Otumfuo Calls for End to Overreliance on Royalties

The Asantehene, Otumfuo Osei Tutu II, has called on the government and stakeholders in Ghana’s mining sector to shift focus from mere royalty collection to maximizing the full value chain of mineral resources, particularly gold.

Speaking at a meeting with the Ashanti Regional House of Chiefs on July 18, 2025, Otumfuo emphasized that Ghana’s current reliance on royalties is insufficient to deliver long-term national development.

He stressed that true economic progress lies in adding value to raw minerals, promoting local participation, and ensuring equitable distribution of wealth generated from mining.

“We cannot continue settling for just royalties. We must harness the full value chain—from extraction to processing and development of mining communities,” Otumfuo stated.

He further urged government institutions such as the Ministry of Lands and Natural Resources and the Minerals Commission to strengthen regulatory frameworks and insist on impactful investments from multinational mining companies. Otumfuo criticized the repatriation of mining profits without substantial local reinvestment, calling it detrimental to Ghana’s economic future.

“As a leading gold producer, Ghana must demand more. We must ensure foreign companies contribute meaningfully to local development, not just extract and export profits,” he added.

The revered monarch praised ongoing government reforms aimed at involving traditional authorities in the mining licensing process.

He described the initiative as a step in the right direction toward ensuring accountability, transparency, and environmental responsibility.

Government Deepens Collaboration with Traditional Authorities

In line with Otumfuo’s sentiments, the Deputy Minister for Lands and Natural Resources, Hon. Yusif Sulemana, reaffirmed the government’s commitment to inclusive and sustainable mining practices. He acknowledged the Ashanti Region’s importance as a hub for mineral wealth and pledged that no mining license—small, medium, or large-scale—will be granted without the full consultation and approval of traditional leaders.

“We firmly believe, Nananom, that your endorsement is vital to ensure that mining activities serve the interests of local communities,” he said.

The Deputy Minister also announced the rollout of a Cooperative Mining Scheme, which will empower local groups to legally manage and benefit from mining activities under the guidance of traditional authorities. The initiative aims to formalize operations, create jobs, and reduce illegal mining.

He praised Otumfuo’s leadership, citing his role in promoting responsible mining and land protection. “Your interventions against illegal mining and your consistent advocacy for sustainable practices set a national example,” Hon. Yusif noted.

Policy and Legal Reforms Underway

Mr. Martin Ayisi, CEO of the Minerals Commission, detailed proposed amendments to the Minerals and Mining Act, 2006 (Act 703). These reforms, he explained, are designed to:

• Curb illegal mining

• Improve royalty collection

• Regulate foreign involvement in small-scale mining

• Strengthen environmental and social safeguards

“The goal is to build a mining sector that is transparent, sustainable, and beneficial to Ghanaians,” Mr. Ayisi said.

Former CEO of the Minerals Commission and current advisor to the Minister, Mr. Benjamin Aryee, also addressed the gathering. He presented a comprehensive review of the 2014 Mining Policy, offering insights and recommendations to guide the reform process.

A Call for Shared Responsibility

Hon. Yusif appealed to the chiefs for their input and collaboration in three key areas:

1. Integrating traditional oversight into the licensing process

2. Strengthening community participation in mining ventures

3. Ensuring environmental protection and accountability

“The success of these initiatives depends on your wisdom and leadership,” he concluded.