SMALL SCALE GOLD MINING IN GHANA: PROVIDING POSSIBLE SOLUTIONS TO ITS ENVIRONMENTAL IMPACTS

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SMALL SCALE GOLD MINING IN GHANA: PROVIDING POSSIBLE SOLUTIONS TO ITS ENVIRONMENTAL IMPACTS

BY P. O. NELSON MARCH 2014

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Contents Abstract............................................................................................................................ 2 Word Count:

3345 .................................................................................................................... 2

Chapter 1 ......................................................................................................................... 2 1.1 Small scale mining ................................................................................................... 3 1.2 Brief Overview of Mining in Ghana.................................................................... 4 1.3 Overview of Small Scale Mining in Ghana ...................................................... 4 1.4 Small-Scale Gold Mining in Ghana: The Market, Players and its Legal Framework ............................................................................................................................. 4 1.5 Benefits of Small scale Mining to Ghanaians ................................................ 6

Chapter 2 ......................................................................................................................... 7 2.1`Environmental Impact of Small Scale Gold Mining In Ghana.................. 7 2.1.1 Mercury Pollution .............................................................................................. 7 2.1.2 Land Degradation ........................................................................................... 8 2.1.3 Water Pollution .................................................................................................. 8 2.2 Barriers to implementing environmental practices in the small-scale gold mining Sector in Ghana .......................................................................................... 9

Chapter 3 ........................................................................................................................10 3.1

Possible Solutions to Tackle Environmental Impacts ..............................10

Chapter 4 ........................................................................................................................11 4.1

Conclusion...................................................................................................................12

References .....................................................................................................................13

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Abstract The purpose of this paper is to carefully examine Ghana’s small scale gold mining sector, its adverse impact on the environmental and lastly to propose possible solutions that can help Ghana improve the environmental conditions in the sector. The small scale gold industry in Ghana has contributed immensely to the socioeconomic growth of the country through employment, foreign exchange earnings, reduction of poverty etc but accompanying these achievements are severe environmental implications such as water pollution, land degradation and mercury pollution. Although there are several initiatives by Ghana to improve the environmental performance in the sector, the paper concludes that, Ghana’s quest to improve the environmental conditions in the small scale gold sector can be achieved if Ghana employs the recommended policies in addition to the existing initiatives.

Word Count: 3338

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Chapter 1

1.1 Small scale mining Small-scale mining as at now has not gained one generally accepted definition but has been defined differently around the world by both the academia and various international bodies. For instance the IIED defines small Scale mining as “mining typically by individuals, groups, families or cooperatives with minimal or no mechanization, often in the informal (illegal) sector of the market�1. The UN on the other hand uses the volume of mineral mined to draw the line between small scale mining and large-scale mining such that 50,000 and100, 000 tons of ore per annum were considered as the boundary for underground mines and open pits mines respectively. However this definition has raised a lot of question and objections, since many are of the view that as the amount of ore required to recover one ton of mineral such as diamond is not necessarily the same as for gold. In most of the cases the definition has differed from one country to another due to the criteria used in defining small scale mining. For instance, whiles in Zimbabwe the size of concession and the available capital investment is used as criteria to define small scale mining, capital investment, technological requirement and labour are used as the parameters to define small scale mining2. Although there is not such a widely accepted definition, most of the definitions have major similarities which include the following - in most cases the activities and operations are limited to only the national’s of the country. Secondly, small scale mining does not require skilled labour and sophisticated technology. Moreover, the levels of production and capital investment are quite low

According to World Bank, currently about 13 million people in 30 countries across the surface of this earth are estimated to be involved small-scale mining. The world has witnessed a substantial increase in the activities and operations of small scale miners over the past years, especially in many African and Asian countries and this has been largely attributed to the financial crises the world has experienced in recent times which led many poor, in particular women and children, into small mining3.

