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MINERALS
DEVELOPMENT FUND ACT, 2016
Act
912
ARRANGEMENT OF SECTIONS
Section
Minerals Development Fund
1.
Establishment of the Minerals
Development Fund
2.
Object of the Fund
3.
Sources of money for the Fund
4.
Bank account for the Fund
5.
Application of the Fund
Management of the Fund
6.
Governing body of the Fund
7.
Functions of the Board
8.
Tenure of office of members
9.
Meetings of the Board
10.
Disclosure of interest
11.
Establishment of committees
12.
Allowances
13.
Ministerial directives
Administrative Provisions
14.
Appointment of Administrator of
the Fund
15.
Appointment of other staff
Mining Community Development
Scheme
16.
Establishment of the Mining
Community Development Scheme
17.
Object of the Scheme
18.
Sources of funds for the Scheme
19.
Local Management Committee
20.
Management of the Scheme
Financial Provisions
21.
Disbursement of the Fund
22.
Expenses of the Fund
23.
Accounts and audit
24.
Financial year
25. Annual
reports
Miscellaneous Provisions
26.
Regulations
27.
Interpretation
28.
Transitional provisions
ACT
OF THE PARLIAMENT OF THE
REPUBLIC OF GHANA
ENTITLED
MINERALS DEVELOPMENT FUND
ACT, 2016
AN ACT to establish the Minerals
Development Fund, to provide
financial resources for the
benefit of mining communities
and for related matters.
DATE OF ASSENT:
PASSED by Parliament and
assented to by the President:
Minerals Development Fund
Establishment of the Minerals
Development Fund
1. (1) There is established by
this Act a body corporate to be
known as the Minerals
Development Fund.
(2) The Fund may, for the
performance of its functions,
acquire and hold movable
property or immovable property
and may enter into a contract or
any other transaction.
(3) Where there is hindrance to
the acquisition of property, the
property may be acquired for the
Fund under the State Lands Act,
1962 (Act 125) and the cost
shall be borne by the Fund.
Object of the Fund
2. The object of the Fund is to
provide financial resources for
the direct benefit of
(a)
a mining community;
(b)
a holder of interest in land
within a mining community;
(c)
a traditional and local
government authority within a
mining community; and
(d)
an institution responsible for
the development of mining.
Sources of money for the Fund
3. The sources of money for the
Fund include
(a)
twenty percent of mineral
royalty that is received by the
Ghana Revenue Authority on
behalf of the Republic from
holders of mining leases in
respect of the mining operations
of the holders,
(b)
moneys approved by Parliament
for the Fund,
(c)
grants, donations, gifts and
other voluntary contributions,
(d)
moneys that accrue to the Fund
from investments made by the
Board, and
(e)
other moneys that may become
lawfully payable to the Fund.
Bank account for the Fund
4.
(1) The moneys of the Fund shall
vest in the Board.
(2) The Board shall open a bank
account on behalf of the Fund
with the approval of the
Minister responsible for
Finance.
(3) A person who receives money
intended for the Fund shall, not
later than the next business
day, pay the money into the bank
account opened under subsection
(2).
Application of the Fund
5.
For the purpose of achieving the
object of the Fund, moneys for
the Fund shall be applied to
relevant activities that the
Board may deter- mine, to
(a)
redress the harmful effects of
mining on affected communities
and persons;
(b)
promote local economic
development projects and
alternative livelihood projects
in communities affected by
mining activities;
(c)
undertake minerals related
research and development of
capacity in human resource for
mining institutions and
institutions that train manpower
for the regulatory
institutions;
(d)
undertake projects aimed at
promoting the mining sector; and
(e)
support the policy planning,
evaluation and monitoring
functions of the Ministry in
respect of mining related
activites.
Management of the Fund
Governing body of the Fund
6.
(1) The governing body of the
Fund is a Board comprising
(a) a chairperson,
(b)
one representative of the
following Ministries not below
the rank of a Director:
(i) Ministry of Local Government
and Rural Development,
(ii) Ministry of Environment,
Science, Technology and
Innovation, and
(iii) Ministry of Finance,
(c)
the Chief Director of the
Ministry of Lands and Natural
Resources,
(d)
the Chief Executive Officer of
the Minerals Commission,
(e)
the Executive Secretary of the
Lands Commission,
(f)
the Administrator of Stool
Lands,
(g) a representative of the
Ghana Chamber of Mines,
(h)
a traditional ruler from a
mining community nominated by
the National House of Chiefs,
and
(i)
one other person, who is a
woman, nominated by the
Minister.
(2) The members of the Board
shall be appointed by the
President in accordance with
article 70 of the Constitution.
Functions of the Board
7. The Board is responsible for
the management of the Fund and
for that purpose shall
(a)
ensure the proper and effective
performance of the functions of
the Fund;
(b)
pursue policies to achieve the
object of the Fund;
(c)
collect or arrange to be
collected, through procedures
determined by the Minister,
moneys lawfully due to the Fund;
(d)
ensure accountability of the
moneys of the Fund by defining
appropriate procedures for
accessing and monitoring the
Fund;
(e)
in consultation with the
Minister, prepare and publish in
a daily newspaper of national
circulation the criteria for the
disbursement and utilisation of
the moneys from the Fund;
(f)
disburse moneys from the Fund
generally in accordance with
section 21;
(g)
invest some of the moneys of the
Fund in safe securities that the
Board considers financially
beneficial to the Fund;
(h)
review requests for moneys from
the Fund and make
recommendations to the Minister;
(i)
receive and examine reports from
designated persons or
institutions in respect of
financial assistance granted
those persons;
(j)
make recommendations for the
formulation of policy on the
percentage level of mineral
royalty payable to the Ghana
Revenue Authority; and
(k)
perform any other function
assigned to the Board under this
Act or incidental to the
achievement of the object of the
Fund.
Tenure of office of members
8.
(1) A member of the Board shall
hold office for a term of four
years and is eligible for
re-appointment for another term
only.
(2) Subsection (1) does not
apply to a person who is
appointed under paragraphs
(c), (d), (e) and (f)
of subsection (1) of section 6.
(3) A member of the Board may at
any time resign from office in
writing addressed to the
President through the Minister.
(4) A member of the Board who is
absent from three consecutive
meetings of the Board without
sufficient cause ceases to be a
member of the Board.
(5) The President may by letter
addressed to a member revoke the
appointment of that member.
(6) Where a member of the Board
is, for a sufficient reason,
unable to act as a member, the
Minister shall determine whether
the inability would result in
the declaration of a vacancy.
(7) Where there is a vacancy
(a)
under subsection (3) or (4) or
section 10(2),
(b)
as a result of a declaration
under subsection (6), or
(c)
by reason of the death of a
member,
the Minister shall notify the
President of the vacancy and the
President shall appoint another
person to fill the vacancy.
Meetings of the Board
9.
(1) The Board shall meet at
least once every three months
for the despatch of business at
the times and in the places
determined by the chairperson.
(2) The chairperson shall at the
request in writing of not less
than one third of the membership
of the Board convene an
extraordinary meeting of the
Board at the place and time
determined by the chairperson.
(3) The quorum at a meeting of
the Board is seven members of
the Board or a greater number
determined by the Board in
respect of an important matter.
(4) The chairperson shall
preside at meetings of the Board
and in the absence of the
chairperson, a member of the
Board elected by the members
present from among their number
shall preside.
(5) Matters before the Board
shall be decided by a majority
of the members present and
voting and in the event of an
equality of votes, the person
presiding shall have a casting
vote.
(6) The Board may co-opt a
person to attend a meeting of
the Board but that person shall
not vote on a matter for
decision at the meeting.
Disclosure of interest
10.
(1) A member of the Board who
has an interest in a matter for
consideration shall
(a)
disclose the nature of the
interest and the disclosure
shall form part of the record of
the consideration of the matter;
and
(b)
not be present at, or
participate in the deliberations
of the Board in respect of the
matter.
(2) A member ceases to be a
member of the Board if that
member has an interest in a
matter before the Board and
(a)
fails to disclose that interest;
or
(b)
is present at or participates in
the deliberations of the matter.
(3) The Board may revoke or
nullify a decision on a matter
that is arrived at during
delibrations if a member
(a)
contravenes subsection (2), and
(b)
benefits from the contravention.
Establishment of committees
11.
(1) The Board may establish
committees consisting of members
of the Board or non-members or
both to perform a function.
(2) A committee of the Board is
advisory unless the Board
delegates its power to the
committee.
(3) A non-member of the Board
who is appointed to a committee
of the Board shall depose to an
oath of confidentiality.
Allowances
12.
Members of the Board and members
of a committee of the Board
shall be paid the allowances
approved by the Minister in
consultation with the Minister
responsible for Finance.
Ministerial directives
13.
The Minister may give directives
to the Board on matters of
policy and the Board shall
comply.
Administrative Provisions
Appointment of Administrator of
the Fund
14.
(1) The Board shall, in
consultation with the Minister,
appoint an officer as the
administrator of the Fund.
(2) The Administrator is
responsible to the Board in the
performance of the functions
relating to the Management of
the Fund.
(3) The Administrator shall hold
office subject to the terms and
conditions specified in the
letter of appointment.
Appointment of other staff
15.
(1) The President shall, acting
in accordance with article 195
of the Constitution, appoint
staff that are necessary for the
proper and effective performance
of the functions of the Fund.
(2) The Board may engage the
services of advisers or
consultants as determined by the
Board.
(3) Other public officers may be
seconded to the Fund.
Mining Community Development
Scheme
Establishment of the Mining
Community Development Scheme
16.
(1) There is established by this
Act a Mining Community
Development Scheme for each
mining community.
(2) Where before the
commencement of this Act a
Mining Community Development
Scheme exists in a mining
community, that Scheme shall be
deemed to be a scheme
established under subsection
(1).
Object of the Scheme
17.
The object of the Scheme is to
facilitate the socio-economic
development of communities in
which mining activities are
undertaken and that are affected
by mining operations.
Sources of funds for the Scheme
18.
The sources of funds for the
Scheme are
(a)
mineral royalties under section
21 (3)(b);
(b)
moneys that the Fund may receive
under section 3(c); and
(c)
donations made by mining
companies and other related
business entitities.
Local Management Committee
19.
(1) Without limiting section II,
the Board shall establish a
Local Management Committee for a
mining community.
(2) A Local Management Committee
established under subsection (1)
shall comprise
(a)
the Chief Executive of the
District Assembly of the mining
area for which the Local
Management Committee has been
established or the
representative of the Chief
Executive,
(b)
traditional rulers of the mining
community,
(c)
one representative of
(i) the District Office of the
Minerals Commission nominated by
the Chief Executive Officer of
the Minerals Commission, and
(ii) each mining company within
the district,
(d)
one representative of an
identified women's group in the
community, and
(e)
one representative of an
identified youth group in the
community.
(3) A person in the community
appointed by the Board in
consultation with the District
Assembly and traditional
authorities of the mining
community shall be the
chairperson of the Local
Management Committee.
(4) The person appointed under
subparagraph (i) of paragraph
(c) of subsection (2) shall
be the secretary to the Local
Management Committee.
(5) A Local Management Committee
shall perform the functions
assigned to it by the Board.
(6) Despite subsections (1) and
(3), the management of a Mining
Community Development Scheme,
deemed to be established under
this Act by section 16(2) shall
serve as the Local Management
Committee of that scheme.
Management of the Scheme
20.
(1) A Local Management Committee
shall administer and operate the
Scheme within the mining
community for which the
Committee was established.
(2) The Board shall determine
the modalities for the
disbursement of funds to a Local
Management Committee for its
approved activities.
Financial Provisions
Disbursement of the Fund
21.
(1) The Board shall disburse
moneys from the Fund through the
bank accounts of the Fund as
provided under this section.
(2) The Board shall disburse
moneys from the Fund for goods
and services that form part of
the Annual Expenditure
Programme.
(3) Subject to paragraph (e)
of section 7, the moneys
received by the Fund from
mineral royalty payments made to
the Ghana Revenue Authority
shall be disbursed as follows:
(a)
fifty percent of the moneys
shall be allocated to the Office
of the Administrator of Stool
Lands and disbursed as
prescribed by law;
(b)
twenty percent of the moneys
shall be allocated to the Mining
Community Development Scheme;
(c)
four percent of the moneys shall
be allocated to supplement the
mining operations of the
Ministry;
(d)
thirteen percent of the moneys
shall be allocated to supplement
the mining operations of the
Minerals Commission;
(e)
eight percent of the moneys
shall be allocated to supplement
the mining operations of the
Geological Survey Department;
and
(f)
five percent of the moneys shall
be allocated for research,
training and projects aimed at
the promotion of sustainable
development through mining of
which at least forty percent
shall be allocated for the
Geological Survey Department.
(4) The Board shall determine
the signatories to the accounts
of the Fund for the transaction
of banking business.
Expenses of the Fund
22.
The administrative and other
expenses related to the
management of the Fund shall be
charged on the Fund and it shall
not exceed two percent.
Accounts and audit
23.
(1) The Board shall, in respect
of the Fund, keep books of
account and proper records in
relation to them in the form
approved by the Auditor-General.
(2) The Board shall submit the
accounts of the Fund to the
Auditor- General for audit
within three months after the
end of the financial year.
(3) The Auditor-General shall
not later than three months
after the receipt of the
accounts audit the accounts and
forward a copy of the audit
report to the Minister.
Financial year
24.
The financial year of the Fund
is the same as the financial
year of the Government.
Annual reports
25.
(1) The Board shall, within one
month after the receipt of the
audit report, submit an annual
report to the Minister covering
the operations of the Fund for
the year to which the report
relates.
(2) The annual report shall
include
(a)
the report of the
Auditor-General on the accounts
of the Fund, and
(b)
any other information that the
Board considers necessary.
(3) The Minister shall within
one month after the receipt of
the annual report submit the
report to Parliament with a
statement that the Minister
considers necessary.
Miscellaneous Provisions
Regulations
26.
The Minister shall, on the
advice of the Board and within
one year after the coming into
force of this Act, by
legislative instrument make
Regulations to prescribe
generally for the effective
implementation of this Act.
Interpretation
27.
In this Act, unless the context
otherwise requires,
"Annual Expenditure Programme"
means the Annual Expenditure
Programme of the Fund approved
by the Minister;
"banking business" means Class I
and Class II banking business in
accordance with the Banking Act,
2004 (Act 673);
"Board" means the governing body
of the Minerals Development Fund
established under section 6;
"Commission" means the Minerals
Commission established under
section 1 of the Minerals
Commission Act, 1993 (Act 450);
"District Assembly" includes a
Municipal Assembly and a
Metropolitan Assembly;
"Fund" means the Minerals
Development Fund established
under section I;
"mineral royalty" means royalty
payable to the Government by the
holder of a mining lease in
respect of its mining operations
under the Minerals and Mining
Act, 2006 (Act 703);
"mining community" means a
community in which mining
operations take place or which
is affected by mining operations
as determined by the Board;
"Minister" means the Minister
responsible for Mines;
"Ministry" means the Ministry of
Lands and Natural Resources; and
"Scheme" means the Mining
Community Development Scheme
established under section 16.
Transitional provisions
28.
(1) On the commencement of this
Act, the Ministry of Finance and
any other institution shall
cease to administer the Minerals
Development Fund accounts
previously operated by them.
(2) The total sum of money
located in any bank before the
commencement of this Act which
constitutes money intended for
the Fund shall, within thirty
days, be transferred into the
Fund established under section
1.
(3) An amount accruing to the
Fund before the commencement of
this Act shall, within thirty
days, be transferred to the Fund
established under this Act.
Date of Gazette
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