Ghana’s economic innovation and galamsey crisis: How other nations handle small-scale mining (Part 1)

Illegal small-scale mining, or galamsey, continues to dominate headlines in Ghana due to its significant environmen­tal, social, and economic impact. While the trade generates income for hundreds of thousands of Ghanaians, its long-term effects threaten the nation’s water bodies, forests, and sustainable develop­ment. This article explores how Ghana can transform the pains and pleasures of galamsey into a more productive national initiative, leveraging global best practices to protect its environment while fostering economic growth. By incorporating facts, figures, and comparative global examples, this feature seeks to chart a sustainable path forward.

Historical overview of galam­sey in Ghana

Galamsey has deep roots in Ghana, dating back to the 15th century when local communities discovered and mined gold. By the early 19th century, gold became one of the nation’s most signifi­cant exports, but colonial author­ities introduced more formalised mining practices that excluded small-scale miners from the sector. In the post-colonial era, Ghana’s mining laws, such as the Minerals and Mining Act of 1986, legalised small-scale mining under strict regulatory frameworks. However, a lack of enforcement and rampant poverty have driven many miners to operate outside the law, thus fuelling the rise of illegal mining.

In 2016, it was estimated that 1.1 million people were engaged in illegal small-scale mining activi­ties across the country, indirectly supporting about 4.4 million people, roughly 14 per cent of the population. Despite a government ban on illegal mining activities in 2017, galamsey has persisted due to lax enforcement, inadequate alter­native livelihoods, and the lucrative nature of gold mining.

The economic benefits and environmental costs

The immediate financial gains from galamsey are undeniable. In 2020, small-scale mining (legal and illegal) accounted for 36 per cent of the country’s total gold output, amounting to approximately 1.6 million ounces. Ghana, the world’s seventh-largest gold producer, exported nearly US$6.79 billion worth of gold in 2020, with the artisanal sector contributing sub­stantially to this figure.

However, the environmental cost is steep. Galamsey has led to severe deforestation and the contamina­tion of key rivers such as the Pra, Ankobra, and Birim, which are crucial to farming and drinking wa­ter for surrounding communities. According to the Water Resources Commission of Ghana in 2021, mercury and cyanide levels in these rivers exceeded permissible levels by 1000 per cent, threatening bio­diversity and public health. Ghana’s Environmental Protection Agency estimates that the country spends approximately US$400 million an­nually on restoring degraded lands and water bodies affected by illegal mining activities.

Global Comparisons: How other nations handle small-scale mining

To address the environmental and economic challenges of small-scale mining, several countries have implemented innovative policies and practices that could serve as a model for Ghana.

In Peru, one of the world’s larg­est gold producers, the government established formalisation programs for artisanal miners in 2012. The programs include providing miners with technical training, legal per­mits, and access to environmentally friendly technologies. By 2020, about 70 per cent of Peru’s small-scale miners had transitioned into the formal economy, significantly reducing the use of mercury and illegal mining operations.

Similarly, Colombia has launched initiatives that support communi­ty-led environmental reclamation projects, where former miners are employed to rehabilitate degraded mining lands. In 2017, Colombia’s program led to the reclamation of over 5,000 hectares of land, benefiting the environment and providing sustainable livelihoods for former miners.

Land Reclamation: Learning from water-logged nations

Countries that have faced the challenge of land degradation have found innovative ways to reclaim submerged or degraded lands. The Netherlands, known for its expertise in land reclamation, has successfully turned waterlogged areas into productive economic zones. For instance, the Flevoland province, reclaimed from the Zuid­erzee in the 1950s and 1960s, is now a thriving hub for agriculture, housing, and industry, contributing significantly to the Dutch econo­my.

In Singapore, the scarcity of land led to massive land recla­mation efforts that increased the nation’s size by 22 per cent since its independence in 1965. These reclaimed areas have been turned into industrial parks, residential neighborhoods, and recreational spaces, making Singapore a global example of how land-scarce na­tions can maximise their territory.

Ghana can adapt similar strate­gies by focusing on large-scale land reclamation and water purification efforts. The Ministry of Lands and Natural Resources, along with the Environmental Protection Agency, could develop a national recla­mation fund, drawing from the US$200 million earmarked annually for environmental restoration to invest in sustainable land manage­ment projects that turn galam­sey-affected areas into productive lands for agriculture, aquaculture, and eco-tourism.

Researching sustainable mining practices: The role of stakeholders

For Ghana to shift from de­structive mining to a sustainable, innovative economic model, the country’s critical stakeholders in­cluding the government, academia, miners, environmental groups, and the private sector must collabo­rate on research and development (R&D) initiatives that seek alterna­tive, less harmful mining tech­niques. Currently, the University of Mines and Technology in Tarkwa is leading research into mercury-free gold extraction techniques, such as the Borax method, which has been adopted successfully in countries like Tanzania and the Philippines.

Such initiatives could be scaled up with support from internation­al organisations like the Global Environment Facility (GEF) and the United Nations Development Programme (UNDP), which have previously provided funding and technical assistance to developing countries seeking to improve their small-scale mining practices.

BY PROF. SAMUEL LARTEY

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