Remove Stability Clauses-NCOM

Accra, Sept 10, GNA - The National Coalition on Mining (NCOM) on Friday asked the Minerals and Mining Law Review Committee to ensure that stability clauses are removed from any new law.

Mr Abdulai Daramani, Head of Environment Unit, Third World Network, said the stability agreements that government signed with some mining firms were robbing the country of huge revenue that could be used to accelerate the country's development.

He said despite the good world market price of gold and its attendant profits that the mining companies were raking, they continued to pay the minimum three percent as royalty to the state because of the stability agreement.

Besides losing revenue, the agreements also take away the state autonomy to use laws to regulate activities of the companies, he said.

"Considering the importance of mining to the economy of Ghana, we believe that a well articulated national policy and law with greater sensitivity to environmental diversity, community interest and national economic development would be beneficial for the country," Mr Daramani said.

The Coalition is also seeking from the Review Committee, a change in the sliding royalty currently in place to a fixed one to enable the country to raise the much needed revenue.

Efforts must also be made to ensure that royalty that accrued were distributed to ensure accountability at the local level, district assemblies, stool lands and the central government.

Mr Daramani said steps should also be taken to address how the mining sector could be successfully integrated to the broad economy and build the institutional capacity to be able to track the activities of the mining company.

Other concerns raised include the pro-active role of the state in the determination and payment of compensation to property owners and a stop to mining in forest reserves.

GNA