sharing in governance of extractive industries

The complexity of Mining Land Compensation and Ground Rent Payments in Ghana

Land acquisition for any purpose has been difficult in many parts of the world. The situation is worst when it comes to acquiring land for mining and other commercial activities, apart from paying to obtain the land for a certain period, one also pays compensation for any property of commercial or culturally value. Annual ground rents are also paid to institutions and land owners. This article divulges the complex nature of land acquisition and compensation processes mining companies go through from development throughout the mine life.

What The Law Says

The laws governing land acquisition for mining purposes in the Ghana are the Mineral and Mining Act, 2006 (Act 703) and the 1992 Constitution. Before the enactment of the Act 703, 2006, the basic law, which regulated mining activities in the country, was the Mining and Minerals Law, 1986 (PNDCL 153). There were also other associated legislation and amendments, but all have been repealed by the Act 703, 2006. Mineral rights in Ghana are vested in the state. Section (1) of the Mineral and Mining Act, 2006 (Act 703) states:
Every mineral in its natural state in, under or upon land in Ghana, rivers, streams, water-courses throughout the country, the exclusive economic zone and area covered by the territorial sea or continental shelf is the property of the Republic and is vested in the President in trust for the people of Ghana.
The ownership of mineral resources is vested in the President and held in trust for the citizens of Ghana. The state grants these rights to mining companies through concessions or permits.

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Comment by Bazira Henry on November 29, 2018 at 14:06

Felix thanks for the comment. Such a model could for example provide the PAPs with the option of investing 40% of their compensation or just the land itself or its value as equity in the companies business. This will require companies' acceptance of such an arrangement or government presenting it to companies as a prerequisite for licensing

Comment by Felix Adaania Kaba on November 23, 2018 at 9:34
I don’t think corporations will undermine this great idea if it’s a win win situation. Many of the PAPs take huge compensations and spend mostly on things that have little or no returns. E.g a farmer taking compensation money to buy a private car and then use the other amount to fuel and maintain the car. A paltry amount is reserved for his upkeeping.

If you can come up with a model that allows the amount paid as compensation be used for a business that brings returns will be a great idea.
Comment by Bazira Henry on November 21, 2018 at 10:37

We are championing an argument that compensation and resettlement of project-affected persons (PAPs) in its current form does not secure PAP's livelihoods. There is need for a paradigm shift in the manner in which compensation and resettlement is handle to include PAPs offering their land as equity to the oil, gas and mining investments. This is a campaign that obviously will be undermined by corporations, but is one that needs to be addressed by host countries in public interest.


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