The Omanhene of the Dormaa Traditional Area, Osagyefo Oseadeeyo Dr. Agyemang Badu II, has announced his intent to invite mining companies into his region to enhance employment and development.
In a video observed by GhanaWeb, Agyemang Badu II emphasized the importance of mining as a catalyst for development during a public speech, while also insisting that mineral extraction be carried out responsibly and equitably.
He specified several conditions for companies interested in mining in Dormaa, including an agreement to share 50% of the profits with the state.
“This is breaking news. It is time for me to allow those willing to meet my conditions to extract our resources so that our President Nana Addo Dankwa Akufo-Addo can reap larger profits. It won’t be like other situations where they take 93% and the state gets only 7%, no! In Dormaa, once you recover your capital, you will split the profit in half, giving 50% to Nana Addo Dankwa Akufo-Addo and keeping the remainder as your profit,” he stated.
He noted that the profits allocated to the state would greatly aid Dormaa’s development through royalty payments.
He disclosed that several companies have already agreed to the proposal and have made significant payments to the Dormaa state.
“The money paid to Dormaa is non-refundable. As I speak, the money is in our Commercial Bank (account), and my chiefs know how much we have. In due time, it will be made public, and we will decide what to use the money for,” he stated.
“People of Dormaa will prosper during my reign. If possible, I want to start before the year ends; every child born in Dormaa will receive payment, whether native or not, as long as the child is born on Dormaa land,” he stated.
Agyemang Badu II has consistently voiced his concerns over the years regarding Ghana’s mineral royalties, criticizing what he views as inadequate gratuity payments made by mining companies to the state.
If the stool is taking 50% and government of Ghana by law takes 10% free carry shares plus 6% royalty which is about 12% because of the of production cost which is about 50% or more , plus gold export duty/cost by custom and social responsibilities cost, what will be left for a prospective investor.
I don’t think this procedure will be attractive to any investor .
If possible introduce this to the small scale miners and the community miners and see if they will accept it.
Rather government of Ghana can raise more funds through the MIIT to support Ghanaian small and large scale miners to hire more professionals to make more money to stay in Ghana to support the stabilization of the dollar.
Also let find a way to stop some government officials from illegally taking gold concessions from local Ghanaian businessmen and selling it for few dollars to foreigners brokers. I a victim but have spent a lot of money through my local and foreign lawyers to press civil and criminal action against them.
I suggest we should form local pressure groups to deal with irregularities in mining , Ghana water and ECG which can bring more revenue to support our budget.