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Small - Scale Mining is a Boost to National Economy

By The Statesman
Small - Scale Mining is a Boost to National Economy
31.07.2009 LISTEN

Worried by the illegal mining activities, the government in 1989 by PDNC Law 218 legalised the small scale mining in an effort to curb galamsey, the local parlance for illegal mining.

Gradually, the legalization appears to be yielding the intended results though illegal mining activities were record high in 2008 according to the Ghana Chamber of mines.

 
A field trip to some mining communities such as Apinamang, Akanteng, Kobriso, all in   Kwaebibirim District of the Eastern Region, where gold is being mined on a small-scale revealed   how natural resources could be harnessed by the locals to improve their living standards. Economic activities have increased and the area has attracted a lot of people. Views gathered from the dealers of the small-scale mining in the area pointed to the fact that the legalised mining operations are than better than the hitherto galamsey in all ramifications.

 
Kwadwo Agyemang, a pioneer in the small scale mining industry, told this paper that the latest approach of their operations has minimised harassment by government officials, adoption of good environmental practice, guaranteed jobs for the youth and the reduction of crime rate in the mining communities.

 
He, however, expressed concern over delay in processing of documents to acquire a license. But Mr. Amponsah Tawiah, a senior officer of the Minerals Commission said the complaint was unfounded and disclosed that the maximum period to process documents is ninety days. According to him, the process to obtain license starts from the district level whilst the minerals commission exercises supervisory role before the final approval by the sector minister.

In an attempt to facilitate easy acquisition of the license, the country has been zoned into seven dsistrict mining offices namely; Assin Fosu, Akim-Oda, Tarkwa, Bolgatanga, Asankragwa, Bibiani and Dunkwa, where the mining officers carry out field inspection to ensure that the operators comply with the required procedure.

 
Thereafter, the District Chief Executive in the area where the concession is located is mandated to publish the dealer's application for twenty one days and if there no adverse comments, he signs the form to release it for formal processing.

 
Also speaking, Kwame Agyare, a small scale mining dealer, complained about lack of capital and alleged that government officials prefer to give license to foreigners rather than indigenes or local entrepreneurs.

 
Investigations carried out indicate that at least one needs about GH¢ 20,000 to be able to venture into the small scale mining. The money will be used to acquire land, process document, pay compensation, purchase of washing and pumping machines as well as hiring of excavator. The excavator, a heavy duty machine which is used to dig out gravels, is usually hired by the dealers because they cannot afford to purchase it.

 
The charge for a day's job ranges between GH¢ 800 and GH¢ 1000. With galamsey crude method, implements and manual digging are applied.

“This is a means of livelihood for our people and if not for the small-scale mining stealing would have been rampant”, Mr. Agyare noted.

 
Against this backdrop, he suggested that government should focus greater attention on the small-scale miners by giving them loans because their operations could absorb the teeming unemployed youth.

 
Currently, the guess estimate of small-scale mining employs between 100,000 and 500,000 people across the country with over 600 licenses given to the operators over the years.

 
These people engage in small scale mining in gold, diamond, sand wining and quarrying.

Again, Mr. Amponsah Tawiah refuted the allegation that licenses are given to foreigners and explained that small-scale mining is reserved for Ghanaians. Giving some of the benefits of the small-scale mining, the minerals commission official stated that the sector has since produced 425,074 ounce of gold valued at US $ 340m, no capital repatriation, job creation for the youth and wealth creation for the mining communities.

 
He admitted that mining operations are capital intensive and that perhaps explains why dealers engage the services or enter into agreement with foreigners.

According to Mr Amponsah,before the regularization of the small scale mining over US 50m dollars worth of gold was smuggled out of the country but today the bulk of the gold produced passes through official channels.

 
At the mining sites, it was amazing to observe that children below eighteen years are no longer allowed to work there unlike galamsey where school going age teenagers are hired to work. The hostile relationship that often exists between the giant mining companies and the host communities is almost non existent when it comes to small scale mining. The information is that the operators pay due homages to the traditional rulers in their area of operations and also pay compensation to farmers promptly.

 
Though the small scale operators are not bound to undertake development projects, some as part of their social responsibility dig boreholes, renovate schools, donate to churches, purchase of street light bulbs etc for their host communities.

 
Collins Dauda, Minister of Lands and Natural Resources, noted that government was aware of the potential of the small scale mining as a source of job creation hence the encouragement being given to the operators.

 
“The essence of reserving the small scale mining for Ghanaians is to encourage operators to grow to become medium and large scale firms,”he stressed.

Reacting to the financial assistance issue, the Minister stated,”For us we wish the banks support them but we can not force them to grant loans.”

According to him, what government does is to build the operators capacities by organizing workshops for them.

 
He disclosed that some of them have been sent to China to learn the new techniques of small scale mining adding, ”We think when they are exposed to new technologies of mining they would improve upon their performance and grow to access facilities from the banks.”

He went on,” What I want to emphasise here is that often times if you involve politicians in granting loans, you end up collapsing the banks. The People see the facility as a political dash.”

Asked how many licenses he has signed since he assumed office,Alhaji Dauda said only a few but declined to give any figure.

 
He admitted that mining operations are capital intensive and that perhaps explains why dealers engage the services or enter into agreement with foreigners.

According to Mr. Amponsah, before the regularisation of small scale over US$ 50m worth of gold was smuggled out of the country but today the bulk of gold produced passes through officials channels.

 
At the mining sities,it was amazing to observe that children below eighten years are not allowed to work there unlike galamsey where school going age children are hired to work. The hostile relationship that often exists between the gaint mining companies and the host communities is almost non-existent when it comes to small-scale mining. Information gather showed that dealers pay their dues accordingly to the traditional rulers in their area of operations and also pay compensation to farmers promptly.

 
On the environmental front, the Environmental Protection Agency needs to step up its monitoring in the sense that many of the small-scale mining dealers operate illegally and therefore do not have the required environmental permit.

 
It is very unfair to allow an international company or foreigners to come and generate profit in the country at the expense of the people.

By: Obeng-Danquah Castro

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