Include Landowners in Payment of Community Mineral Royalty, Says Report

Accra: A study on the proposed Minerals Royalty Bill in Ghana has recommended the inclusion of landowners in the payment of the community-level portion of the mineral royalty. The study suggested that this inclusion would help minimize conflicts in mining areas by placing landowners at the forefront of facilitating mine development, similar to the role traditionally held by chiefs. According to Ghana News Agency, the study was presented by Dr. Abdulai Darimani, a consultant, at a national conference on the proposed bill. The report was commissioned by Livelihood and Environment Ghana, a non-governmental organization, in collaboration with ten civil society organizations working on extractives, with support from the Star Ghana Foundation. It proposed a review of the existing formula by increasing the share allocated to community-level stakeholders. The report highlighted that the existing 20 percent formula, developed in 1960, has remained unchanged for over 65 years, suggesting that a review is overdue. In Ghana, discussions on revising the mineral royalty have intensified public debates about the fair distribution of mineral wealth. The Minerals Commission noted a traditional ruler's lament over the unfair distribution of mineral royalty at a public meeting. The Minerals and Mining (Amendment) Act, 2015 (Act 900) eliminated the five percent fixed royalty rate, granting the Minister of Lands and Natural Resources the power to prescribe the applicable rate. The report proposed increasing the royalty disbursement from 10 percent to 15 percent. It recommended that the Office of the Administrator of Stool Lands receive three percent of this 15 percent to ensure timely disbursement and efficient monitoring of funds. Furthermore, the report suggested converting the remaining 12 percent into a 100 percent distribution formula: 15 percent to the stool, 10 percent to traditional authorities, five percent to landowners, and 70 percent to District Assemblies. It also recommended setting timelines for royalty disbursemen t between institutions to prevent potential abuse of discretion and delays in transferring royalties. Mr. Richard Adjei Poku, Executive Director of LEG, explained that the report examined the legal and institutional framework regulating royalties in Ghana. The report's purpose was to outline mining's economic importance and the role mineral royalty plays in domestic revenue mobilization.