Benefit Sharing Arrangements for Mineral Resources in Ghana

The document examines Ghana's mineral revenue system, where the Minerals Income Investment Fund (MIIF) manages state earnings and distributes 20% to the Mineral Development Fund (MDF). It details the allocation of these funds to entities like the Office of the Administrator of Stool Lands (OASL) and the Mining Community Development Scheme (MCDS), while highlighting critical failures in transparency, the inadequacy of community funding, and legal ambiguities in the 1992 Constitution that allow for the misappropriation of royalties by traditional authorities.

• The Ghanaian state collects mineral revenue through fees, taxes, and royalties, including a 5% royalty on total annual revenue from mining operations and an automatic 10% free carried interest in mineral operations.
• The Minerals Income Investment Fund (MIIF) manages all mineral resource revenue and allocates 20% of its total receipts to the Mineral Development Fund (MDF).
• The Mineral Development Fund (MDF) distributes its resources across several entities: 50% to the Office of the Administrator of Stool Lands, 20% to the Mining Community Development Scheme, 13% to the Minerals Commission, 8% to the Geological Survey Department, 4% to the Ministry of Lands and Natural Resources, and 5% for research and training.
• Linguistic ambiguity in Clause 267(6) of the 1992 Constitution has led to the misappropriation of the 25% mineral royalty share intended for traditional councils, with some chiefs using funds for personal projects instead of community development.
• Current allocations to mining communities are insufficient; the Ghana Chamber of Mines estimates that communities need at least 30% of total mineral royalties, whereas the Mining Community Development Scheme (MCDS) currently receives only 4%.
• There is a significant lack of transparency and accountability in the MDF Act, which lacks mandated information disclosure regarding collected royalties, transfers, and specific spending by local authorities.
• The legal framework for local content, specifically L.I. 2431, requires mining lease holders to prioritize Ghanaian products, services, and employees, and mandates the submission of localization programs and procurement plans to the Minerals Commission.
• The mining sector lacks mandatory social responsibility agreements, unlike the forestry sector where such agreements must be worth at least 5% of the stumpage fee.

APA

Martey, D., Godts, R., Akapame, C. K., Ichou, B., & Norteye, R. P. N. S. (2024). Benefit Sharing Arrangements for Mineral Resources in Ghana. ClientEarth. https://www.clientearth.org/media/vf2mdxz1/ghana-mining-briefing-2.pdf

Chicago

Martey, Dennis, Raphaëlle Godts, Clement Kojo Akapame, Benjamin Ichou, and Ruth Pauline Naa Shormeh Norteye. Benefit Sharing Arrangements for Mineral Resources in Ghana. ClientEarth, 2024. https://www.clientearth.org/media/vf2mdxz1/ghana-mining-briefing-2.pdf.

Wikipedia

{{cite report |last1=Martey |first1=Dennis |last2=Godts |first2=Raphaëlle |last3=Akapame |first3=Clement Kojo |last4=Ichou |first4=Benjamin |last5=Norteye |first5=Ruth Pauline Naa Shormeh |title=Benefit Sharing Arrangements for Mineral Resources in Ghana |publisher=ClientEarth |date=June 2024 |url=https://www.clientearth.org/media/vf2mdxz1/ghana-mining-briefing-2.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{martey2024benefit, author = {Martey, Dennis and Godts, Raphaëlle and Akapame, Clement Kojo and Ichou, Benjamin and Norteye, Ruth Pauline Naa Shormeh}, title = {{Benefit Sharing Arrangements for Mineral Resources in Ghana}}, institution = {ClientEarth}, year = {2024}, month = jun, url = {https://www.clientearth.org/media/vf2mdxz1/ghana-mining-briefing-2.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }