The Minerals Development Fund (MDF) is a public fund set up by Act 912 of Parliament in 2016. The source of the fund is principally twenty percent of mineral royalties that are received by the Ghana Revenue Authority on behalf of the Republic. These are gained from holders of mining leases in respect of their mining operations. Parliament may also release moneys approved by Parliament for the Fund. Other sources of the fund includes grants, donations, gifts and other voluntary contributions. The MDF may also be financed by other moneys that may become lawfully payable to the Fund. The Act also permits MDF moneys to be accrued from investments made by the Board.
The purpose of the Fund according to the Act is to provide financial resources for the direct benefit and advantage of mining communities and all mining associated individuals and entities of interested in land within a mining community. It is also to equip the traditional and local government authority within a mining community. The MDF fund also sets aside a portion of moneys for the Institution responsible for the development of mining – Land and Natural Resources.
It is anticipated that the MDF will generally promote sustainable mining in various areas through the implementation of the Mineral Development Scheme (MDS). The Fund will be used to:
- Redress the harmful effects of mining on affected communities and persons.
- Enabling local economic development projects and alternative livelihood projects in communities affected by mining activities.
- Undertake minerals related research and development into capacity building of human resources for mining institutions and institutions that train manpower for the regulatory ins
- Undertake projects aimed at promoting the mining sector.
- Support the policy planning, evaluation and monitoring functions of the Ministry in respect of mining related activities.