The Government has passed a law criminalising the activities of illegal small-scale miners, popularly known as ‘galamsey’, in the country.
The new law would also criminalise the engagement of foreigners in small-scale mining operations and also makes it an offence for a Ghanaian to employ or engage a foreigner to undertake or participate in illegal small scale-mining activities.
The Minister of Lands and Natural Resources, Mr Nii Osah Mills, said the Act was passed with the aim of sanitising the mining sector.
Speaking at the Ghana Industry Mining Awards for 2015, the Minister said the new law would complement the amendment to the Minerals and Mining Act of the Minerals Development Fund (MDF) Act which is awaiting presidential assent.
“I dare say that it is our expectation that it will be a game changer as its diligent implementation should witness a transformational change and renewal of mining districts through tangible development on the back of the mining industry” he said.
According to him, in order to deepen the integration of the sector with the rest of the economy, the Local Content Regulation is serving as a useful guide to the implementation of local content in the mining sector.
Procurement list
He said through a collaborative effort between the Minerals Commission and the Chamber of Mines, a procurement list had been issued by the former, which mining companies were expected to procure from local sources.
The list consists of items which include grinding media, explosives, cement and cement product, heavy duty electrical cables, tyre rethreading, as well as quicklime and hydrated lime.
“I have been informed that the Minerals Commission has commenced discussions with the Chamber, with the aim of expanding the number of items on the procurement list” the minister said.
Ministry’s expectation
He said it was his ministry’s expectations that the mining companies in the country surpassed the 77 per cent achievement the mining companies chalked up in 2014.
He said Ghana certainly benefited from mining in diverse ways, adding that the evident benefits to many were the creation of job opportunities, as well as taxes and royalties mining companies paid to the state.
“These financial contributions are very substantial for which reason the sector has continued to be the leading and prime contributor to the nation’s purse,” he said.
According to him, despite the opportunities in the mining sub-sector, mining came along with its challenges such as land degradation, pollution of the environment including water bodies and issues of land tenure security.
“One major challenge facing producing companies is the high incidence of illegal mining and the government regards small scale mining as a legitimate business with a great potential for poverty reduction,” he said.
That his ministry would work with the Minerals Commission to formalise the small-scale mining sector more deeply so it could contribute more meaningfully to the country’s economy.
He said his ministry had embarked upon various sensitisation programmes to create awareness on the acquisition of licenses in order to curb the menace of illegal mining.
These public sensitisation programmes included advertisements in the media and on bill boards as well as signages in English, French and Chinese at vantage positions at the Kotoka International Airport.
“It is our fervent expectation that such public engagements will increase knowledge about the new law and the ramifications for those who fall foul of it,” he added.
Difficult year for mining sector
The Chairman of the Adjudicating Board, Prof. J.S.Y. Kuma, for his part said this year had been a difficult one for the mining industry globally, adding that Ghana’s power crises had not helped the already daunting global downturn.
“In the face of these very challenges the companies have been resolute in keeping their operations afloat and relevant to Ghana’s economy,” Prof. Kuma said.
He, however, underscored the need for those companies who kept the ship afloat even though there were difficulties.
Gold fields Ghana emerged as the best mining company, while Newmont Ghana and Golden Star Resources picked various awards.
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