Increase royalties to Minerals Development Fund

Mr Elijah Adansi-Bonah, Municipal Chief Executive (MCE) for Obuasi, is advocating for an increase in mineral royalties’ inflow to the Minerals Development Fund (MDF) from the current 20 percent to at least 30 percent.

Describing the current allocation by the Minerals Income and Investment Fund (MIIF) as inadequate, the MCE proposed that an increase in the allocation to the MDF should have a corresponding increase in the portion allocated to the mining communities from the MDF.

Mr Adansi-Bonah made these suggestions when he led the Board Chairman of the Minerals Development Fund, Mr Kwaku Sakyi Addo, and staff of the MDF to inspect an ongoing health centre in Obuasi being funded with allocations from the MDF.

Established by an Act of Parliament, Act 978 in 2018, the law specifies that MIIF allocates 20 percent of royalties collected across all mineral types to the MDF which is responsible for deploying directly to traditional and local government authorities.

Two percent of the proceeds go into the operations of MIIF, 2.4 percent to the Ghana Revenue Authority (GRA) as a collecting agent and 75.6 percent go into investment activities.

The Minerals Development Fund Act, 2016, (ACT 912) also stipulates that only 20 percent of the money received by the MDF from MIIF shall be allocated to the Mining communities.

The MCE believed that though the MDF was contributing significantly to enhancing development in the mining communities, an increase in the percentage would serve the people better and make them appreciate the benefit of mining in their communities.

He said a two-storey health centre at the Central Business District of Obuasi was nearing completion with plans to construct access roads and procurement of equipment currently ongoing.

According to the Obuasi MCE, the project which is being executed at a cost of over GHC 1 million is expected to be commissioned in July, this year.

He also mentioned a 6-unit classroom block at Kokoteasua which had been completed and is currently in use.

The construction of another two-storey nurses’ bungalow for health workers at Sanso Health Centre would soon commence providing decent accommodation for the workers.

Mr. Sakyi Addo expressed satisfaction with the judicious use of the funds allocated to the Municipality.

He lauded the Local Management Committee for spearheading the construction of the projects which he said would impact positively the lives of people in the beneficiary communities.