Government legislation requiring mining corporations to pay government-owed royalties on a monthly basis rather than a quarterly basis has been requested by civil society organizations and mining industry players.

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Dr. Steve Manteaw stated during a stakeholder engagement hosted by the Ghana Extractive Industry Transparency Initiative (GHEITI) that although negotiations to alter the law to require mining companies to pay royalties on a monthly basis have been underway, they have not yet reached a conclusion.

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“The regulation has to be amended to give effect to the directive for mining companies to pay their royalty on monthly basis,” he stated.

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Research indicates that only two mining firms have taken up the task to pay royalty on monthly basis. These include Newmont Gold Ghana and Anglogold Ashanti. The amount of royalties paid by mining companies depends on the gross revenue realized from the sale of the mineral product by the mining Company.

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The Minerals and Mining Amendment Act 794 puts the royalty rate application at 5% of the gross revenue of minerals.

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Minerals and mining operations Tax (Mineral Royalty) is imposed on the income of firms engaged in mineral operations. Subject to any financial stability agreement, the mineral royalty rate is 5% of the total revenue earned from mining operations.

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Mineral Rights Payments, other fees Licences, and Property rates are used by the Recipient Agencies that is Minerals Commission and District Assemblies respectively as Internally Generated Funds.

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Mineral Royalty is first paid into the Minerals Income Investment Fund. 20 percent of the mineral royalty receipts are thereafter released to the Minerals Development Fund and the OASL.

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Ground Rent is received by the OASL and distributed in accordance with Article 267(6) of the 1992 constitution. That’s 25 percent to stools; ii. 20 percent to Traditional Authorities within the area of authority of which the stool lands are situated; and iii. 55 percent to the District Assemblies.

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The benefits of monthly payment of royalties by mining companies to the government are that they will help in quick distribution to all stakeholders in the industry especially mining communities to enable them to continue with their developmental programs. The government will also have access to adequate funds to develop infrastructure.

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