After reading a story about a post-budget meeting between Dr Seth Terkper, the deputy finance minister, and mining companies, in the business web-page of www.ghanaweb.com, I couldn't help but wonder, why, in the age of social networks and online campaign groups such as Avaaz and Care2, our leaders are still so apologetic, when they take steps to protect our nation's interests - by finding ways around unfair agreements, which could only have been secured through corruption at the highest levels, by foreign investors.
Perhaps the question we ought to pose to our current rulers, is: Are they not aware of the fact that the bulk of the citizens of the free world are fed up with corporate greed?
I will reproduce the said www.ghanweb.com story below, in a moment, dear reader - but before doing so, would like to encourage our current leaders to ask Ghana's ambassador to the US, to invite the leading lights in online campaign groups such as Earthworks; Avaaz and Care2, to visit Ghana, to help them deal with arrogant foreign mining companies.
Since no one who visits our country will fail to be impressed by our nation and its people, they should be introduced to all the anti-mining civil society groups in Ghana, when they get here.
They should then be taken round to the mining areas in Ghana, where those foreign mining companies have their concessions, by the anti-mining civil society groups.
After that, they should then be given copies of the so-called "stabilisation agreements" (rip-offs would be a more suitable label for those shabby, one-sided and amoral legal documents), to read.
I am pretty sure that they will be so incensed by what they read, that they will immediately get online campaigns against the rip-off of our nation, by those so-called foreign investors going - targeted at the overseas shareholders of those selfsame mining companies.
Ghana does not need foreign investors who aren't ethical operators - and who above all don't see the long-term benefits of fair and mutually beneficial relationships between host nation and foreign investor.
In any case, there is no country as congenial to live in and to invest in if one is a genuine foreign investor, in all of sub-Saharan Africa - so if any mining company wants to leave, we should encourage them to do so: as in reality they are actually only ripping Ghana off.
Perhaps we would be better off helping indigenous small-scale mining companies to merge with one another to become bigger entities, and train them to mine in a more environmentally responsible fashion. At least the bulk of the profits they make will stay here.
The Ghanaian mining companies can also go into joint-ventures with Brazilian; Russian; Indian; Chinese and South Korean mining companies - all of them happy to have the opportunity to invest in Ghana.
Let us start thinking of getting a gold refinery built here. Did the far-sighted Nkrumah not start building one before he was overthrown by traitors in the pay of the CIA?
We can also build further on the Precious Minerals Marketing Company's (PMMC) experience in selling gold - and aim to turn it into a major gold market to which buyers of gold from around the globe can come to do business. At least it will help fill the Accra Movingpick Ambassador hotel.
Here's the said www.ghanaweb.com business web-page story entitled,
"Minister clarifies mining taxes". It was apparently sourced from the Business and Financial Times - please read on:
"Minister clarifies mining taxes
New tax measures for mining companies are part of a fiscal rationalisation plan for the natural resources sector of the economy, says Seth Terkper, Deputy Finance Minister.
He told representatives of mining firms at a pwc budget forum in Accra that the new taxes on miners “are not meant to be anti-investment” nor kill the industry.
Next year, mining firms will pay 35 percent corporate tax, a ten-percentage-point increase over the current rate, and be subject to an extra 10 percent windfall tax. A new capital allowance rate of 20 percent for five years will also kick in -- to replace the current rate of 80 percent.
“The changes in the taxes are part of a rationalisation plan. Later on, other natural resource sectors will be brought on board. So, it’s not about targetting mining companies; and they are not meant to be anti-investment,” Terkper said.
He said it is the government’s intention to review its involvement and interest in the mining sector, and it has been engaging with miners on the changes it intends to bring about.
A national re-negotiation team has been set up, according to Finance Minister Kwabena Duffuor, to review the fiscal regime and mining agreements -- “with the view to ensuring that the country benefits adequately and fairly from the gains in the mining sector.”
Terkper assured that the government would respect so-called “stability agreements” with miners; but -- like it’s been able to do in the past -- would try to achieve a consensus on some of the changes in spite of the agreements.
The buoyant prices of metals are a key motivation of the government as it introduces these new measures. Gold prices have more than quintupled in the last decade, and the industry has flourished while mining communities remain poor and underdeveloped.
“During the recent global financial crisis, prices of gold reached their peak levels ever. Yet the country did not benefit at all from the price-hikes,” Duffuor said as he announced the additional tax measures last week.
Many have welcomed the changes. The Ghana Mineworkers’ Union said in a statement: “We are particularly happy with the introduction of the windfall profit tax for mining companies...We hope that the government will be resolute in its successful implementation.”
Another lobby, National Coalition on Mining, noted: “We view these steps as part of a set of actions that are urgently needed to improve the contribution of the sector to the economy. The government should proceed with immediate implementation of new taxes and the critical review of the fiscal regime.”
But miners have protested, arguing the changes will be a disincentive to investment in the sector. Tony Aubyn, president of the chamber of mines, reacted: “This stance will likely discourage investment and the expansion of current projects.
“We are not averse to government seeking to maximise its benefits from mining, but we should not do it in a way that will kill the industry.”
Felix Addo, Senior Partner at pwc, warned of the signals the new measures would send to investors -- particularly the attempt to renegotiate contracts.
“When investors bring in their capital and resources to invest here, they want to be assured that the rules of engagement will not be changed a few years after they have established their businesses.”
Source: BFT"
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