Before I expatiate on the subject, let me welcome you on board the Bogobiri Ship by humbly asking you to Google for Small Scale Gold Mining Law 1989 (PNDC Law 218) and read the interpretation of Small Scale Mining and Citizen of Ghana at Section 21. This same as for the Interpretation for some terms in the Minerals and Mining Act 2006 (Act 703) at Section 111. Or Google and read the ‘First World Bank Grant to Ghana in June 1995’ and you will read that Small Scale was/is referred to as targeting Galamasey in the Grant. Hence, it was a Galamasey Grant, so you make a judgment call that Small Scale Mining is poverty alleviation which needs intervention by the Government.
The first World Bank grant to Ghana in May 1995 was based on the first international seminar on Artisanal Mining. Google and read the ‘First International Roundtable or Seminar on Artisanal Mining held from 17 to 19 May 1995’ by the World Bank. Also Google for ‘Real Gap in Small Scale Mining particularly in Ghana’ as explained by some erudite Mining scholars especially Dr Gavin Hilson and Dr Abigail Hilson. Finally Google for a very instructive article on Small Scale Mining by Google for ‘Review laws on Small Scale Mining, by Dr Tony Aubynn’, then the CEO of the Minerals Commission, hitherto, the CEO of Ghana Chamber of Mines, which was published in the internet on 04 March 2016.
Dr Tony Aubynn and others including this writer before this date, called for reclassification of the Mining Sector to include a third nomenclature in the Mining Sector as a Medium Scale Mining Sector for Wealth Creation to enable Ghanaians with time to gain commanding heights in mining, since Mining is capital intensive, the Medium Scale Mining Sector should allow the Chinese and other foreigners interested in mining in our midst as part of the people of Ghana to form Joint Partnership ventures with Ghanaians to operate mining business ventures.
This writer and others called for the relegation of Small Scale Mining as Artisanal Small Scale Mining (ASM) or Indigenous Mining and as such as a poverty driven phenomenon, it must not allow the use of sophisticated technology and no use of substantial expenditure, must be in the interest of the affected Community and Intervention by the Government with the support of the World Bank or International Communities and the Member Mining Companies of the Ghana Chamber of Mines, State Security Agencies, Faith Base Organizations, relevant CSOs through multifaceted approach including monitoring with effective regulations and the provision of lucrative Alternative Livelihood Projects.
So, it is high time the Ghanaian Authorities are educated or told that to solve a problem requires proper understanding of the underlying issues/the Characteristics by diagnosis or by risk assessment/ study of the history of the problem. So, based on proper risk assessment/history of mining, hence with critical thinking mindset, the Ghanaian Authorities need to be told in clear terms that real Small Scale Mining is a poverty driven phenomenon and need intervention by the Government. Since, Small Scale Miners globally, consider the mineral say gold or feldspar or Salt as a gift from God for them to escape from their poverty misery.
So, true Small Scale Miners operate globally with the mindset that the minerals are gifts from God so they act in a nomadic, disorganized/disorderly, irresponsible manners without care to the environment, care to themselves and care to others around them or in the enclave. Hence Small Scale Mining is a global Environmental, Health, Safety, Security (EHSS) Risks beside other problems like labour, legal, and gender concerns.
The stated above situations make Small Scale Mining to a potential external threat if not poorly understood or not well managed by constant restraining with effective regulations and monitoring for win-win solution but not to be promoted with Youth in Small Scale Mining Schemes or the type of the current bureaucratic and costly licensing regime.
Licensing of indigenous Mining as Small Scale Mining should only be the authorization of the act by relevant local and National authorities including Community Leaders or local governance system. So, for the ultimate aim for Wealth Creation and improving the Nation’s Foreign Currencies position, Medium Scale Mining with adherence to Local and International Standards is recommended for rich Ghanaians and their foreign or Chinese accomplices.
Small Scale Mining, like Prostitution another global risk, since both have considerable impacts on the environment, human health, and social safety/ security otherwise social stability should not and must not be promoted as a business for wealth creation,. This should be so, since most of the actors are only forced into the act for survival. Consequently, as stated, the main answer is Intervention by the Government with multifaceted approaches especially win-win solutions to be combined with Alternative Livelihood Projects to contain and control the associated risks.
