MINERALS COMMISSION

OUTLINE OF PRESENTATION

A. Background– Legal Framework– Importance of SSM & Potential to

contribute to socio-economic developmentB. 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

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Therefore any activity by individuals, group or companies without the Therefore any activity by individuals, group or companies without the 3 key requirements is an illegal operation, including “galamsey” 3 key requirements is an illegal operation, including “galamsey”

which must not be tolerated by all stakeholders.which must not be tolerated by all stakeholders.

Therefore any activity by individuals, group or companies without the Therefore any activity by individuals, group or companies without the 3 key requirements is an illegal operation, including “galamsey” 3 key requirements is an illegal operation, including “galamsey”

which must not be tolerated by all stakeholders.which must not be tolerated by all stakeholders.

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• SSM Contributed 34% ((1.4 million ounces) 1.4 million ounces) of total gold production in

2012 as against 28% (( ounces) ounces) in 2011. 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

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• 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

• What are the potentials?? o Job Creation (Directly and Indirectly)o Income Generationo Foreign Exchange Earningso Generation of Revenues for Local Assemblieso 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

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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

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• 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.

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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

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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. 

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MAXIMIZING THE POTENTIALS (4)

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

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Thanks Thanks

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