OPTIMIZING POTENTIALS OF SMALL SCALE MINING IN GHANA MINERALS COMMISSION THIRD WORLD NETWORK- AFRICA OPTIMIZING THE DEVELOPMENTAL BENEFITS OF SSM

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 2

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 3 Background: SSM Legal Framework (1)

Background: Legal Framework (2) 4 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. 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)

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 ( 1.4 million ounces) ( ounces) SSM Contributed 34% ( 1.4 million ounces) of total gold production in 2012 as against 28% ( ounces) in 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 5

The Current Situation 6 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

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 8

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 9

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. 10 MAXIMIZING THE POTENTIALS (2)

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 11 MAXIMIZING THE POTENTIALS (3)

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. 12 MAXIMIZING THE POTENTIALS (4)

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  Flushing of Recalcitrant Illegal Miners by National Security 13 SOLUTION: ALL STAKEHOLDERS MUST AGREE ILLEGAL MINING IS NOT DESIRABLE AND MUST STAND AGAINST IT

14 Thanks for your Attention