Download mining and sustainable development

DEVELOPING MESSAGES FOR THE UN CONFERENCE
ON SUSTAINABLE DEVELOPMENT REVIEW –
DEVELOPING COUNTRY PERSPECTIVE
MINING AND SUSTAINABLE
DEVELOPMENT IN GHANA
PRESENTED BY
Messrs. BEN ARYEE & JOSEPH Y. ABOAGYE
DATE: SAT. MARCH 1, 2008
PRESENTATION OUTLINE
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Introduction
Governments Role
– The Policy and Regulatory Framework
– Basic Geo-scientific Data Availability
– The Legal Framework/Regime
The Operating Environment
– Maximization of local content in the mining sector
– Mitigating the negative impacts
– Stakeholder Participation
– Corporate Social Responsibility
– International Cooperation
Contribution of Mining to Ghana’s Economy
Conclusion
INTRODUCTION
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It is noted that mining necessarily ends up depleting
the resource it uses and is characterized by some
negative impacts
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However, it has significant potential for making
positive impacts, as acknowledged in chapter 46 of
the Johannesburg Plan of Implementation of the
WSSD.
INTRODUCTION
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As it was especially noted, it is possible for mining
to contribute to sustainable development through:
(1) enhancing the benefits while mitigating the negative
impacts both when mining is taking place and
subsequently as well as
(2) improving stakeholder participation
management of the resources.
in
the
INTRODUCTION
In this context, this presentation reviews
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Measures aimed at ensuring and
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the extent of the contribution of mining in Ghana
to Sustainable Development in line with the
Brundtland Commission definition of such
development as;
– “Development that meets the needs of the
present without compromising the ability of
future generations to meet their own needs.”
Government’s Role
Governments are put in place to ensure, or at least
facilitate,
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the socio-economic development of the people
within its jurisdiction through the use of the
resources available to it, especially those in which
comparative advantage exists or can be
developed.
In this respect the interventions Government has
been pursuing towards Sustainable Development
through mining include:
Government’s Role
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The Policy and Regulatory Framework
– Mining Policy which has sustainable development as its
guiding principle
Basic Geo-scientific Data Availability
– Currently, enormous geo-scientific data gathering – both in
the form of airborne geophysical surveys and ground
studies - is being undertaken in the country under a EU
supported Mining Sector Support Programme.
The Legal Framework/Regime
– A fair, stable regime based on Good Governance (Act 703)
– Regime that ensures reasonable revenue to Government
– Regime that demands environmental protection &
Remediation
– Regime that recognizes environmental protection and
remediation
– Regime demanding integration with local economy
THE OPERATING ENVIRONMENT/REGIME
Mining uses up the resources which promoted it, thus it must
catalyze the development of other economic activities and also
generate enough positive impacts to assist in sustainable
development.
Developments observed in Ghana’s Mining Sector include:
 Maximization of local content
– Human Resource Development (HRD)
 Significant increase in number of locals in senior management
– Other Local Resource
 Significant increase in the number of Mine Support Service
Companies, from 70 in year 2000 to 130 in 2007.
 Local companies provide; assay, exploration, contract mining
etc to mining companies
 Ghanaian owned companies account for some 30% of the total
THE OPERATING ENVIRONMENT/REGIME
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Mitigating the Negative Impacts
– Environmental Permits made requirement for the
acquisition of mineral rights
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Stakeholder Participation
– Publication of applications at the district and local levels
– Public hearings
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Corporate Social Responsibility
– Mining companies assist local communities within close
proximity of their operations through the establishment
of fund or foundation for community development
– This fund is financed by a stated amount for every ounce
of gold mined and/or a stated amount proportion of
pretax profits
THE OPERATING ENVIRONMENT/REGIME
International Cooperation
Governments subscription to the EITI
– increase transparency in the receipt and utilization of
payments and revenues generated by extractive industries.
– Ghana has gone beyond the requirements of EITI to
further incorporate transparency in the use of such receipts
at the local communities through the MDF
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Ghana has also associated itself with international
organizations, like the African Mining Partnership
and the Intergovernmental Forum on Mining and
Metals, with focus on sustainable development
through mining.
Contribution of Mining to Ghana’s Economy
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Political Stability
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Economic Contributions
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5% GDP;
12% of Government Revenue;
7% of Ghana’s total corporate tax; and
41% of total export earnings
Export earnings from the mineral sector in 2007
amounted to US$2.5 billion
Employment Generation
– Large scale mining sector employs 20,000 people;
– While over 500,000 people are engaged in smaller
scale operations; and
– Mine Support Service Companies employ 4,000 people
–
Conclusion
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These modest contributions have in no small way supported
the development of other sectors of the economy of Ghana
and are expected to be the foundation for broader-based
sustainable development.
Opportunity exists to deepen the geoscientific knowledge base as
a means of optimizing the exploitation and utilization of the
country’s mineral resources while enhancing the capacity of
regulatory agencies for the purpose.
While assistance, both bilateral and multilateral, would be
welcomed in these respects, Government will continue to
work at improving its facilitation role while working with all
other
stakeholders
towards
achieving
sustainable
development through mining.