Ghana’s woes in the Small-Scale Mining Sector is due to Bad Laws and Regulations

It is very sad that my nation Ghana with very excellent lawyers with the GBA, excellent Mining Experts and Scholars and excellent Intelligentsias Community has woeful failed to understand what is Small Scale Mining and so as to appreciate that it is a Global or National Security threat. Consequently, need for containment and monitoring and enforcement processes through the vehicle of both Legalization and Formalization processes through Community Mining vehicle which must have on board the Chief and Queen mothers as part of the Governance of the Community Mining to ensure a shared responsibility in managing the associated safety, security, health and environmental risks.

When a Country is faced with National Security problem or a potential existential threat like the growth of a Slum or Prostitutions or Small Scale Mining the best way to deal with the associated risks of these listed problems is proper risk assessments so as to contain the risks by Legalization and formalization processes. It is very clear that proper risk assessment was not done on the risky Small Scale Mining before enacting laws on Small Scale Mining which is a potential threat to global or National Security.

So, Ghana’s problem in the Small Scale Mining has been compounded by the failure to appreciate that Galamasey is the indigenous term or name for Small Scale Mining, hence Galamasey is synonymous with Small Scale Mining. So, Ghana’s inability to deal with the risks associated with Small Scale Mining is due to the failure by most Ghanaians especially Hon MPs who are to enact appropriate laws to appreciate that Small Scale Mining and Galamasey are the same thing because by global standards they are seen as an informal indigenous subsistence or survival project by poor and marginalized communities, who consider the gold as a Gift from God to escape from their poverty misery.

A careful study of Section 77 of the Minerals and Mining Law 1986 (PNDCL153) and the Small Scale Mining law 1989 (PNDC Law 218) especially section 21, you will come to the conclusion that these Laws were Galamasey Laws enacted to recognize a Ghanaian indigenous activity or activity of our ancestors. So it was restricted to Ghanaians and it was decreed that Small Scale Mining will only be allowed if and only if it was/is in the interest of affected Community as a win-win solution. So the Small Scale Mining Law was explained to the public as Galamasey Law by the Chairman of the PNDC during the economy recovery Program. So the Association of Galamasey Operators was formed initially which metamorphosed into the Association of Small Scale Mining Operators..

It must be noted the World Bank mission is to reduce extreme poverty, so in 1995, so on realizing that Galamasey is a poverty alleviation program, the World Bank organized the first international forum on Small Scale hence Galamasey which is a poverty alleviation activity in May 1995. The conclusion at the forum was that Galamasey as Small Scale Mining has come to stay. So, based on this report, Ghana received the first millions of dollars as grant from the World Bank in June 1995 to enable Ghana to formalize Galamasey (artisanal and Small Scale Mining as poverty alleviation project.

So, a good understanding of the underlying issues, dynamics, norms in the Small Scale Mining Sector would have informed the regime of President Kofour in 2006 when it was amalgamating the Mining Laws into the Minerals and Mining Law2006 (Act 703) that the Small Scale Mining Laws as enacted by the PNDC was to lift the ban on Galamasey or Small Scale Mining and regularized a time-honored activity for survival or livelihood which was banned by the British Colonial Masters. The regime would have realized that though it remained banned it persisted like Prostitution and has come to stay as concluded by the World Bank. So the solutions for Small Scale Mining a necessary evil like Prostitution is not by militarism alone because it has come to stay. So It rather requires full range of measures including Militarily, Politically, Economically especially by Alternative Livelihood etc, So, those calling for the head of the Minister for Lands and Natural Resources must revise their notes

The Central Government was/is required to help them operate Small Scale Mining responsibly, with the prime agenda to elicit the support of the Chief of the Community and the World Bank for grants to navigate the Small Scale Miners gradually to Alternative Livelihood Projects. So allowing tycoons to participate in Small Scale Mining as a window for accumulating more wealth was the biggest blunder by Ghana. What was/ is expected of a civilized society was to prevent tycoons operating in the Small Scale Mining Sector through the relevant institutions.

To support my claim that Galamasey the local name for Small Scale Mining which was a problem was legalized in Ghana by the PNDC as part of poverty alleviation. I wish to draw the attention of my Compatriots that the PNDC as part of win-win solution in the financial sector especially in the Lottery Industry with the District Lotto Law which like Galamasey is coined in the local parlance as Banker to Banker. Hence Banker to Banker and Galamasey are both informal activities recognized by laws. I wish to disclose that Presidential Candidate Nana Addo lost in the Presidential election in 2008 due to the ban on Banker to Banker by the Regime of Presidential Kofour with Hon Madam Coleman or was it Hon Mrs Cecilia Bannerman was the Sector Minister. You may confirm this from the Private Lotto operators who were forced by the ban to openly give their support to then Presidential Attah Mills.

