Illegal mining deprives state of revenue

Ms. Joyce Aryee - Chief Executive Officer, Ghana Chamber of Mines

A study conducted on small-scale mining in the country has revealed that the government is losing revenue due to unpaid royalties and taxes by illegal small-scale miners, popularly called galamsey’ operators.

According to the study, revenue that accrued from small-scale mining in 2008 amounted to $340 million, with annual income per miner estimated at $1,700. However, about 95 per cent of them did not pay royalties or any form of tax to the government.

The findings of the research, which were discussed at a stakeholder workshop in Accra, also indicated that a large number of Chinese, Togolese, Malians and Burkinabes have waded into the galamsey business, although the Minerals and Mining Act forbids foreigners from engaging in small-scale mining.

The study, which was commissioned by the Ghana Chamber of Mines, with support from the BUSAC Fund, sought to find a lasting solution to the challenges facing the small-scale mining sector.

Globally, about 100 million people in 70 countries are believed to be engaged in artisanal small-scale mining, producing about 10.6 million ounces of gold annually at a face value of $9.6 million.

In Ghana, it is estimated that between 100,000 and 300,000 people were engaged in artisanal small-scale mining as of 2008, producing about 425,000 ounces of gold, representing about 15 per cent of national contribution.

However, about 95 per cent of them, according to the study, did not have licences to operate.

More than 360 people in four communities, namely, Wasa Akropong, Damang, Bogoso and Obuasi, participated in focus group discussions and in-depth interviews, which constituted the main methodology for the study.

The study found that small-scale mining was no longer the preserve of school dropouts, as had been perceived, because about 60 per cent of the operators had at least basic education, with 25 per cent of them up to the secondary level.

It identified poverty, unemployment and high expectations of good returns as some of the key factors that motivate people to go into illegal small-scale mining.

The study observed that artisanal small-scale mining was a critical national issue that required a holistic, multi-stakeholder approach to address, noting that it offered a huge potential for employment if it was well streamlined.

The leader of the research team, Dr Toni Aubynn, who presented the research findings, advised politicians to desist from politicking with the issue, describing such disposition as a dangerous course to tread.

He said it was unfortunate that sometimes, people condoned lawlessness and urged the law enforcement agencies to do what was expected of them.

The Chief Executive Officer of the Ghana Chamber of Mines, Ms Joyce Aryee, said the findings and recommendations of the study would be presented to the Minerals Commission as part of efforts by the chamber to help the government find a lasting solution to the problem. Share Your Thoughts on this article Name Email Location Comments Graphic Ghana may edit your comments and not all comments will be published