RESOLUTION ADOPTED AT THE 9^TH QUADRENNIAL DELEGATES CONFERENCE ON FRIDAY JULY 20, 2007 AT THE COCONUT GROVE REGENCY, ACCRA

1.0              NATIONAL INTEREST IN MINING COMPANIES

 Noting that:

 Ghana as a rich mining country has attracted world class multi-national companies:

 Further noting that:

§         The 90-10 equity share in favour of multi-national companies is not healthy for the overall development of the country, and aware that for example  Newmont operates a mine in Peru called Mineral Yanochocha and has 51.53% equity whilst the local Peruvian Company, Compania de Minas Buenevantura owns 43.64%, a development which ensures that a good percentage of mining receipts remain in that country;

 §         In Ghana, no indigenous Ghanaian Company is engaged in large scale mining activities and thus only a small percentage of mining receipts remain in this country;

§         The current mining law and investment code, allow Mining Companies to repatriate 80% of mineral receipts offshore, a situation which is attractive to these foreign investors but detrimental to the development of our dear nation;

Believing that:

 The mineral wealth of our nation is not being exploited to the benefit of Ghana and Ghanaians;

 Therefore resolve that

 Government takes a second look at the over-generous incentives offered to these foreign investors especially in the mining sector of the economy to ensure that the country derives maximum benefit from mining operations.  Accordingly, government is being called upon to make the necessary amendments to the current mines and minerals law.

2.0              JOB CREATION

 Noting that:

 The mining industry accounts for just 1% of employment in the country but has the capacity to create more employment;

 Further noting that:

 §         Mining Companies spend huge sums of money to import tyres, overalls, protective clothing and other consumables some of which can be manufacture locally;

 §         The nation has a large rubber plantation which can provide the needed raw material for tyre/rubber manufacturing;

 §         Mining Companies employ the services of hospitality service providers which are run by expatriates;

 §         Mining Companies pooled resources to purchase a barge for power generation to support mining activities;

 Believing that

            The mining industry has the real potential of creating additional jobs;

             Therefore Resolve that

§         Mining Companies should pool resources to establish a new tyre factory to produce the tyres/rubber the industry requires;

 §         Government should as a matter of priority and through policy direction ensure that mining activities create the right linkages with the economy to generate more employment.

 3.0       EXPATRIATION

             Noting that:

 Expatriation brings benefits such as technology and skills transfer when the right calibre of experts come in as expatriates;

             Further Noting that:

 §         Positions in the mining industry such as Shift Supervisors, Pit Supervisors, Workshop Supervisors are held by expatriate staff;

 §         Expatriate employees within the industry keep on increasing by the day;

 §         Expatriate cost is a major cost to mining companies;

 §         Expatriates who come in as temporary employees and/or finally perpetuate their stay;

 §         Expatriates with questionable skills and background are engaged as experts;

 Believing that:

 There are many Ghanaian professionals who are capable of filling supervisory and middle management roles in the industry;

 Therefore Resolves that:

 §         Government through appropriate institutions such as the Mines Department, Minerals Commission and the Immigration authorities should review the current expatriate quota system to stem the tide of expatriate influx;

 §         A strict time frame should be given for the transfer of skills and competencies to Ghanaians.

 4.0       MINING COMMUNITIES

 Noting that:

 Communities within which mines are located should be seen to have benefited from the mineral wealth that posterity has endowed them with;

 Further noting that:

 §         After years of mining, Obuasi, Tarkwa, Bibiani, Konongo and others have not seen any major infrastructural change as a result of the benefits of mining in these communities;

 §         Old mining communities such as Prestea,  Abosso,  Awaso, Ayanfuri and Bonte have seriously deteriorated ;

 §         Efforts being made by some mining companies through their community development initiatives are not enough to deal with the unemployment, poverty and poor infrastructure in these communities;

 Believing that:

 Mining communities should significantly benefit from mining operations in terms of infrastructural development and employment creation;

 Therefore resolve that:

 §         As part of the requirements for Companies seeking mining rights, the Government should ensure that these Companies present a “Community Development Plan” for execution as part of their sustainable development agenda;

 §         60% of Royalties paid by mining companies should go into a fund meant to support infrastructural development in these mining communities;

 §         Government should put together a think tank comprising of stakeholders to utilize the funds for the development of mining communities;

 §         Mining Companies should pool resources to set up Youth Training Centers to give the youth employable skills;

 §         Government should as a matter of urgency rehabilitate the Tarkwa - Dunkwa - Obuasi and Tarkwa-Damang- Twifu Praso roads;

 5.0       HUMAN CAPITAL DEVELOPMENT

 Noting that:

 Human Capital development is an important pre-requisite for development and poverty reduction;

 Further noting that:

 §         The Union has instituted an endowment fund that caters for two hundred (200) dependants of its members in second cycle schools;

 §         The Union intends developing Information Technology centers for members and their dependants at Obuasi and Tarkwa;

 §         University of Mines and Technology as a tertiary institution if when resourced adequately could take the centre stage in the human capital development agenda;

 Believing that:

 Mining companies as major stakeholders in the industry have a role to play in the Human Capital Development issue;

 Therefore resolve that:

 §         Mining Companies operating in Ghana should pool resources to assist on annual basis University of Mines and Technology to enable it take the Centre stage in the human development initiative;

 §         Government should address the infrastructure deficit between University of Mines and Technology and the other public universities through normal apportionment and not only apportionment from the GET Fund;

 §         Government should through the Ministry of Education partner Mining Companies to build a modern Technical Institution within the Tarkwa-Bogoso area to provide employment skills to the youth for national development;

§         The Mining Companies through the Ghana Chamber of Mines should on annual basis contribute to support the educational endowment fund of the Union as part of their contribution to the human capital development initiative.

