Ahmed Dasana Nantogmah, Acting CEO of the Ghana Chamber of Mines, believes Ghana’s development is deeply intertwined with its mining sector. He argues that the industry is not just a revenue source but a cornerstone of national progress, stating that, “But for mining, Ghana won’t be here today.” In a recent interview, Nantogmah highlighted the sector’s economic contributions, addressed the challenges faced by mining communities, and called for improved management of mineral royalties. This article delves into Nantogmah’s perspective, providing insights into the state of mining in Ghana and its critical role in the nation’s advancement.

Ghana’s present level of development, according to Nantogmah, is largely attributable to the mining sector. While mining revenue significantly bolsters the national economy, he acknowledges that the benefits are not always apparent in local mining communities. Beyond revenue, mining companies invest in these communities, providing essential services like schools and hospitals—contributions often overlooked in broader discussions about development.

A common perception exists that mining companies bear sole responsibility for the underdevelopment of their host communities. Nantogmah challenges this view, pointing to the mineral royalties paid to both local and national authorities, funds specifically earmarked for community development. He questions the transparency surrounding the use of these royalties, highlighting the paradox of assemblies receiving royalty payments while still relying on mining companies for infrastructure development.

“Why is it that assemblies that are benefiting from royalties are still turning to mining companies to construct roads, schools, and hospitals?” Nantogmah asked. He cited Gold Fields Ghana’s construction of over 33 kilometers of road for a community as an example of companies stepping in where local governance should be taking the lead. The Chamber advocates for a Mineral Revenue Management Act, modeled after the petroleum revenue management act, to prevent the diversion of funds into recurrent expenditure and ensure royalties are strategically invested in health, education, and sanitation projects.

Obuasi, a town with a long history of mining activity, presents a stark example of the challenges. Despite decades of mining, Obuasi has not experienced commensurate development. Nantogmah questions whether royalties are reaching Obuasi and, if so, how they are being utilized. He argues that both mining companies and state institutions/assemblies responsible for managing royalties should be held accountable for community development. Collaborative efforts, he believes, are essential to addressing the developmental needs of mining communities.

Poor town planning in mining areas compounds the problem, and Nantogmah emphasizes that mining companies should not be expected to shoulder responsibilities that rightfully belong to local government. The issues are complex and multifaceted, requiring a concerted effort to address them effectively.

A recent study highlighted a concerning trend: 80% of mining revenue benefits are concentrated in Accra, the capital city. This suggests that while mining contributes significantly to national development, particularly in the capital, the benefits are not evenly distributed. Nantogmah suggests a re-evaluation of the allocation and utilization of mineral royalties, proposing an increased revenue share for mining communities tied to specific development projects. Such a shift, he argues, would ensure that those most directly affected by mining activities also reap the greatest rewards.

In conclusion, Ahmed Dasana Nantogmah’s insights emphasize the indispensable role of Ghana’s mining sector in driving national progress. While mining companies contribute significantly, greater transparency and accountability in the management of mineral royalties are essential. By implementing a Mineral Revenue Management Act and ensuring that mining communities directly benefit from the revenue generated, Ghana can maximize the positive impact of its mining sector and ensure more inclusive and sustainable development. Nantogmah’s call to action urges all stakeholders to rethink current practices and work towards a more equitable distribution of mining wealth, ensuring that the benefits of this vital sector reach those who need them most.