By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

The Andros Chamber of Commerce’s president yesterday voiced concerns over how the new mining law will impact Family Island communities given the seeming conflict of interest on the Government’s part.

Darin Bethel told Tribune Business there are questions relating to the strength of oversight as the Government will act as regulator while, at the same time, taking equity ownership interests and receiving profits from the same entities it is supervising. He said this system can present a conflict of interest, especially on Family Islands.

“We have to take into consideration what a project like this would mean and how it would affect our communities, specifically, the business community, and how would they benefit? What is there to assure the business community that there will be proper oversight for the project, considering the Government being a partner, the regulator and the legislator? That brings somewhat of a conflict,” said Mr Bethel.

The Mining Bill allows the Government to take a “minimum”10 percent equity ownership interest in mining firms, while profit sharing also enables it to receive “a minimum of a 25 percent of the profits of the mining operations” along with royalties.

Mr Bethel said oversight of the industry could be enhanced if local communities partner with investors along with government oversight. He added that a portion of mining revenues should be given directly to the communities who will be impacted by the activities.

“I think that it’ll be more sufficient and beneficial if the community partnered with an investor with government oversight, rather than the Government itself partnering, and because the communities will be directly impacted, I feel as if a portion of the revenue should go to the communities and a portion of the revenue should go to central government,” said Mr Bethel.

He added that it is especially concerning for communities in Andros as a large amount of aggregate has been stripped of its salt content due to decades of fresh water dredging, making it especially appealing to potential miners.

Mr Bethel said the Andros community would be most affected if a mining accident damaged the island’s large freshwater lenses, so there should be provisions to have public consultation prior to allowing projects and a direct economic benefit for local residents.

“We need to know also what would this mean for the community of Andros, and what would be the economic impact of such an investment in mining, rather than just doing it for the sake of housing the materials to benefit the Government,” said Mr Bethel.

“We believe the profits should be used in some way to advance the community and the people. Any type of mining project should take some initiative in educating our people, investing in the scholarship fund, and doing more beyond just 20 percent towards central government.”

Mr Bethel added that the legislation should also have more environmental protections that take each island’s unique landscape into consideration.

“There should be more meat in this to protect the environments of Andros and every other island. When you look at our unique system, with our water lenses and our extensive mangrove system, we are very concerned that mining of any sort of can come in there and disrupt the marine life and our ecosystem,” said Mr Bethel.

Prime Minister Philip Davis KC, in his contribution to debate on the Mining Bill, said: “This Bill will introduce a Mining Cadastre Register, so that Bahamians can see for themselves who is applying for mineral rights and mining licences, who has received rights and licences, and the relevant details of who, what, where, when and how these activities shall be conducted.

“This transparency is critical. The natural resources of this country belong to the people. Through this Bill, we are establishing – for the first time – the right of the Bahamian public to be made fully aware of any reconnaissance, prospecting or mining happening in our country.

It is crucial, given our history, and given the exploitative model we see in so many places, where outsiders make profits while the people lose, that we prevent unscrupulous practices in our country. That kind of funny business is no business at all. It is economic thievery masquerading as enterprise. It is the theft of sovereign wealth. And it will not happen here.”

Promising that Bahamians will no longer receive “pennies” for exploitation of their natural resources, Mr Davis said: “This Bill establishes that any mineral resources discovered in our country, whether on public or private land, belong to the Commonwealth of The Bahamas. It can never be the case that mining activities are able to circumvent the law by being solely carried out on private property.

“The Government is entitled to collect both royalties and fees on behalf of the Bahamian people. These funds will be collected by our National Investment Fund to go toward critical infrastructure, climate resilience, and other necessary investments to build up our nation.

“Under this Bill, in addition to obligations to train and employ Bahamians, Bahamian businesses must also be given first preference as suppliers of goods and services. As we continue to renew and reform the principles which guide our expectations for investors, the inclusion of Bahamian businesses will play a major role,” he added.

“We will make this requirement a part of National Investment Policy framework, so that all investors understand our expectations when it comes to including Bahamian businesses. Through royalties, fees and the inclusion of Bahamian businesses, we are maximising the economic impact of any mining activities in our nation.

“This includes the provision of a minimum 25 percent profit-sharing arrangement between the mining operation and the Government. The Government is also entitled to hold a 10 percent equity interest in the holder of a mineral right. In other words, there will be no arrangements where the Bahamian people receive pennies on the dollar,” Mr Davis continued.

“In this Bill, we are also protecting the interests of the Bahamian people by aggressively going after any party that seeks to defraud or mislead the public when it comes to their mining activities, and anyone who contravenes the law or seeks to assault or hinder officials in the execution of their duties.

“These actions will be penalised with both fines and imprisonment. We require fair, honest and transparent communication with the Government and Bahamian people so that we can make the decisions that align with our strategies for economic growth.”