Mining Sector Is Highest Taxpayer

The Ghana Chamber of Mines (GCM) has revealed that the mining sector is the highest contributor to Ghana Revenue Authority (GRA).

According to the Chamber, the sector contributed about $540 million to the GRA, representing 27.61 per cent of total internal revenue collections in 2011.

The mining sector also paid $360 million in corporate tax to GRA, representing 38.26 per cent of the total company tax collected in the same year.

Dr. Toni Aubynn, Chief Executive Officer (CEO) of the GCM, who disclosed these in an interaction with journalists in Takoradi last Wednesday, added that the mining sector also contributed about 42 per cent of gross merchandise exports earnings.

He indicated that the sector contributed about $27 million to communities in which they operated and the general public.

“Mining companies returned about $3.1 billion, representing 75 per cent of their mineral revenue through the Bank of Ghana (BoG) and the commercial banks in 2011 against the statutory requirement of 25 per cent,” he stressed.

He said people sometimes exaggerate expectations in host communities.

He indicated that in Ghana there are only four traditional minerals which include gold, manganese, bauxite and diamond and that out of the four, only gold gave Ghana about 95 percent in terms of the value of mineral resources, making Ghana a mono-mineral economy.

He mentioned that minerals such as kaolin, salt, clay, marble, mica, iron ore and limestone have not been fully exploited.

Dr. Aubynn bemoaned the rate at which illegal miners popularly called “galamseyers” were degrading the environment.

He could not fathom why politicians continue to encourage the illegal miners to continue their activities even though the politicians were aware of the illegality, adding, “I think the politicians only want the votes.”

“The law is against illegal mining and the fact that some people have to do it to survive does not make it right,” he noted.

The CEO of Chamber of Mines asked government to encourage the illegal miners to organize themselves so that they could be supported to embark on legal small-scale mining.

Dr. Aubynn complained about the alleged invasion of Chinese nationals, stressing that it was illegal for foreigners to engage in small-scale mining in the country.