Both Galamasey and Banker to Banker only required a civilized society understand the underlying issues so as to formalize them through further Legalization and Formalization process to prevent tycoons from hijacking the sectors. So, considering the global definition or the underlying issues or characteristics of Small Scale Mining, Parliament under the Regime of Kofour should be blamable for the mess in the Small Scale Mining Sector for enacting a problematic small scale mining law which required individuals interesting in mining to apply for Mining Licenses as enacted by regime of President Kofour.

Parliament made a further blunder with matters on Small Scale Mining with the enactment in 2012 with the Minerals and Mining Support Services Regulation 2012 (L12174) which gave a lucrative window for the Chinese to bring thousands of excavators and Chafang machines to support their Ghanaian collaborators in Small Scale Mining an activity by the poor

Parliament in 2015 compounded the situation furthermore with denying the Precious Minerals Marketing Company its original jurisdiction of buying and exporting of gold from the Small Scale Mining Sector and gave it to private Companies as Exporters of gold. So, the aspect of bullion export in the Minerals and Mining Act 2015 (Act 900) enacted in 2015 fueled the rot in the Small Scale Mining Sector through invasion of the sector by the foreigners or tycoons with the promotion of Small Scale Mining for more gold. Since they are allowed to keep 80 percent of the Sale from export outside Ghana and bring only a meagre 20 percent to Ghana, when PMMC was required by PMMC Law 1989 (PNDC L219) to bring 100 percent of the export to Ghana.

So, let me point that the Small Scale Mining Law enacted in 2006 is very stupid one. We should have prevented individuals especially tycoons and Companies in the Sector and we should rather made it only for Community Mining, which should be allowed if only and only if it is in the interest of the affected Community So, those people including seasoned lawyers who should know better calling for the arrest and prosecution of Chairman Wontumi should revise their notes in Business or Company Law. The breach of mining law if any was committed by Akonta Mining Company Ltd as a limited liability corporate body, with the power to sue and be sued. So Akonta Mining Company Ltd if any breach was committed should be held responsible and Chairman Wontumi in person did not breach any mining law.

It must understood that Legalization is one stop measure by Law and Formalization is by continuous sound regulations and monitoring to contain a risk, so Formalization is the trip to Legalization to achieve the desire Objective. So once again, Ghana’s problem in the Mining Sector is due to bad laws and regulations on Small Scale Mining enacted in the Regimes of President Kofour and President Mahama. Both Regimes woefully failed to appreciate that Small Scale Mining is a necessary evil but a strategy for livelihood by the very poor rural Community.

A critical (mindset) thinking on the global definition of Small Scale Mining and that by World Bank Group speaks volumes of Small Scale Gold Mining as an informal economy sector for livelihood but a potential Global or National or Security threat. Hence Small Scale Mining whether with license or without license is an enemy to the People due to its existential threat undertone. Hence it required holistic approach for success.

To achieve success in anything you need to know what you wish to achieve and persevere (persist) in achieving it against risks, uncertainties, obstacles, oppositions thus a requirement of application of full range of radical measures. So our problem is that we are not coherent in dealing with the risks, due to inability to identify the enemy to the environment. Understanding the enemy its original issues, characteristics, dynamics, norms etc so as to select the Aim through a deliberate process of analysis and evaluation of various options, in order to decide the principal objective and maintain the Aim for the success principle that is the First Principle of War as in the USA and British doctrine

The first principle of war is Selection and Maintenance of Aim same as the Principle of Business Success. To conclude, Critical thinking will tell us that we need to sanitize the mining laws and regulations by relooking the laws and regulations especially section 81 to 99 of Act 703, and repeal Regulations LI 2174 on Support Services and Minerals and Mining Law 2015 Act 900.

To sum up Small Scale Mining whether with license or without license is the enemy as explained above, the Licensed Small Scale Miners are the worst or real enemy they brought the Chinese and they are those using sophisticated technology. Galamasey is the local parlance or broken English term for Small Scale Mining in the Mining Industries or the lexicon of the World Bank Group because they have the same Characteristics.

