Mining houses and
governments can work
together to improve their
individual agendas and
Ghana is one of the best
case studies in Africa to
prove this, according to
Nii Osah Mills, Ghana
minister of land and
natural resources.
“We had the same
challenges as most
other countries,” he told
delegates at the recent
Mining
Indaba in
Cape Town.
“Mining
houses were
not always
willing to pay
their share
of the costs
when it came
to power
and other
issues, while
government was not
necessarily providing
these companies with the
necessary environment
where they could operate
well.”
But, he said, by sitting
down and negotiating,
the situation in the
country today has changed
significantly and there are
firm partnerships in place
between the government
and the mining sector.
“We re-negotiated
deals, we listened to what
they had to say and they
listened to us. We came to
agreements,” he said. “We
sorted out our differences.
So in cases where mining
houses were simply not
paying their
dues we
were firm,
while they
explained the
necessity of
having agile
agreements
that could
adapt to
market place
changes.
Both parties
had to give in somewhat
and everyone gained.”
African governments
need to understand the
importance of mining and
create an environment
where mines can operate
effectively.
“We have to meet the
energy demands of mining
houses. Power delivery has
to increase. We cannot
expect to ask for more
taxes when they are not
adequately powered to
perform their operations.
At the same time mining
houses cannot expect to
not pay cost-related tariffs.
Unless you are willing
to pay for what you use
governments can’t invest in
better infrastructure.”
He said in Ghana
progress was being made
by working together
towards long-term goals
where both government
and mining houses would
benefit.
Kerfalla Yansane,
minister of mines and
geology in Guinea, said
there were many lessons to
be learnt from Ghana.
“The message that
there are no free lunches
– not for government or
for mining houses or for
communities for that
matter – is at the heart of
it,” he said.
INSERT
There are no free
lunches — neither for
government nor for
mining houses.