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Hentschel, T., Hruschka, F., & Priester, M. (2002). Mining, Minerals and Sustainable Development:Global Report on Artisanal & Small-Scale Mining. IIED and WBCSD. http://pubs.iied.org/pdfs/G00723.pdf (last visited,1/14/2014) 2

UNECA. (2002). Compendium on best practices in small scale mining . Ecommission for Africa. http://www.uneca.org/sites/default/files/publications/compendium-on-best-practices-in-smallsaclemining.pdf (last visited,1/14/2014) 3

The World Bank http://web.worldbank.org/WBSITE/EXTERNAL/TOPICS/EXTOGMC/0,,contentMDK:20246087~menuPK:509412~pagePK:148 956~piPK:216618~theSitePK:336930,00.html

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1.2 Brief Overview of Mining in Ghana The West African nation with an estimated population of over 25 million people, located on the Gulf of Guinea, is hugely endowed with many mineral resources. Ghana which covers an area of 238,555 square kilometers, and shares borders with Cote D’Ivoire, Burkina Faso, and Togo to the west, north and south respectively. Ghana during the period under the British colony was called the Gold Coast due to the country’s abundance of gold reserves suggesting that mining activities in Ghana date back more than 2000 years. The West African country geographically lies within the Precambrian Shield of West Africa. It can be said that the Precambrian rock units in the country serves as the primary source of the country’s major mineral products which includes gold, bauxite, diamonds, and manganese. As at 2005, Ghana was the second largest producer of gold in sub-Saharan Africa, and also currently considered to be a leading exporter of bauxite, diamonds, and other mineral resources4

1.3 Overview of Small Scale Mining in Ghana Over the past years till now, small scale mining has been a pivotal component in Ghana’s economy. Since 1983 when Ghana went through structural adjustment in various sectors of the economy, the small scale mining sector made up of Artisans and Small Scale miners has experienced significant growth, such that the sector currently employs an estimated workforce between 1 and 2 million contributing about 10% of gold produced in the country . The significant growth in Ghana’s Small scale Mining has been driven largely to some extent due to low barriers to entry into the small scale mining sector and the failure of Ghana’s agriculture sector to provide and support the lives people especially in the country’s rural communities5.

1.4 Small-Scale Gold Mining in Ghana: The Market, Players and its Legal Framework For one to appreciate and understand the nature of the small scale mining sector in Ghana it is important to know the players involved in the small-scale mines, the small-scale gold market and its legal framework. Generally there are legally two main distinct types of small-scale gold mines that can be found in Ghana. Since there is a formalized process for mining gold on the small-scale, there are legally recognized small-scale mines. Permits to obtain a piece of land to operate Small-

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Yelpaala, K., & Ali, S. H. (2005). Multiple scales of diamond mining in Akwatia, Ghana:addressing environmental and human development impact. Resources Policy 30 , 145–155. 5

Hirons, M. (2013). Decentralising natural resource governance in Ghana: Critical reflections on the artisanal and small-scale mining sector. Futures , 1-11.

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scale mines can generally be acquired for a parcel of land by Ghanaian citizens who is above the age of 18 years .Although such a process exist for the acquisition of permits, it is estimated that about 85% of the country’s small-scale mines have not registered for these permits . This is largely so because, it has been reported that the process of formally getting a permit to operate as a small scale mine is seen as quite cumbersome and highly inefficient which strongly discourages citizens and foreigners from registering. Again many are also of the view that fees paid to obtain permits were very high coupled with excessive paperwork during the process. In Ghana, legally registered mines are commonly known as ‘‘small-scale mines’’ and those without permits are called ‘‘galamsey’’ mines. In actual fact the operations of ‘‘small-scale’’ mines and ‘‘galamsey’’ mines cannot be easily differentiated. This has made local citizens and academicians to use the term ‘‘galamsey’’ as jargon for any small-scale miner or mining venture in the country.6. In Ghana, Small-scale gold miners by law are not allowed to work on concessions of large-scale gold miners. But most often, small scale miners who do not have permits called (galamsey) encroach on these concessions of the large scale gold miners which has generated tension and conflicts between individuals , communities and large scale gold companies . Due to such occurrences in the past, many operators of large-scale gold mines have taken proactive steps to formalize and regularize the operations and activities of illegal small scale gold miners (galamsey) miners working on most of their concessions. As at the end of 2004, large scale gold mining companies such as, Goldfields Ghana Limited at Abosso Goldfields Limited at Damang and Bogoso Gold Limited at Bogoso, have had special arrangements and cooperated with the small scale gold miners in their respective vicinity to work on their concessions7.

