Member of Parliament for Akim Oda, Alexander Kwesi Acquah, has expressed astonishment at the meager sum of just over GH¢6 million that has accrued to the Kotoku Traditional Council as royalty from Newmont’s mining activities in the Abirem area.
He stated, “The people of the Akim Kotoku enclave would be deeply disappointed and would certainly not accept these figures.”
Responding to an urgent question regarding the royalties received by the Kotoku Traditional Council from Newmont’s mining operations, the Minister for Chieftaincy and Religious Affairs, Stephen Asamoah Boateng disclosed that no money has been paid directly to the council yet.
He explained, “Due to chieftaincy disputes in the Akim Kotoku Traditional area, the Attorney General advised the Office of the Administrator of Stool Lands to invest their share of royalties until further notice.”
According to the Minerals and Mining Act 2006, Act 703, Session 25, as amended, mining companies are required to pay royalties at a rate prescribed by the state.
The Minerals Income Investment Fund Act 2018, Act 978, also established the Minerals Income Investment Fund (MIIF) to receive mineral royalties on behalf of the Republic of Ghana from mining companies.
The Minister clarified that Newmont remits mineral royalties payments to MIIF, and so there have been no direct payments to the Akim Kotoku Traditional Area.
He disclosed that the principal investments made by Newmont in the area amounted to GH¢5 million, as advised by the Attorney General, with an additional accrued interest of about GH¢1.22 million.
He added that the total amount accrued so far is GH¢6.23 million, in addition to a ledger balance of GH¢1.5 million as of 21st July 2023.
The Akim Oda MP, however, argued that the quoted figure is far too low, considering it is meant to cover investments of over 11 years.
He stated, “One would have thought that we would have a substantial amount in the coffers and efforts to have it released to support the development of Kotoku.”
“But the Minister promised to get some more facts because he needs to go into detail to tell us where, and the kind of investments that were made.”
“He also needs to tell us how much has accrued to the Traditional Council annually because expectation is so high for an entity that has operated for over 11 years.”