Asutifi South MP Calls for Amendment of Minerals Acts to Ensure Fair Royalty Rates

The Member of Parliament for Asutifi South, Hon. Collins Dauda, has commented on issues relating to Ghana’s minerals and mining laws.

Speaking to the media, Hon. Dauda explained that Parliament passed the Minerals and Mining Act, 2006 (Act 703), which was later amended. According to him, Section 25 of Act 703 clearly outlines the royalty rates for mineral production, setting the rate between 3% and 6%.

He noted that the law states: “A holder of a mining lease, restricted mining lease, or small-scale mining lease shall pay royalty as prescribed, in respect of minerals obtained from mining operations, to the Republic. The royalty rate shall not be less than 3% and not more than 6% of the total revenue from minerals obtained by the holder.” He added that this provision was amended in 2010.

Hon. Dauda further emphasized that, given the national attention on royalty rates, it is the wish of the committee that the Minister presents the proposed amendment to the Act alongside the current mining agreement. According to him, handling both documents simultaneously will help prevent gaps in the law. Before the agreement is ratified, the law must clearly specify the applicable royalty percentage.

He added that once the amendment is passed and the agreement is ratified, the law will apply uniformly to all mining companies operating in the country. This, he said, will promote fairness. For example, if the new law stipulates a 10% royalty rate for lithium mining, then all mining companies will be required to pay the same rate. This will prevent situations like before, when only Ben Harry was made to pay 10% while other companies paid 5%. Their goal, he stressed, is to ensure equity across the mining sector.

Report by PKB