In 1989, Ghana obtained the legal framework for registration to operate small-scale gold mines, produce and sell gold in the sector. The legal frame work gave birth to the Small-scale mining law that is the PNDCL 218 which led to the establishment of the Small-scale Mining Project working under the mandate of Ghana Minerals Commission. The Small-scale Mining Project which was later changed to the Small-scale Mining Department under the auspices of the commission was task to promote the activities of the small scale miners and also provide technical assistance to both the prospective and registered small-scale miners in the country. In providing a market for the gold produced in the country by the small scale miners the government set up the Precious Minerals Marketing Corporation (PMMC) to buy and sell gold in the country. The government further gave the green light to private companies to involve in the purchasing and selling of gold 6

Teschner, B. A. (2012). Small-scale mining in Ghana:The government and the galamsey. Resources Policy 37 , 308– 314. 7

Amankwah, R.K., Anim-Sackey, C., 2004. Promoting co-operation between small- and large-scale mining companies in Ghana, Mining Magazine, Society of Mining, Metallurgy and Exploration Inc., pp. 36–39.

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in the country. This allowed two companies namely the Precious Metal Refinery Limited and Miramex into the small scale mining market not only to buy gold from small-scale miners but also to sell gold8.

1.5 Benefits of Small scale Mining to Ghanaians Small -scale gold mining in Ghana has made significant contributions to many livelihoods and communities and the country as a whole both socially and economically. It has been a source of employment for Ghanaians providing both part- and full time jobs for the people. As at 2003, the registered small-scale gold in the country had employed over 100,000 people with almost the same number working as galamsey (unregistered small scale miners). The operations and activities of small scale mines have led to massive economic growth providing both direct and indirect monetary contribution to the Ghanaian economy as seen in 2003 when the small-scale mines sold about 1.5 million ounces of gold. Their existences in the rural areas of the country have not only boosted local economic activities but it has also contributed immensely in towards poverty reduction in most towns and communities. The activity has decreased the mass rural migration of the youth in the rural communities into the urban cities of the country since and has also shaped most of the unskilled labor into semi-skilled and skilled workers9.

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Amankwaha, R. K., & Anim-Sackey, C. (2003). Strategies for sustainable development of the small-scale gold and diamond mining industry of Ghana. Resources Policy 29 , 131–138. 9

Supra note 8

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1

Chapter 2

2.1 Environmental Impact of Small Scale Gold Mining In Ghana In general, mining activities have affected our Environment in many ways which include deforestation, habitat loss, land degradation, and water and air pollution from waste dumps and tailings disposal. Most of these effects have affected the livelihoods and health of the poor especially the poor in the mining communities. Small scale gold mining in Ghana has caused severe environmental problems caused in the mining communities over the years but the most principal environmental threat to the environment is mainly mercury pollution from gold processing and land degradation10. 2.1.1 Mercury Pollution The activities and operations of small scale gold mining in Ghana have given rise to mercury pollution which has become a pressing problem in the small-scale gold mining sector over the past decades. Small scale gold operators use mercury to amalgamate gold but, more often the mercury is discarded into the environment which is transformed into toxic methymercury. Numerous studies and research carried on the use of mercury have revealed that the use of Mercury by small scale gold miners affects our environment in many ways. After the mercury is released in the atmosphere indigenous populations and surrounding Small-scale gold miners inhale noxious mercury fumes. Again studies have shown that in the rural communities of the country, many small scale miners come into contact amalgam without any protective gloves and also most of the water, rivers .stream etc consumed in these rural communities is contaminated with concentrations of mercury.11 According to a report by the World Bank in 2005, most of the mercury used in the country were recorded in Obuasi and Tarkwa – the two major towns in Ghana that are hugely involved in small scale gold mining activities .The publication further stated that as at 2004, between 4 to 5 t of mercury were discarded into the environment every year due to the operations and activities of small scale gold mines in the country.12

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Hilson, G. (2002). The Environmental Impact of Scale Mining in Ghana:Identifying problems and Possible solutions. The Geographical Journal , 168 (1), 57-72. 11

Hilson, G., Hilson, C. J., & Pardie, S. (2007 ). Improving awareness of mercury pollution in small-scale gold mining:communities: Challenges and ways forward in rural Ghana. Environmental Research 103 , 275–287. 12

World Bank (1995), Staff Appraisal Report, Republic of Ghana, Mining Sector Development and Environmental Project, World Bank Report No. 13881-GH, Industry and Energy Operations, West Central Africa Department, Africa Region at http://wwwwds.worldbank.org/external/default/WDSContentServer/WDSP/IB/1995/05/19/000009265_3961019101227/Rendere d/INDEX/multi0page.txt

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2.1.2

Land Degradation

Land degradation is also a second major environmental effect of small-scale gold mining in Ghana. Land degradation here is where small scale gold miners clear vast land of the forest, dig up trenches and the upturning of vegetation due to their operations and activities leaving the land bare. Such acts of the small scale gold mines strips the land of its topsoil most at times uncovered and exposes the land to agents of erosion and deprives the land of its nutrients and renders the land infertile for agricultural purposes.