Small Scale Mining existed before the establishment of Gold Coast hence it was/is the indigenous method of mining akin to subsistence Agriculture for livelihood and or as a strategy to alleviate poverty. Galamasey originated or coined by the illiterates native as gather and sell in broken English during the era of the British Colonial Masters or the English speaking colonialists.

Key take aways on the Mining Sector
Two subsectors in the Mining Sector namely mining by Large Scale Mining Companies which strict compliance with both Local and International laws and regulations or Standards and the other sector is Small Scale Mining, the subject of my submission. Small Scale Mining has the following issues

1. Small Scale Mining thousand years or centuries tradition or indigenous activity by the Ashantis and other clans, Banned by the Colonial Masters in 1933 and ban sustained during post-independence era in 1962, Ban was lifted in 1986 with ‘Galamasey Law’ at 77 of the Minerals and Mining 1986 (PNDCL153) to recognize the time-honored (traditional and indigenous) activity using simple tools or it is manual. No sophisticated technology.
2. Number gradually increase with population increase and the gold rush, currently over 30millions globally and about 3million in Ghana including women and children
3. They consider their mining activity or minerals as a gift from God to escape from poverty misery for survival hence not rich riding in luxury cars etc. but for poor and marginalized and jobless people...
4. Their activity is mainly informal economy, hence essentially manual neither administrative nor financial requirement, no barrier, move from place to place. According to the World Bank Group. Artisanal and Small Scale refers to all kinds of local mining activity that large Scale Mining Companies could encounter in their operations hence conflict may arise.
5. Do not care for their health, do not care for their safety hence Totally irresponsible, hence Environmental threat, a potential National Security threat

The way forward;
Clear Segregation of poor, marginalized and jobless participants or operators for whose operations is a strategy for livelihood as poverty alleviation) from the tycoons for wealth by;

1. Revoke the Mining Licenses and upgrade them to Mining Rights either navigate them to Large Scale Mining as Junior Companies otherwise create new category as Medium Scale Mining Sector for them to operate under strict International and Local Standards Minimum capital if solely Ghanaian Company as GHC800,000.00 Since mining is capital intensive they should be free to partner with foreign financier who must pay not less than 2Millon Dollar. They should post bond in US Dollars as required in Environment Assessment Permit 1999 (LI 1652) for rehabilitation
2. Small Scale Mining as Create Community Small Scale Miners Project for the rural dwellers, Chief to be part of the Governance system of the Mining activity by appointing his Rep as Supervisor for a shared responsibility. .
3. Use of full range of Measures like Politically, Financially/Economically especially by Alternative livelihood Projects, Socially, Militarily to control them and provide protection. Academically skill how to run business and business accounting and technical training, Psychologically
4. Alternative Livelihood Projects through short and long time generation crops and animals.
5. Use the State Security Forces as Friendly Forces to monitor and control both Medium Mining Scale and Small Scale Mining, and Security to only act aggressively when necessary,
6. Link them with or see the nearby Multinational Large Scale Mining Companies through the Ghana Chamber of Mines for area to work, to provide technical support.
7. Seek support from World Bank, USAID, UNICEF and other relevant International Community, Provide technical and financial support and training in other trade and
8. Repeal Minerals and Mining Support Services Regulation 2012 (li2174).

Reset the original role of exclusive right for exporting gold by Precious Minerals and Marketing (PMMC) to buy an export gold from the Small Scale Mining Sector and Medium Scale Mining Sector and with time consider to upgrade the PMMC to Precious Minerals Board akin to COCOBOD so that it can also indulge in the Robbing Peter to pay Paul syndrome with syndicated loan

PMB if formed it should keep about 7 percent sales from Small Scale Mining Sector for Backfilling an replanting or reforestation

My Country is at a cross road to take a tough decision on Small Scale Mining dubbed locally as Galamasey. Thus may affect the livelihood of Galamasey Communities nationwide otherwise those Communities close to rivers and the forest areas. National statistics indicate there are about 4milllons operators in the value chain the number increasing with the state of poverty which is the motivation hence a huge political constituents not to joke with. So this must be considered in the deliberate analysis.

Small Scale Mining is defined globally and in the lexicon of the World Bank Group as indigenous mining method akin to subsistence Agriculture or farming by millions of poor and marginalized people as operators including women and children using simple tools, with no money who regard the gold they are seeking for as a gift from God for them to escape from their poverty misery. They will take donkey years to destroy an area since they normally use simple tools and no usage of substantial expenditure.

