The Member of Parliament for Juaben, Francis Owusu-Akyaw, has raised concerns over the proposed amendment to the Minerals Income Investment Fund (MIIF) Act, 2018 (Act 978, as amended), warning that it will negatively impact mining communities in Ghana.
The proposed amendment seeks to transfer 80% of mineral royalties, originally managed by MIIF, to the Consolidated Fund to support the government’s development initiatives. This move, according to the Juaben MP, could further under-develop host communities where mining activities take place.
Background on MIIF Act and Its Objectives
The Minerals Income Investment Fund was established under Act 978 and amended in 2020 (Act 1024) during the Akufo-Addo administration. The primary objective of MIIF is to maximize the value of mineral income for national benefit, ensure transparency in mineral revenue management, and develop strategies to mitigate budgetary exposure due to fluctuations in mineral income.
However, the newly formed John Mahama-led government, through its 2025 Budget and Policy Statement, has initiated a further amendment to the legislation. If approved, this change would divert 80% of MIIF royalties to finance the government’s “BIG PUSH” infrastructure agenda.
Concerns Raised by the Juaben MP
During parliamentary discussions on the 2025 Budget on Monday, March 24, Hon. Owusu-Akyaw strongly opposed the amendment, stating that it would deprive mining communities of essential development projects. He questioned the lack of clarity on how the diverted funds would be utilized and whether any portion would be reinvested into the mining sector.
“Is this infrastructure aimed at developing the mining sector from which these funds originate, or is it for unrelated projects? How much will be reinvested to boost mining operations if the majority of the funds are diverted elsewhere?” he queried.
He further argued that the move would lead to neglect of host communities, stressing that the absence of direct investment in mining areas could worsen conditions in those regions. “This is a risky path for the government to take,” he cautioned.
Criticism of Mining Recategorization
In a related development, Hon. Owusu-Akyaw criticized the government’s decision to recategorize mining into small, medium, and large-scale operations. He claimed that most small-scale mining license holders lack adequate space to conduct productive mining activities, while others engage in environmentally destructive trial-and-error methods of alluvial gold mining.
“The solution to illegal mining (galamsey) does not lie in recategorization. Many small-scale license holders under Section 82 of the Minerals and Mining Act, 2006, do not even have land to operate on. Those who do often engage in destructive mining practices,” he stated.
He also argued that some large-scale miners already operate within the medium-scale category without violating any laws, making the reclassification unnecessary. “Why allocate funds for an initiative that does not address the core challenges facing the mining sector?” he questioned.
The concerns raised by the Juaben MP highlight the ongoing debate over the best approach to managing mineral revenue and supporting sustainable development in Ghana’s mining communities.
By Christian Kpesese