'Companies not to blame for underdevelopment'

The high levels of underdevelopment in many parts of the country’s mining communities cannot be blamed on mining companies, Dr. Toni Aubynn, Chief Executive Officer (CEO) of the Ghana Chamber of Mines, has stated. He said communities should be bold to demand answers from the government, district assemblies and traditional rulers who received royalties from the mining companies.

Dr. Aubynn who was speaking at a media conference, said no one should think it was the responsibility of mining companies to construct roads or undertake other capital-intensive projects in the communities.


He said notwithstanding this, the mining companies have over the years lived up to their social responsibilities by supporting the provision of various development projects and programmes that had contributed to raise the living conditions of the people.


He pointed out that stakeholders in the communities must ensure that the royalties paid are not misappropriated, as they were mostly meant for community development.


The media interaction, which is an annual affair, afforded the Ghana Chamber of Minesan opportunity to explain its activities to the media and open itself up for questions relating to mining in the country.


He said the fact that mining remains the largest fiscal contributor to the economy underlines the importance of the industry in national development.


In 2012, for instance, mining contributed about GH¢1.46billion to the Ghana Revenue Authority (GRA), representing 27.04 percent of the GRA’s total direct taxes in that year.

Mining companies also paid GH¢893.77million in corporate tax to the GRA, representing 36.98 percent of the total company tax collected in 2012. The sector voluntarily contributed about GH¢26million to its host communities and the public.


Dr. Aubynn said mining companies returned about US$3.2billion, representing 73 percent of their mineral revenue, through the Bank of Ghana and the Commercial Banks in 2012 against statutory requirement of a minimum of 25 percent.


On employment, he said the companies engaged 21,239 people directly -- of which 334, representing two percent, were expatriates.


He said the unfavourable fiscal environment and declining gold price in Ghana are taking a toll on revenues from mining.


For instance, revenue loss in the second quarter of this year stood at US$13.2million.


Dr. Aubynn said estimated corporate tax payables to government for 2013 had worsened sharply, as shown by revised self-assessment tax returns.