House of Chiefs calls for retention of one per cent of mining revenue in local areas

The National House of Chiefs is advocating a review of Ghana’s mining revenue-sharing framework, proposing that at least one percent of the gross revenue from mining be retained in the communities where mining activities take place.

Ogyeahohoo Yaw Gyebi II, President of the House, who made the call at its meeting in Kumasi, said while mining remained a key contributor to the national economy, host communities continued to face significant environmental and social challenges with limited financial benefit.

He observed that many mining towns had experienced land degradation and environmental pressures associated with mining operations.

According to him, these challenges had increased calls for a fairer system that allows communities to directly address the impact of mining activities in their localities.

The President of the House explained that larger portions of mining revenue went to central government, while a comparatively small amount was shared among municipal assemblies and traditional authorities.

He noted that after statutory deductions, the amount that eventually reached traditional areas could be quite limited, especially where multiple stools shared the same allocation.

Ogyeahohoo Yaw Gyebi II clarified that royalties received by traditional authorities were used for a range of community-related purposes, including educational support, assistance to vulnerable persons, and the maintenance of traditional institutions.

He emphasised that while these funds were important, they were often insufficient to address development and environmental needs in mining communities.

Against this background, the National House of Chiefs President suggested that retaining at least one percent of gross mining revenue in host areas, separate from royalties, could provide additional support for local development and mitigation efforts.

He described the proposal as a practical step that could strengthen local capacity without undermining national revenue interests.

Ogyeahohoo Yaw Gyebi II also referenced practices in other resource-rich countries, noting that some retain a higher share of mining revenue at the local level. 

While not calling for extreme measures, he encouraged policymakers to consider gradual improvements to Ghana’s current framework.

He disclosed that a standing committee of the House had invited written proposals on the issue, which were to be submitted by mid-January, after which the recommendations would be forwarded for further consideration.

The discussion, he noted, was intended to contribute constructively to national dialogue on balancing economic benefits with local development needs in Ghana’s mining sector.

Source: GNA

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