It said: Governments, both past and present, have adopted a piecemeal approach to resolving the concerns of the people of Ghana with respect to mining and thereby allowing mining companies to do whatever they wanted in pursuit of their corporate interests to the detriment of the people and Government of Ghana.
Mrs Hannah Owusu-Koranteng, Associate Executive Director of Wacam, in a press statement, drew attention to the fact that: The mining industry goes through a boom and a bust. The high gold price peaked around 1,910 dollars per ounce in 2011 from 290 dollars per ounce in 1999 and 405 dollars per ounce in 2004.
In 2004, Newmont used a gold price of about 400 dollars for its profitability analysis and even at that low level of gold price, the Company deemed the Ahafo Project as a profitable venture.
Today, with a cash cost of Newmont around 600.00 dollars and the price of gold hovering around 1,400 dollars, many mining companies like Newmont are making a lot of profits while the State is losing out in terms of benefits, Mrs Owusu-Koranteng said.
The statement observed that: Though the Act states that a development agreement is subject to ratification by Parliament, the discretion granted the Minister responsible for mines on a wide range of benefits to companies whose investment is more than 500 million dollars, is the cause of the facility granted to Newmont in the investment agreement for the retention of 100% of its earnings in offshore account.
The problem is with the Mineral Laws of our country and the opportunity for a comprehensive review of the Minerals and Mining Act of Ghana is now because we are already late in taking advantage of the gold boom the statement said.
Wacam has presented its concerns for the review of the Minerals and Mining Act to the Minerals Commission and in our view, the review of the minerals and mining law should take on board the inclusion of the Free Prior and Informed Consent (FPIC) principle which gives mining communities leverage in the decision-making process that must be free from intimidation to accept or reject a mining project
The Law must provide for No Go Zones to protect our environment, especially Forest Reserves, from mining. It must also incorporate the Polluter Pays Principle for mining companies to absorb socio-cultural; environmental; civil; political and economic cost of their operations.
Wacam said the Law must enjoin holders of mining rights and other businesses related to mining to respect and promote human rights including the rights of women, children and workers arising from mining activities, which include but not limited to making adequate provision for the progressive realisation of economic, social and cultural rights as they relate to mining activities and empowerment of women.
It called for the review of the fiscal regime for mining with respect to tax exemptions, stability clauses and the implementation of windfall profit tax to increase benefits to the country.
Wacam recognises that the Government of Ghana has signed and gazetted the ECOWAS Directives on Harmonization of Guiding Principles and Policies on Mining and it is expected that by 1st July 2014, Ghana would have internalised the provisions of the Directives in our laws to make the provisions justifiable, the statement said.