Cost benefit analysis on Ghana's mining sector is negative

Accra, April 23, 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."


Mrs 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.