Proposed reset for the mining sector

By  Kwabena Okyere Darko-Mensah

To achieve a sustainable and well-regulated mining industry, the following reforms are proposed to address illegal mining, environmental degradation, weak enforcement and governance challenges within Ghana’s mining sector.

Decentralize mining licensing and involve chiefs

Mining licensing should be decentralized to include traditional authorities. The District Mining Committees already established by law should be fully operationalized and empowered. All mining license applications should begin and end at the district level.

Revenue generated from mining should be distributed as follows:

• 18% to mining communities for development and investment;
• 2% to district administrations;
• 5% for reclamation, replanting and environmental restoration;
• 5% for royalty payments; and
• 70% to the national coffers for general national development.

Large-scale mining companies, according to the Ghana Chamber of Mines, contribute about 26 percent of gross revenues to the state through PAYE, royalties, corporate taxes, CSR and other payments. Small-scale miners, operating at relatively lower costs, can potentially contribute the same or even more if properly regulated.

Introduce a mobile licensing regime

A mobile licensing regime should be introduced to bring more miners into the formal sector. The first phase could target rock miners, who generally cause less environmental destruction compared to alluvial mining operations.

Assign engineers to supervise licensed miners

Every mining license issued should have a designated mining engineer responsible for supervision. This will create jobs while ensuring professionalism, safety compliance, proper use of approved chemicals, water protection, land restoration and adherence to environmental standards. Such a system will help establish uniform mining standards nationwide and strengthen Ghana’s reputation as a responsible gold producer.

Establish processing centers and tailings dams

Tailings dams should be developed for alluvial miners under the supervision of assigned engineers. Alternatively, centralized processing centres should be established to eliminate pollution of water bodies.

A transportation support mechanism similar to those used in the fuel and cocoa sectors can be introduced to make access to these centres affordable. This will promote sustainable mining and attract credible investment into the sector while reducing the demonization of mining activities.

Restructure GoldBod ownership

The ownership structure of GoldBod should be reviewed from its current 100 percent government ownership model to:

40% Government;

25% Miners;

20% Traders; and

15% Traditional Authorities.

This structure will ensure that all key stakeholders participate in policy formulation, environmental protection, land-use planning, responsible sourcing and restoration efforts, similar to successful commodity governance models such as those in Côte d’Ivoire’s cocoa and coffee sectors.

 Strengthen reclamation and reforestation efforts

Local licensing committees should be responsible for reclamation and replanting programmes in mining communities. According to global studies, every dollar invested in land reclamation can generate returns ranging from seven to thirty dollars. These opportunities should not be overlooked.

Mining associations should collaborate on reclamation projects and may be required to provide environmental bonds to guarantee compliance.

 Establish a Mining Bank

A dedicated Mining Bank should be established to provide financial support to legitimate miners. This will reduce dependence on illicit sources of funding that often disregard environmental standards and responsible mining practices.

 Convert abandoned mines into community mining projects

More abandoned mine sites and old shafts controlled by large mining companies should be reclaimed and converted into community mining projects or tributer schemes. This will create jobs for young people and reduce unsupervised illegal mining activities.

Redevelop mining towns

Mining communities should benefit visibly from the wealth generated in their areas. Mining towns should therefore be redeveloped, upgraded and regenerated through properly funded projects supervised by the Regional Coordinating Councils.

Such investments will improve living conditions, reflect the contribution of mining regions to national development and help attract quality investment into the sector. Decentralize licensing of development minerals

Licensing for development minerals should begin and end at the regional level under the supervision of the Regional Minister and relevant authorities.

Deploy technology to protect rivers

Solar-powered CCTV cameras should be installed along major river bodies to complement river guard operations and strengthen surveillance against illegal mining activities.

 Engage communities to protect forests

Community members should be directly engaged and compensated to protect forests from irresponsible and illegal mining activities. Funding for these initiatives can come from revenues generated through carbon credit programmes.

By implementing these reforms, Ghana can build a mining sector that is environmentally responsible, economically beneficial, community-centered and globally competitive.

The author is the Member of Parliament (MP) for Takoradi

Post Views: 58