Ghana to review, re-negotiate stability agreements with miners
A seven-member team has been inaugurated to review and re-negotiate stability agreements in the mining sector. This is to improve the benefits derived from mineral resources in the country.
Ghana’s natural resources are mostly extracted by expatriate companies, thus its benefits have not been fully realised in the development of the country.
To this effect, Finance Minister, Dr Kwabena Duffuor, has put together a seven member team to take another look at stability agreements with mining companies.
He said the review was necessary as the nation has benefited little from dividends and record world prices of gold.
He also noted that despite the phenomenal increase in gold price, the country has not benefited much from its gold mines.
The team’s first mandate is to review and re-negotiate any part of a Stability Agreement signed between Ghana and any mining company that is not in the best interest of the country.
The team will also determine the extent to which the stability agreements depart from all mining leases granted to other mining companies and redesign any existing mining agreement as well as draft new agreement where necessary.
This is to ensure support for Ghana’s economic growth and development. In addition, it will establish whether the Stability Agreements comply with provisions of the mining laws of the country, the legal regime for mining consisting of fiscal imposition, foreign exchange regulations, duration of stability arrangements, and the provisions of the country’s tax laws.
Other areas of reference for the team include the review of the mining list with the view to reducing exemptions granted and promotion of local content and establish whether the country is in a breach of any provision of any mining
agreement.
By: e.tv Ghana
Accra, May 17, 2012
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