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The ranking member on Mines and Energy Committee, Adam Mutawakilu has dismissed President Nana Addo’s suggestion that mining companies are responsible for the low development in communities where they undertake their activities.

The President had indicated that the communities where mining companies in Ghana have operated for decades were mostly underdeveloped.

Addressing the 12th West African Mining and Power Conference in partnership with the Ghana Chamber of Mines, Akufo-Addo questioned why the major mining communities in Ghana do not in any way reflect the revenue mining companies are making as a result of their mining operations there.

“Why is Obuasi not the most beautiful city in Ghana or the world if it hosts the richest Goldmine? Why do Tarkwa and Prestea not look like the Golden towns they are? Why does Akwatia’s appearance not reflect anything about the diamonds that have been taken from the soil all these years,” the President asked.

However, Mr Mutawakilu in an interview on Eyewitness News rubbished these claims, saying they were misplaced.

He pointed out that it was wrong for the government to make such demands when they directly benefit from the activities of these mining companies.

“When the President portrays that underdevelopment is as a result of international mining companies it becomes a very difficult problem. It seems to portray that those communities are suffering because of the international mining company. The youth will now be blaming these mining companies for underdevelopment.

“First and foremost these mining companies are running the business on behalf of their shareholders. They come with a mining agreement, so government sits down and goes through this mining agreement, put out what they want to benefit regarding royalties and the percentage they want. The government will tell them to pay royalties, dividends, corporate tax and when prices of gold go high, there will be windfall tax that government will benefit from. For instance, in 2017, the government received an amount of GHC 3.6 billion so if the government tends to portray that it is the responsibility of mining companies to develop communities it is unfortunate.”

He recounted that in 2016, the NDC government, having considered the need to develop mining communities, passed the Minerals Development Act which requires that 25 per cent of the royalties from mining should be transferred to the Minerals Development Fund.

Mr Mutawakilu, however, said the situation had changed under the current government as it had not yet constituted a board for the Minerals Development Fund.

He also pointed out that the first 25 percent royalties were capped at 12.5%.