Business News of Monday, 14 July 2003

Source: GNA

Mining companies provide 100 billion cedis to support communities

Kumasi, July 14, GNA- Mining companies provided more than 100 billion cedis towards the development of communities within which they operate between 2001 and 2002.

Mrs Joyce Wereko-Brobby, Chief Executive of the Ghana Chamber of Mines, said the contributions were made as part of the industry's corporate social responsibility activities.

She made this known during interactions between members of the Chamber and journalists in Kumasi at the weekend.

Mrs Wereko-Brobby said very little of the royalties paid by the companies actually went to the host communities as the state appropriated the bulk of it for development.

The minimal portions that were returned to the district assemblies were not used for visible development projects but rather for recurrent expenditure.

She said the chamber was also active in its support for the Presidential Special Initiative (PSI) on forestry. The companies, she said, had donated over 20,000 seedlings and are ready to direct more resources to help improve forest reserves. "We are committed to providing support for the reforestation of degraded forests, in addition to reclaiming mined-out areas." Mrs Wereko-Brobby said out of the country's land area of 240,000 square kilometres, 31,273 square kilometres or 13 percent has been granted to large scale mines for reconnaissance, prospecting and active mining.

Indeed the actual mining operations in the country cover only 4,304 square kilometres or less than two percent. She said, that notwithstanding, the chamber was much concerned about the preservation and sustainable management of the environment.