The Ghana Mineworkers’ Union (GMWU) has renewed calls for the current 20% share of annual mineral royalties allocated to the Mineral Development Fund to be increased to at least 50%.

Describing the current allocation by government as lopsided, the union is also expecting that 50% of the proposed 50% allocation to the MDF is channeled directly into mining community development.

“With this lopsided sharing model of the country’s mineral royalties, there is no gainsaying that the infrastructural development efforts of mining communities can never be achieved if nothing drastic is done about the current sharing model”, said the General Secretary of GMWU, Abdul-Moomin Gbana at the Union’s National Executive Council Meeting held in Accra.

Report on Mineral Development Fund

The Ghana Chamber of Mines 2020 report revealed that producing mining companies paid a total of ¢1.4 billion in mineral royalties to the Ghana Revenue Authority. Out of the amount, only 20% (¢278 million) of the above mineral royalties is expected to go to the MDF.