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. As at 1995 about 15,000 ha of land in Ghana especially in

the areas of Takwa, Obuasi, Bibiani, Bogosso have been potentially affected by the activities and operations of small -scale gold mining14. My own visit to some of the mining communities such as Bibiani, Tarkwa and Obuasi in Ghana couple of years ago revealed that the operations and activities of small scale gold mining companies in mining has caused a lot of damage to lands in the communities mentioned above which have affected the livelihoods of the indigenes. Many of the pits dug in these areas were left uncovered which has become breeding grounds for mosquitoes. Large areas of land have also been cleared in many of the forest to shelter small scale gold miners in these communities which have contributed to the changes in the local hydrological patterns. 2.1.3 Water Pollution Apart from the use of mercury and land degradation, activities of small gold mines usually divert major rivers, streams and other water bodies away from the mines. Such exercise by small scale miners tends to have severe e consequences for the quality and availability of surface and ground water especially in the rural communities. The existences of many small scale gold mines in Tarkwa, a major mining community in the western part of the country has been a major source of water pollution. Problems often associated with water pollution which has been identified in small scale gold mining areas such as Takwa, Obuasi, Bibiaini etc includes chemical pollution of ground water and streams and siltation through increased sediment15. These are serious environmental problems that need immediate and prompt attention by the government of Ghana but surprisingly not much has been seen from various governments in handling these severe and other related environmental problems. Studies have revealed that though previous governments have all taken initiatives and policies aimed at ensuring best practices of 13

Amegbey, N. A., Dankwa, J. B., & Al-Hassan, S. (1997). Small Scale Mining in Ghana :techniques and environmental considerations. International Journal of Surface Mining, Redamation and Environment , 11, 135 - 8. 14

Supra note 12 Akabzaa, T., & Darimani, A. (2001). Impact of Mining Sector Investment in Ghana: A Study of the Tarkwa Mining Region. at http://www.saprin.org/ghana/research/gha_mining.pdf (last visited , 13/01/2014) 15

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small scale gold mines to reduce the impact of their activities on the environment, many of these initiatives have not yielded the needed results to the following impediments:

2.2 Barriers to implementing environmental practices in the small-scale gold mining Sector in Ghana First, inadequate funding coupled with difficulties in securing loans and other credit facilities are preventing miners from having sound environmental operations and practices often leading to poor environmental activities and practices adopted at small-scale gold mines in Ghana. With limited finances, the small scale gold mines have no option than to turn cheap, haphazard and environmentally unfriendly operational practices and methods. This practice is usually found with the illegal small scale gold mines in the rural communities of the country. Improper or a lack of planning by both small scale gold mines and the government which has seen environmental issues not involved at the planning stages of operations by various stakeholders in the small scale gold mining sector over the years have always been a challenge. Failure to involve environmental issues at that stage usually results in substantial environmental liabilities in mining communities with no effort made to rehabilitate mined areas. Lastly, illegal small-scale gold miners operating on idle concessions of large-scale mining companies due to financial constraints also causes massive damage to the environment. In such instances, there are no security checks on this idle concession to prevent encroachers giving room for illegal small scale miners to abuse the land16.

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Aryee, B.,et al (2003). Trends in the small-scale mining of precious minerals in Ghana:a perspective on its environmental impact. Journal of Cleaner Production 11 , 131–140.

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Chapter 3

3.1 Possible Solutions to Tackle Environmental Impacts In our attempt to propose policies and initiatives that can help Ghana combat the effects of the operations of the small scale gold mines on the environment one must be quick to point out some of the initiatives that are already in place. Regulatory initiatives As mentioned earlier on, in 1989, Ghana established a legal framework within which mandate small-scale gold mining companies to register their operations. The legal framework does not only ensure the licensing of small scale mines but also seek to provide technical support to the small scale industry in the country. Furthermore in ensuring that environmental impacts are reduced to its minimum, government now requires small-scale miners in Ghana as preconditions to secure an environmental permit from the Environmental Protection Agency (EPA) before receiving the approval to mine. The Environmental Protection Agency in granting the environmental permits takes into consideration, operational methods to be used by the small scale mine, a site plan of the area, anticipated environmental impacts, proposed mitigation measures etc17. Provision of education and technical support

Ghana has also rolled out educational tools that have helped to minimize environmental impacts of small-scale mining activities and operations in the country. Operators of small scale mines in Ghana are being educated on which mining and processing methods to use to prevent environment damage .Again they are also encouraged to adopt efficient managerial practices and environmental damage control practices. Most of this education takes the form of training workshops which deals with issues such as mercury pollution abatement, environmental damage control, health and safety aspects of operations of small-scale miners18.

