The Ghana Chamber of Mines has called for a comprehensive regulatory framework to guide the proposed mandatory Corporate Social Investment (CSI) contributions by mining companies.
The Chamber said without proper structures, the sector risked implementing a system that might not benefit communities or the industry, despite the existing policy under which member companies set aside at least US$1 per ounce of gold earned and one per cent of net profit for hostcommunity development.
Mr Ahmed Dasana Nantogman, Chief Operating Officer of the Chamber, told the Ghana News Agency that the effectiveness of the one per cent mandatory payment would depend on how the funds were managed and distributed.
He made the remarks at a threeday training for editors and senior reporters from the Greater Accra, Western and Upper East Regions at Peduase, on the theme: “Green mining: Best practices and responsible reporting.”
The training was organised by the Ghana News Agency in partnership with the Association of ChinaGhana Mining LBG to help shift media focus from illegal smallscale mining to broader mining sector issues.
Mr Nantogman said that although mining companies currently manage their CSI budgets and choose how to spend them voluntarily, the intention was to introduce a law to regulate the process.
He explained that if Ghanaians agreed to a mandatory one per cent contribution, a clear framework would be needed to ensure the funds were used effectively.
Mr. Nantogman said the current system allowed companies to independently determine their CSI priorities, resulting in inconsistencies in community benefits.
“Over the last decade, sustained corporate social investment by Chamber members, combined with ongoing legal reforms, is gradually reshaping how Ghana’s mineral wealth is shared with host communities,” he noted.
Mr Nantogman said key questions needed answers before implementation.
“So, the one per cent is paid [but] what happens to it? Where does it go? Who controls it? Who runs it? Who are the trustees behind it, and where should it be invested?”
Mr Nantogman warned that without safeguards, the system could face risks of elite capture and weak transparency.
“We don’t want a situation where they pay the money. It goes into a pool, and then some stronger people will come and take it without any record,” he said.
Mr Nantogman said mechanisms must be applied in ways communities perceive as fair, transparent and developmental, strengthening the social licence to operate and the industry’s longterm viability.
He said that proper targeting and oversight of the mandatory contribution system would address community needs more effectively than the current voluntary model.
Mining companies currently support communities through CSI initiatives such as infrastructure, education, health and livelihood projects, but the Chamber said the absence of standardisation had created disparities in benefits.
Mr Nantogman said the Chamber was ready to work with government and stakeholders to develop a robust framework addressing governance of the CSI.