History tells that Small Scale Mining is a survival operation of gather and sell (Galamasey in broken English) which started before the exploration by European Colonial in 15th century. Hence, Small Scale Mining or Subsistence Mining existed in the enclave now called Ghana before the coming of the Europeans, who on arrival termed the enclave as the Gold Coast and termed the then mining activity as Small Scale Mining in English or Economics due to the method of operations and by nature of the output. So, globally Small Scale Mining is regarded as an informal mining activity by millions of people including women and children, whose method of operations involved no sophisticated technology and no use of Substantial expenditure or elaborate capital and the operation is done in a disorderly and an irresponsible manners.
History tells that Small Scale Mining was banned in 1906 in the Gold Coast by the British Colonial Masters.
Enter the First Republic of Ghana through the fighting spirit of the Regime of CPP under President Dr Kwame Nkrumah, the Ban on Small Scale Mining was maintained. But by the mining Act 1962, the CCP bought or nationalized some of the Underground Mines with the exception of Ashanti Gold Company Obuasi and established the State Gold Mining Corporation with subsidiaries in Prestea, Tarkwa etc. The ban on Small Scale Mining was maintained up to 1986, when it was lifted.
As part of win-win solution, the PNDC in 1986 during the Structural Adjustment Program under the auspices of the World Bank, lifted the ban on Small Scale Mining by bring it into Official Recognition by a legalization process at Section 77 of the Minerals and Mining Law 1986 (PNDC Law 153). Hence Artisanal Small Scale Mining or Galamasey was legalized or given official recognition by the PNDC in 1986. This is part of the true history of Small Scale Mining in Ghana.
History tells that to support the Legalization of Small Scale Mining, the PNDC followed the Legalization process which is a one stop destination by the process of Formalization or Regularization or trip to destination or Legalization by the three important Small Scale Mining Laws in 1989 as part of Program of Actions to Mitigate Poverty. These laws include the Small Scale Gold Mining Law 1989 (PNDC Law 218).
Another important process of Formalization of Small Scale Mining by the PNDC was provision of control marketing of gold and diamond from the Small Scale Mining Sector. So, the PNDC established the Precious Minerals Marketing Company with Precious Minerals Marketing Company Law 1989 (PNDC Law 219).
So as part of measures to contain the associated risks through holistic approach, the PNDC through PNDC Law 218 of 1989 and PNDC Law 219 of 1989 came out with strong conditions or strict limitations on Small Scale Gold Mining , namely (a). Reserved for Citizens of Ghana. (b). The method of operation does not involved sophisticated technology and no use of substantial expenditure. (c). Should be allowed if and only if it is in the interest of the affected Community. (d). The Gold and Diamond or Precious Minerals from the Small Scale Mining Sector must be sold to the Precious Minerals Marketing Company, which by law enjoyed the monopoly as the buyer and exporter of gold from the Small Scale Mining Sector..
Due to the fact that the Ghanaians have the propensity to front for foreigners, the PNDC took the pains to provide the interpretation of a Citizen of Ghana at Section 21 of the Small Scale Mining Law 1989, PNDC Law 218 which as copied and pasted at Section 111 of the Minerals and Mining Act 2006 (Act 703) clearly excluded foreigners from operating in the Small Scale Mining Sector. So the Ghanaian Authorities allowing erred by allowing Foreigners to operate in the Small Scale Mining Sector in 2012 with section of the Minerals and Mining General Regulation 2012 (LI 2173), Minerals and Mining Regulation (Support Services Regulation 2012 (LI 2174). These two Regulation were/are against the letter and spirit of the Small Scale Mining Law, especially restricted to only Ghanaians.
These two Regulations in 2012 and the associated Ghana Investment Promotion Center Act 2013 (Act 865) which failed to make Small Scale Mining as no go area for Foreigners, so were against the parent Small Scale Mining Law of Ghana, since they created very lucrative windows for Ghanaians to freely front for foreigners especially Chinese to bring thousands of excavators and Chafang machines to Ghana to invade the Small Scale Mining Sector.
The effect is the massive destruction of the environment found within one year that is by 2013 which warranted the establishment in 2013, the Inter-ministerial Committee and National Security Taskforce to curb the destruction of the environment without success. So, the destruction of the environment and the economy of Ghana still persisted and made the Head of State in 2017 to pledge his Presidency on the line due to the very poor understandings on what is real Small Scale Mining and what fueling Small Scale Mining, Since his Regime failed to take the warning of Dr Tony Aubynn for the Review on the Laws on Small Scale Mining as stated above.
