18/09/2024
Mining News

Ghana’s gold mining dilemma: Balancing economic benefits with environmental and regulatory challenges

Ghana, a major global player in gold production, is Africa’s largest gold producer and ranks sixth worldwide. In 2023, the country produced 4 million ounces of gold, a critical contributor to its economy, accounting for around 7% of gross domestic product (GDP).

Gold mining in Ghana dates back centuries, but in recent times, artisanal, illegal, or small-scale mining has surged in popularity. While this form of mining is legally recognized as a legitimate livelihood source, over 85% of small-scale mining activities are conducted informally and outside state regulation. Artisanal mining is now present in 14 of Ghana’s 16 regions, employing over a million people and producing 40% of the nation’s gold, according to the Minerals Commission, which oversees gold sales in Ghana.

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However, the rise of illegal small-scale mining has brought significant environmental and social challenges. It has severely impacted agriculture, cocoa production, and water supplies. The Conversation Africa has explored the causes behind the surge in illegal mining and the necessary measures to address it.

The illegal mining crisis

Historically, Ghana’s government focused primarily on large-scale mining operations, neglecting the small-scale sector until 1989. A law was introduced to regulate small-scale mining through a licensing process, yet many miners remain unlicensed and unregistered.

In recent years, a surge of Chinese investors and miners has entered the Ghanaian gold market. Many artisanal miners have formed informal and often illegal partnerships with these investors, despite laws reserving small-scale mining for Ghanaians. The consequences of this influx and the associated legal issues have had a profound impact on local communities and the mining sector.

Challenges in regulation

Despite Ghana’s enactment of over 30 laws to regulate mining, controlling illegal small-scale operations remains challenging. Researcher Richard Kumah identifies two major issues: the transient nature of mining operations and the time-consuming process of obtaining a mining license. Additionally, the existing regulatory framework often fails to accommodate the diverse realities of mining operations, making compliance difficult for many miners. Corruption also poses a significant barrier to effective enforcement of mining regulations.

Proposed solutions

Academics suggest several strategies to address these challenges. Richard Kumah advocates for devolving small-scale mining regulation to municipal and district assemblies, in collaboration with traditional authorities. This would involve reforming the licensing system to better align with the socio-economic conditions of miners.

Albert Kobina Mensah argues that criminalization and command-and-control strategies are ineffective. Instead, policies should address the underlying reasons why individuals engage in illegal mining.

Another potential solution involves leveraging the role of traditional authorities. In Ghana, land is customarily held by traditional leaders such as chiefs and family heads. James Boafo proposes that customary representatives should be more actively involved in state institutions responsible for land and natural resources.

Addressing the illegal mining crisis in Ghana requires a multifaceted approach that balances economic benefits with environmental protection and regulatory compliance. Engaging traditional authorities and reforming regulatory frameworks could play a crucial role in finding sustainable solutions for the sector.

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