Community Mining Scheme in Ghana: A Solution to Ending Galamsey?
Ghana’s newly-appointed Minister of Lands and Natural Resources Samuel Abu Jinapor has been vocal in his belief that illegal mining (galamsey) can be tackled through the expansion of the Community Mining Scheme (CMS) in which host mining communities are embedded into the mining value chain. The initiative, which was launched during President Nana Addo Dankwa Akufo-Addo’s first term, is the government’s response to tackling galamsey, with the aim of creating thousands of new jobs in host communities lawfully, under the purview of the Minerals Commission and exclusively for Ghanaians. Yet not all stakeholders are convinced.
Significance – Community Mining Scheme
The CMS is a policy which is meant to align with the Minerals and Mining Act, 2006 which regulates the small-scale mining industry. The government aims to create 16000 jobs nationwide through the scheme by legitimising the participation of residents of host mining communities in small-scale mining. For instance, more than 55 mining licences have been issued to mining communities nationwide[1] and the regulation thereof is meant to ensure a clamping down of practices which fall outside of the law, namely the pollution of waterbodies. Indeed, the harmful effects of illegal mining are significant, with the Ghana Water Company predicting that the country may need to import all its drinking water within two decades if contamination continues at its current pace.
During the first term of Akufo-Addo, the fight against galamsey was a flagship policy area and the current administration seeks to build upon the work done. All small-scale mining activity (both legal and illegal) was banned for 22 months between February 2017 and December 2018. A military operation, Operation Vanguard, was launched to enforce this ban and dismantle illegal mining sites; a community mining project was launched[2] and the Inter-Ministerial Committee on Illegal Mining was established. However, critics have decried the lack of results from these initiatives, especially the disbanding of the IMCIM in January of this year.
Outlook – A Mixed Picture
1. Demonstrative political will and collaboration are crucial for broad-based buy-in. This is Akufo-Addo’s final term in office so we can expect his decision-making to be influenced by legacy considerations. Even still, there are varying levels of scepticism surrounding the government’s plans to tackle galamsey, and obtaining the buy-in of local communities and the private sector will be crucial for the delivery of successful outcomes. For instance, the CMS is meant to be consultative and collaborative, particularly at the community level yet some traditional authorities, such as Okyenhene Osageyfo Amoatia Ofori Panin, overlord of Akyem Abuakwa, have recently denounced the scheme, saying that they ought to be consulted before licenses are awarded such that their environments are protected. Okyenhene’s words are combative: “We are coming to rise up against that policy and we will not agree to the community mining initiative[3]”. Elements within the private sector are also unenthused about government promises, sharing with us their concern that government promises “lack sincerity” and that “implementation” is the issue.
2. CMS: an opportunity to grow small-scale mining industry. Linked to the question of government’s willingness to change the status quo is the question of the extent to which government is committed to long-term transformation. Figures vary, but there is consensus that small scale mining engages a significant proportion of the population – between 200,000 and 5 million people both directly and indirectly. Given this fact, there is a huge opportunity to examine the sector and identify ways in which the approx. 300 registered small-scale mines can be scaled up to become medium or even large-scale indigenous companies. This would involve increasing efficiency and finding ways to reduce the production losses which are occurring- somewhere between 20% and 30%. This would go hand in hand with building capacity locally: indigenous ownership of the mining sector - which, along with quarrying accounted for GHC4.02 billion of direct fiscal receipts in 2019- is marginal[4].
3. Scrutiny of, and investment in, implementing bodies. Enforcement of the ban on all small-scale mining in 2017/18 was weak, despite the deployment of security forces under Operation Vanguard. Significant resources will need to be invested in oversight agencies such as the Minerals Commission, Environmental Protection Agency and Precious Minerals Marketing Company (PMMC), the body responsible for assaying and monitoring gold exports. As it stands, the country is estimated to lose millions of dollars yearly to illegal smuggling. An investigation has been launched by Jinapor into how the smuggling is perpetrated and will look closely at air and sea-ports, the Minerals Commission, PMMC and the Ghana Revenue Authority.
4. No mercy for galamseyers. We can expect to see an enhanced crackdown on those operating illegally, such as the special military operation that has recently been sanctioned to tackle galamsey in the north of the country. The rate of illegal site destruction has seen a marked increase in the first quarter of 2021 yet illegal mining is known to be done with the complicity of officialdom and the nationals of foreign powers with whom Ghana has diplomatic relations, namely China. A clamp-down, if applied impartially, could be a disruptor to these relationships - a sacrifice for Ghana’s long-term gain.
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[1]http://www.faapa.info/blog/community-mining-scheme-to-create-16000-jobs-nationwide-minister/
[2]Providing training on environmental best practices, registration with the EPA and minerals commission and the award of small, local concessions./
[3]https://www.ghanaweb.com/GhanaHomePage/NewsArchive/We-ll-resist-government-s-community-mining-programme-because-it-is-galamsey-in-disguise-Okyenhene-1224181
[4]https://ghanachamberofmines.org/wp-content/uploads/2020/05/Performance-of-the-Mining-Industry-in-2019.pdf