Corporate Galamsey: Minister defends mining companies

Lands and Natural Resources Minister says no law has been broken by licensed mining companies who are mining their various concessions without Parliamentary approval.

Nii Osah Mills told Myjoyonline.com in an interview that the mining companies can't just sit and wait for parliamentary approval when they have a business to run, and government an economy to manage.

According to him, the companies  are working and paying their taxes to the government as required by law and there is no cause for alarm.

The minister was reacting to comments by the  Chair of the Mines and Energy Committee in Parliament, Dr Kwabena Donkor, indicating that mining companies are "criminally" operating without due Parliamentary ratification.

The Pru MP has on several occasions accused the mining  companies of engaging in "monumental galamsey" because, contrary to Article 268 of the 1992 Constitution, the companies are mining their various concessions without the necessary ratification.

Article 268 (1) of the 1992 Constitution states: “Any transaction, contract or undertaking involving the grant of a right or concession by or on behalf of any person including the Government of Ghana, to any other person or body of persons howsoever described, for the exploitation of any mineral, water or other natural resource of Ghana made or entered into after the coming into force of this Constitution shall be subject to ratification by Parliament."

Dr Kwabena Donkor had early on told Myjoyonline.com that "it is at total disrespect for our sovereignty as a people. Secondly, it can lead to revenue leakages because the essence of parliamentary ratification is for parliament to determine whether the terms inure to the interest of Ghana.”

He was also quick to refer to the Mining Act 703 which also gives the mining companies the power to begin mining concessions within two years after receiving their licenses, failing which the licenses will be withdrawn.

He was convinced the two laws are manifestly in conflict with each other and until the executive moves to resolve the conflict the illegality will continue to persist.

When Myjoyonline.com contacted the Mining Commission, regulators of all mining activities in Ghana, its Chief Executive, Dr Toni Aubynn agreed there was some conflict within the laws but disagreed that the mining companies were mining illegally.

He said the onus now lies with the executive to have the various transactions ratified in Parliament because "If we don't, then the question becomes should the operator wait until it is ratified before it starts working or should he follow what is in the mining lease agreement that says that two years after receiving this you should start production."

He said the companies would have broken the law anyway and their licenses taken away from them, if they fail to mine their concessions within two years after receiving their licenses.

"...And now if their transactions is not ratified it may also seem as if they have broken the law.  It is like a rock and hard place. It is our responsibility as a state to try and address these things as promptly and quickly as possible."

"...It is up to the institution, the ministry to present it to Parliament [for ratification]," he stated.

Checks by Myjoyonline.com indicate that some of the mining companies have been operating for over four years without the necessary ratification, a situation Dr Aubynn believes cannot be blamed on the mining companies.

He admitted the situation has persisted for a long time and there is the need to address the anomaly. 

When Myjoyonline.com contacted the Minister, he said government is taking the necessary steps to have the various transactions ratified by Parliament but vehemently rejected assertions the companies are engaging in any illegality.

"I can say that I don't agree with the honorable [Dr Kwabena Odonkor] because there is no mining company, at least those doing what I will refer to as legal mining, small scale and large scale miners with a license, who is operating illegaly," he said.

Even though he acknowledges the thorny issue of ratification, he said:

"As far I as I know there is no deadline or timeframe within which the ratification should take place. So if the minister issues a mining license and the company starts operating by virtue of the minister's action the company cannot be said to be carrying out an illegal activity. I don't agree.

He said the constitution is a broad sweep of the wishes and aspirations of the people but the mining act is an operationalisation of that wish and makes it a reality.

"You have an entity that is going to mine; it receives the permission to operate from the minister and he can't just sit and wait whilst legislators and others who may not be ready at a point to [ratify it']

"Once you have a law, the law must be practical," he said adding the mining act provides that practical framework for the constitution to be implemented.