THIRD WORLD NETWORK- AFRICA
OPTIMIZING THE DEVELOPMENTAL BENEFITS OF SSM
OPTIMIZING POTENTIALS OF SMALL SCALE
MINING IN GHANA
MINERALS COMMISSION
OUTLINE OF PRESENTATION
A. Background
– Legal Framework
– Importance of SSM & Potential to
contribute to socio-economic development
B. The Current Situation
C. Identification of Potentials
D. Maximizing the Potentials through
Interventions
E. Conclusions & Way Forward
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Background: SSM Legal Framework (1)
Minerals property of Republic (Act 703, Section 1)
• Every mineral in its natural state ……… is the property of the Republic and is vested in
the President in trust for the people of Ghana.
Mining activities require mineral rights (Act 703, Section 9 (1))
• …. a person shall not conduct activities …… for a mineral unless the person has been
granted a mineral right [by the Minister]
Licence for small scale mining :Act 703, Section 82 (1)
• …. a person shall not engage in or undertake a small scale mining operation for a
mineral unless there is ….. a licence granted by the Minister for Mines
Qualification of applicant for small scale mining licence (Act 703, Section 83)
• A licence for small-scale mining operation shall not be granted to a person unless that
person
– is a citizen of Ghana,
– has attained the age of eighteen years
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Background: Legal Framework (2)
License issued by the Minister for Lands & Natural Resources:
SSM Reserved for Ghanaians & Licence is Site Specific
Environmental Permit issued by the EPA [Act 703, Section 18]
Operating Permit issued by the Minerals Commission
(Inspectorate Division)
Therefore any activity by individuals, group or companies without the
3 key requirements is an illegal operation, including “galamsey”
which must not be tolerated by all stakeholders.
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Background: Importance of SSM to Ghana’s Economy (3)
Globally
• Artisanal & Small Scale Mining (ASM) + a significant sub sector +
provides livelihood for millions; + has the potential to contribute to
poverty reduction and stimulate economic growth.
In Ghana
• SSM Contributed 34% (1.4 million ounces) of total gold production in
2012 as against 28% ( ounces) in 2011. It is worthy to note that in
1989, SSM contributed 2% of the total gold production in Ghana.
• Total diamonds produced in Ghana since 2008 came from small scale
miners.
• An estimated >1,000,000 people are directly involved in small scale
mining in Ghana
– 1,000 SSM Licences; About 600,000 legal SSMs
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The Current Situation
Semi-mechanised SSM operations
Low level of technology
Significant source of employment
Low production costs
Stimulates local economies (both legal and illegal)
Potential Precursors to the development of large scale mines
Involvement of many stakeholders; Politicians, Chiefs,
Landowners, Farmers, Businessmen, Labourers, foreigners etc.
• Significant environmental degradation: pollution, unreclaimed pits
etc
• Poor safety and health conditions, especially in the illegal
operations
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OPTIMISING THE POTENTIAL
OF SMALL SCALE MINING
IDENTIFICATION OF POTENTIALS
•
What are the potentials??
o Job Creation (Directly and Indirectly)
o Income Generation
o Foreign Exchange Earnings
o Generation of Revenues for Local Assemblies
o Improvement in the Local Economy (Economic Multipliers)
o Serve as Precursors to Large Scale Exploration Companies
(Pathfinders)
o Contribution towards Community Development through
Implementation of CSR projects
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MAXIMIZING THE POTENTIALS (1)
Development of a Strategic Framework to Maximise
the Potentials:
Key strategies under implementation include:
• Government must intensify efforts to conduct
widespread geological investigation in the country with
the aim of providing more areas suitable for SSM.
– This ultimately will reduce the incidence of illegal mining
• Formalise illegal SSM activities in designated areas and
form cooperatives and associations and support them
with equipment and working capital
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MAXIMIZING THE POTENTIALS (2)
• Establish and Resource District Mining
Committees and SSM Associations to assist in the
management of SSM activities in the country
• Educate, train and provide logistics to enhance
the efficiency, and safety of SSM operations.
• Strengthen capacity of officers to monitor SSM
activities as well as enforce provisions in the Act
and legislations;
• Value Addition to minerals produced
– Jewellery, coinage etc.
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MAXIMIZING THE POTENTIALS (3)
• Collaborate with key stakeholders including:
–
–
–
–
–
Security Agencies
Traditional Authorities
Opinion leaders
Farmers/landowners
Municipal/District assemblies etc.
…………..to deal with illegal miners
• Develop environmental management guidelines for
SSM in conjunction with the EPA and ensure
compliance
• Develop Guidelines on Health and Safety and train SSMs in
the use of environmentally friendly processing methods
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MAXIMIZING THE POTENTIALS (4)
• Collaborations between policy makers and Universities,
especially UMAT which has been turning out graduates for
the mining industry should be enhanced.
• Establishment of a Competency Training Centre
– This Centre is envisaged to offer training to small-scale miners
in proper mining practice, proper support systems, ventilation
and dewatering for underground works and safe blasting
practice;
– This form of institutional support to the small-scale mining
sector will facilitate improved mining practice and safety of
small scale miners, drastically reduce the numerous
occurrences of serious and fatal accidents, control the illegal
acquisition and use of explosives and reduce the
environmental degradation associated with their operations.
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CONCLUSION: STRATEGY RETHINK FOR SSM
STRATEGY RETHINK: National Problem but with local solution
• Sustained public education programmes are needed to address the
challenges.
• Especially, our traditional authorities and land owners will be expected to
play active roles in curbing illegal mining in our communities
 Implement Strategic framework on SSM in tandem with Action Plan
of Inter-Ministerial TaskForce
 District Mining Committee Drive
 ASM Associations Formation
 Active Engagement of Local Authorities
 Intensify National and Broad Based Sensitization
SOLUTION:
Flushing of
Recalcitrant
Illegal MUST
MinersAGREE
by National
Security
ALL
STAKEHOLDERS
ILLEGAL
MINING IS
NOT DESIRABLE AND MUST STAND AGAINST IT
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Thanks
for your Attention
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