that didn’t favor us,” he stated.
Otumfuo further indicated, “When they were giving the Obuasi mine out, the Asantehene was in exile at Seychelles Island, they took it for a hundred years. When we had an opportunity to change things after the expiration, we couldn’t do anything. We should be worried about the constitution.”
To the Asantehene, it is about time the traditional authorities pushed for equity, rather than royalties in mineral reserves.
Community Empowerment
The Minerals Commission, together with the Ministry of Lands and Natural Resources, has been visiting the various Regional Houses of Chiefs for an engagement on the review of the Mining and Minerals Act.
According to the Commission, the review is necessary to improve the benefits of mining to the catchment communities and the country as a whole.
The present order fails to hold mining firms strictly to devote a portion of their resources to community development.
In the review, one percent of gold sales will be set aside to develop the communities.
CEO of the Minerals Commission, Michael Ayisi, sees this as a boost to community development.
“From my calculations, Ahafo Newmont sold 1.2 billion dollars of gold in 2024, one percent of that amount should give the community 18 million dollars. That is huge. The companies accepted it when we proposed it to them,” he said.
Role of Traditional Authorities
Traditional authorities are also being given a role in the granting of mining licenses.
Presently, Chiefs are not consulted in granting licensing.
Deputy Minister for Lands and Natural Resources, Sulemana Yusif, explains, “the current system often sidelines the custodians of the land in decisions that affect their communities.”
“We believe that no mineral rights, being small, medium and large scale mining, should be granted without full involvement and consultation with the traditional authorities,” he added.
The reviewed act seeks to empower locals in owning large scale mining consignments.
Also, the government’s campaign promise to introduce a cooperative mining scheme will be prioritized in the review.
The Deputy Minister indicated, “the initiative will allow local cooperatives under the co-guidance of Nananom to own and manage mining ventures in a structured, sustainable manner.”
The profits will directly fund community developments,” he added.
Presently, mining leases are granted for 30 years, but the review is limiting the period to a maximum of 15 years.
According to Ayisi, prospecting mining licenses which are granted in perpetuity, subject to renewal, will be limited to less than seven years and renewed intermittently.
On the benefits of the review to the government, the development agreement option to firms which allows exemptions to some levies, will be expunged.
Ayisi, in explaining the review to the house, says, “so far, three companies hold the agreement. After giving them the concession, we waived some taxes and fees for them as well. In 2023, they wouldn’t pay a stabilization levy to the government.”
It will also spell out how the government will take ownership of all immovable properties after the operations of the mine.
Comments