The situation was further worsened when the Precious Minerals Marketing Company (PMMC), which PNDC gave the monopoly for buying and exporting of Gold from the Small Scale Mining was condemned to be the National Assayer, so as to allow Foreigners as buyers and exporters of gold from the Small Scale Mining Sector.
But the PMMC due to possible corruption refused to obey the relegation law and continued to conduct illegal acts. Google and read ‘Rot at PMMC 2.5 Billion US Dollars Revenue lost’ and also Google and read ‘Missing Gold, how Ghana lost over 6 Billion US Dollars to major trading partners’ Cry the Beloved Country. Hence though we should be happy with the work of the GoldBod so far, it should be appreciated that the GoldBod has come to expose our past unpatriotic deeds or misdeeds or the level of incompetency, so the state of affairs before the passage of the GoldBod 2025 (Act 1140) is self-inflicted. So we must burry our heads in shame for not able to think outside the box between 2023 and 2025 with Gold for Oil Deal and GoldBod respectively.
Bank of Ghana allegedly reported of losses incurred by the Gold for oil Deal. This should not be news or strange, since is expected due to likelihood of poor management. Corporate Governance Structure for the deal and corruption by some operators.
So, the indefatigable Lawyer Sammy Gyamfi Esq must watch it, otherwise like COCOBOD with huge debts and the yearly rituals of syndicate external loans taste hence robbing Peter to pay Paul syndrome or like the Guyana Gold Board which recorded significant losses over three years from 2012 to 2014, the GoldBod if Lawyer Sammy and his hardworking team are not very meticulous, the Gold may be the nemesis of Ghana especially Economically, Environmental and Socially. So the best way, is the need to contain and control Small Scale Mining with all sort of multifaceted approach including alternative livelihood project and not to promote it but an addition of Medium Scale Mining Sector as stated below.
So, the Authorities in Ghana need to understand that a decorated donkey is still a donkey, so, Small Scale Mining is Galamasey and Galamasey is Small Scale Mining and the best way to deal with the menace in the Small Scale Mining Sector is to appreciate that by the history of the World hence including Ghana, Scale Mining is an time-tested indigenous or traditional or subsistence mining for survival or livelihood or subsistence hence the cure is Alternative Livelihood.
So both the Minerals Commission and the GoldBod must see to the reclassification of the Mining Sector to include a third Sector as Medium Scale Mining Sector which sector allows the adherence to Ghana Investment Promotion Centre law 2013 (Act 865). Hence the use of limited capital and share of equity below that for Large Scale Mining as done by Member Mining Companies of the Ghana Chamber of Mines and by strict compliance with local and International Standards. These include the employment of Mining Manager, Environmental Manager, Safety Manager, and Health Manager to ensure responsible mining for the operators of Licensed Small Mining Companies bracket who are for Wealth creation or wealth accumulation as by tycoons. Hence need to allow them to freely operate jointly with foreign partners since Mining is capital intensive.
The reclassification of the Mining should relegate Small Scale Mining otherwise known as Indigenous Mining or the time-tested Galamasey operation as poverty alleviation or livelihood project for rural communities and renamed as Community Small Scale Mining. So, that for this mining method, it should be permissible if and only if it is in the Community’s interest to do Small Scale Mining and should be done with the use of simple tools, no substantial expenditure .
Community Small Scale Mining should be made strictly for Ghanaians with zero or no foreign participation. The concept of Community Small Scale Mining is to make Small Scale mining responsible, afford due diligence, traceability of the gold, no use of mercury etc with regulations to ensure the protection of the environment, protection of the operators themselves and protection of the public or the associated affected communities. Companies like Gold Ridge Company by Dr Nana Yaw Duodu should be supported and encouraged to support Community Small Scale Mining.
Otherwise, the truth must be told that almost all the licensed Small Scale Miners worked and are working illegally. When we consider the rightful definition of illegal mining as mining without mining rights, with mining rights but not adhering to the terms and condition of the mining rights as well as illegally working with foreigners behind the veil against mining laws and not posting reclamation bonds or not recovering mine out areas.