With the concept that the gold is a gift from God or the ancestors and driven by poverty, should tell no barrier hence move from place to place simply chasing the gold vein and they will not care for their health, do not care for their safety, hence do not care for the environment, so irresponsible posture, no administrative, no managerial, no financial requirement have no respect for government etc and it seems Government and their compatriots do not understand and respect them.

The Government and others do not respect the real Small Scale Miners because they are not part of the stakeholders during deliberations on Small Scale Mining. They must be something very wrong with our Leaders, with the cacophony of Licensed Small Scale Miners (in real sense they are counterfeit Small Scale Miners since they are rich, can buy cars etc). Check with TV3 and you will be told that due to delay or nonpayment of the scholarships of Ghanaian Students on scholarships abroad some are doing Small Scale Mining to escape from their very poverty misery,

So the Mayor of Ketu cannot and will not fit in the global definition of Small Scale Miner. Hence the woes of Ghana, is a failure to understand the underlying issues, characteristics, concept, and norms and find a way to contain the numerous operators through Cooperative or Community Mining with Governance, so participation of the Community Leadership such as the Chief and Queen and spiritual Head is sin qua non a must) to ensure Shared Responsibility.

Let me give a true story or facts on what happened in the Talensi District. Check for the history of Kejetia Galamasey Camp and Obuasi Galamasey Camp established in Talensi in the Upper East Region in1995 by miners from Kumasi (Kejetia) and Obuasi respectively. The people of Talensi rejected them initially but due to famine or crop failure, they later on accepted them, with the Chief appointing his Rep in each camp. Each Camp employed a lot of men, women etc.

The Spiritual Head namely the Tidana was/is called upon to pray for them when a mishap occurred. Upon investigation by the Minerals Commission in 1996 and based by the Small Scale Mining Law at Section 77 of the Minerals and Mining Law 1986 PNDCL153 and the Small Scale Mining Law 1989 (PNDCL218) see section 21 for definition as operations with no substantial amount, no sophisticated technology and that a Community Mining is only to be allowed if and only if it is in the interest of the Community, Mining Licenses were issued to each of the two Reps of the Chief to formalize the Galamasey operations, hence their Galamasey operators worked under the licenses of the Licenses of their Camp Commanders.

In 2008, the two Reps of the Chief, who were given Small Scale Mining Licenses in 1996 for the two Galamasey Camps, were among the over 300 miners with licenses nominated by the Regime of President Kofour to go to China and understudy the Chinese in mining. This was beginning of the woes of Ghana and Small Scale Mining because the affected Ghanaians made business deal with the Chinese. So some of them were the people who initially introduced the Chinese in illegal mining. One of the Reps of the Chief used his Mining License to lure, the owner of Shaanxi Mining Company of China to initially work in small scale mining sector before transition to large Scale Mining Company as Earl International.

So at this juncture, one may ask what illegal mining?. Illegal Mining is simply a breach of a mining law or regulation. Small Scale mining by law is for Ghanaians only so the Chinese involvement in Small Scale Mining is illegal mining, the use of sophisticated equipment or substantial expenditure is illegal mining. The passage of Minerals and Mining Support Services Regulations 2012 (LI2174) contributed to influx of thousands of excavators by the Chinese into the Small Scale Mining Sector. This is due to the inducement of the Licensed Small Scale Miners. Imagine single Small Scale Mining Company with 40 excavators you can imagine the massive destruction within an hour as against the donkey years it would take to finish a small area by real Small Scale Miners., The total excavators of the Large Scale Mining Companies under the Ghana Chamber of Mines is not up to 70.

So a person with critical mindset thinking would conclude that License Small Scale Miners are those causing the illegal mining because they are the people who brought the Chinese and the excavators equipment for massive destruction and destruction of farms, hence licensed Small Scale Miners are also enemies to the environment. Read 2020 Report of the Auditor General on Small Scale Mining Companies.

Large Scale Mining Company like Newmont as a human institution is not immune from breaching a mining law and if it happens it will be wrong to say Newmont has done Galamasey

Understanding of the mentioned issues or details or characteristics, should tell a person with a critical mindset thinking that real Small Scale Miners need help urgently including skill training, Alternative Livelihood Projects, you cannot, and should not dream of license Small Scale Miners, since the motivation is livelihood and not necessary to generate wealth like the Mayor of Nankpanduri, who has job. So no need for Alternative Livelihood.

Critical thinking will tell that navigate licensed Small Scale Miners to Large Scale Mining as Junior Companies otherwise create a Medium Scale Mining Sector for them to freely collaborate with the Chinese miners. So that the Nation will gain enough from our Chinese friends including SSNIT Contributions.