 6.0       END OF SERVICE BENEFIT (ESB)

 Noting that:

 The End–of–service benefit that was frozen has been re-instituted in some organizations;

 Further noting that:

 §         The future well being of mineworkers cannot be adequately catered for under the existing provident fund schemes;

 Believing that:

 The mining industry owes it a responsibility to ensure that the mineworkers have a secured future;

 Therefore resolve that:

 Industry should constructively engage the Union in a bid to re-introduce the End-of-service benefit as a matter of urgency.

7.0              EMPLOYABLE SKILLS BEYOND MINING

 Noting that:

 The erstwhile State Gold Mining Company (SGMC) and Ashanti Goldfields (AGC) spent millions of dollars to train high quality professionals which the current mining companies are benefiting from;

 Further noting that:

 The training philosophy of the current operating mines is to train for specific needs of their operations;

 Therefore resolve that:

 ·   Considering the non-renewable nature of mineral resources, mining companies should re-engineer their training programmes to provide mineworkers with other employable skills beyond the life of mine;

 ·   To this end Mining Companies should as a matter of urgency set up employable development funds to finance such training/re-training;

 8.0              GROWING INCOME INEQUALITIES

 Noting that:

 There are growing income inequalities in the mining industry a situation which is unjustifiable;

 The current salary disparities between a Ghanaian Senior Officer and that of an expatriate which is in the ratio of 1:70 is untenable and unacceptable;

 Therefore resolve that:

The growing income inequalities in the industry calls for urgent resolution.  Accordingly, there should be a major job content and evaluation analysis exercise to place the right value on jobs mining employees perform in the mining industry;

9.0              SURFACE MINING  AND LAND USE

 Noting that:

Large tracts of lands are ceded to mining companies in a predominantly agrarian economy;

 Believing that:

 §         Extensive surface operations have a long term environmental and economic implications for communities affected by mining operations;

 §         The future of mining in this country lies with underground mining and not surface mining;

 Therefore resolve that:

 Government pays attention to and encourage foreign direct investment into underground mining rather than promoting surface mining as the case is currently.

 10.       OCCUPATIONAL HEALTH AND SAFETY

 Noting that:

 Mining Companies have high safety standards regarding the operations;

 Further noting that:

 Mineworkers are exposed to physical, chemical, biological and ergonomic hazards  as a result of new mining methods/technology;

 Believing that:

             The health of mineworkers cannot be toiled with;

             Therefore resolve that:

 §         All mining companies institute proper occupational health monitoring programmes which comprise of occupational hygiene monitoring and medical surveillance for all mineworkers on annual basis;

 §         The Ghana Chamber of Mines and its affiliates should as a matter of urgency engage the services of occupational physicians to handle the occupational health needs of mineworkers;

 11.       GHANA CONSOLIDATED DIAMONDS (GCD)

 Noting that:

 Ghana Consolidated Diamonds is the only mine in Ghana which is wholly owned by the state in trust for the people of Ghana;

 Further noting that:

 §         Production of the company is at a halt because plant and equipment are obsolete due to lack of capital injection;

 §         The Company is in debt to the June of $25,000,000;

 §         Employees have not been paid for the past seven (7) months;

 §         10 employees have committed suicide as a result of the non payment of salaries;

 Believing that:

 §         The current tributer mining is enriching the pockets of politicians, traditional rulers and other powerful powers that be to the detriment of revamping the mine;

 §          The mine has a potential for generating revenue for the nation as well as employment creation;

  Therefore resolve that:

 §         Government as a matter of urgency should ensure the payment of employees salary arrears;

 §         Government should speed up the on-going due diligence exercise with a view to partnering a strategic investor to revamp the mine;

 §         Political influences which are affecting the speedy conclusion of negotiations with investors are done away with, for the lives of mineworkers and their dependants cannot be toyed with.

12.       GRANITES AND MARBLES

 Noting that:

 Granites and Marbles was unable to meet demands by Ghana@ 50 committee to provide tiles; 

 Further noting that:

 ·    Social Security National Insurance Trust (SSNIT) owns over 80% of the Company;

 ·    Granite and Marbles is a viable company;

 ·    The Company requires capital injection to be profitable;

 Believing that:

 Social Security National Insurance Trust (SSNIT) has got the capacity to raise capital      

for  the business;

Therefore resolve that:

 Social Security National Insurance Trust (SSNIT) should pay closer attention to the operations of Granites and Marbles with a view to recapitalizing it.