Dr Samuel Kumi, a Lecturer and Research Development Coordinator, School of Natural Resources, University of Energy and Natural Resources (UENR), has called for an urgent review of certain provisions in the Mining and Minerals Act, to tackle growing problems of speculative developments on mining concessions in the country.
As the cornerstone of the economy, and the highest taxpayer, he said the putting up of speculative buildings and structures concessions impacted negatively and had a huge toll on the profitability of mining companies, engineered conflicts, and caused tensions and disturbances in mining communities.
In an interview with the Ghana News Agency (GNA) on the sidelines of a research update session organised by the School of Natural Resources of the university in Sunyani, Dr Kumi said the Act 2006 (Act 703) remained unclear on speculative developments on mining concessions.
Attended by experts in natural resources, the University organised the day’s session to disseminate findings of some research work on natural resources, conducted by some lectures of the school.
As a nation whose economy depended much on natural resources, Mr Kumi said the speculative activities on mining concessions and continuous resistance of mining activities in local communities had the potential to erode investor confidence.
He said speculative developments had high risk, however, he indicated people in mining communities targeted critical locations of the mines, and strategically plant and erect structures to obtain ‘undue compensation’ from mining companies.’
A review of provisions and application of mining laws on land access and speculative development is recommended to bring clarity to the issue to curb contestations.’
‘Land speculation, as demonstrated, is not just about land hoarding in anticipation of future appreciation of value but can also take the form of rapid improvement in land either by erecting structures or planting crops and trees to enhance the economic value of land for purposes of higher compensation from anticipated acquisition,’ he stated.
Dr Kumi underscored the need for mining companies to be proactive in their land access process, saying declaration of mining area ought to be immediately accompanied by prompt
payment of compensation as required by Act 703.That has the potential to save the mines from experiencing inflated project costs due to compensation payment and protraction of land access, which undermined project schedule and consequently stifle mining investment and its multiplier effect at the regional and national level.
There is also the need for rigorous enforcement of the legislation on mining land access by the regulators too, he stated.
Dr Kumi, however, mentioned high unemployment, poverty, long exploration of project activity, land compensation experiences, mining laws and enforcement issues, lack of knowledge about consequences of speculative development and inconsistencies in the mining regulation regarding compensation regime as major drivers of speculative developments in mining communities.
Earlier, Berchie Asiedu, the Dean of the School of Natural Resources, noted that the nation’s natural resources faced unprecedented challenges of population growth, deforestation, climate change, biodiversity loss, and weak governance.
There is, therefore, a critical need to translate knowledge into actionable solutions, he stated, saying the synergy between academia and industry was not just beneficial, but essential.
Source: Ghana News Agency