Notwithstanding these policies of the government of Ghana which have contributed in reducing the environment impact of small scale mines in the country, Ghana can employ the following recommended policies and initiatives as possible solutions in tackling environment impact in addition to the existing measures: 

There should be enforcement of legal framework by excessive monitoring and policing of the small scale mining activities since penalties for violation are inadequate to serve as a deterrent;

17 18

Supra note 16 Ibid 16

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Though education has contributed its quota, extensive publicity and social pressure should be pursued to bring about changes in the behavior of the both legal and illegal small scale miners

The Government of Ghana should raise funds and credit facilities or through the provision of subsidies to support small scale miners in their quest to pursue environmental sustainability.

Lastly Government of Ghana should commission and conduct a nationwide study on use of mercury in the small scale mining sector

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Chapter 4

4.1

Conclusion

The various degrees of environmental damage, mentioned above which have been as a result of the operations and activities of the small scale mining sector have been a source of concern to Government of Ghana. However, given the socio-economic benefits of the small scale gold mining industry to the country, Ghana needs to work around the clock to find lasting solutions to the environmental challenges. Though the Government of Ghana has already set out interventions and measures such as the legal framework, education

and other training programs to mitigate these adverse environmental

impacts, the writer is of the view that Ghana can employ the recommended policies in addition to what is already in existent to effectively control and reduce the environmental impact associated with small scale gold mining in the country.

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References Amankwaha, R. K., & Anim-Sackey, C. (2003). Strategies for sustainable development of the small-scale gold and diamond mining industry of Ghana. Resources Policy 29 , 131–138. Amankwah, R.K., Anim-Sackey, C., 2004. Promoting co-operation between small- and largescale mining companies in Ghana, Mining Magazine, Society of Mining, Metallurgy and Exploration Inc., pp. 36–39. Akabzaa, T., & Darimani, A. (2001). Impact of Mining Sector Investment in Ghana: A Study of the Tarkwa Mining Region. at http://www.saprin.org/ghana/research/gha_mining.pdf (last visited, 13/01/2014) Aryee, B., Ntibery, B. K., & Atorkui, E. (2003). Trends in the small-scale mining of precious minerals in Ghana:a perspective on its environmental impact. Journal of Cleaner Production 11 , 131–140. Amegbey, N. A., Dankwa, J. B., & Al-Hassan, S. (1997). Small Scale Mining in Ghana :techniques and environmental considerations. International Journal of Surface Mining, Redamation and Environment , 11, 135 - 8 Hentschel, T., Hruschka, F., & Priester, M. (2002). Mining, Minerals and Sustainable Development:Global Report on Artisanal & Small-Scale Mining. IIED and WBCSD. Hirons, M. (2013). Decentralising natural resource governance in Ghana: Critical reflections on the artisanal and small-scale mining sector. Futures , 1-11. Hilson, G., Hilson, C. J., & Pardie, S. (2007 ). Improving awareness of mercury pollution in smallscale gold mining:communities: Challenges and ways forward in rural Ghana. Environmental Research 103 , 275–287. Hilson, G. (2002). The Environmental Impact of Scale Mining in Ghana:Identifying problems and Possible solutions. The Geographical Journal , 168 (1), 57-72. Teschner, B. A. (2012). Small-scale mininginGhana:The government and the galamsey. Resources Policy 37 , 308–314. UNECA. (2002). Compendium on best practices in small scale mining . Ecommission for Africa. World Bank (1995), Staff Appraisal Report, Republic of Ghana, Mining Sector Development and Environmental Project, World Bank Report No. 13881-GH, Industry and Energy Operations, West Central Africa Department,Africa Region Yelpaala, K., & Ali, S. H. (2005). Multiple scales of diamond mining in Akwatia, Ghana:addressing environmental and human development impact. Resources Policy 30 , 145–155.

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