MINING AND SUSTAINABLE DEVELOPMENT IN GHANA 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 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 It is noted that mining necessarily ends up depleting the resource it uses and is characterized by some negative impacts However, it has significant potential for making positive impacts, as acknowledged in chapter 46 of the Johannesburg Plan of Implementation of the WSSD.

INTRODUCTION 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 in the management of the resources.

INTRODUCTION In this context, this presentation reviews Measures aimed at ensuring and 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, 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 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 Mitigating the Negative Impacts Environmental Permits made requirement for the acquisition of mineral rights Stakeholder Participation Publication of applications at the district and local levels Public hearings 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 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 Political Stability Economic Contributions 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 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.