Dr. Mahamudu Bawumia has proposed a new Minerals Development Bank to support Ghana's small-scale miners. This bank aims to formalise the sector and help miners transition into medium-scale operators. The Vice President believes this approach is crucial for tackling illegal mining, known as 'galamsey'.
The proposed bank will offer affordable finance and modern equipment to small-scale miners. It will also provide access to geological data and secure land tenure. This support intends to enable miners to scale up operations, create more jobs, and pay increased royalties. It also promotes environmentally responsible mining practices across the country.
This initiative fits into Ghana's broader economic strategy to maximise benefits from its natural resources. Small-scale miners now produce over 52% of Ghana’s gold, surpassing large-scale miners. This significant output feeds into programmes like the Gold for Reserves initiative, which has helped stabilise the Ghana cedi. Formalising this sector could further boost government revenue and foreign exchange earnings.
“Small-scale miners are not the problem but could be part of the solution if properly supported,” Dr. Bawumia stated. He emphasised the need to protect these miners while safeguarding the integrity of the mining sector. His proposals aim to reduce incentives for illegal mining by offering legitimate pathways into the industry.
The establishment of a Minerals Development Bank could significantly impact Ghana's mining landscape. It seeks to mitigate foreign financing of local mining projects, which often leads to gold smuggling. The bank would assess concession viability and provide funding, allowing Ghanaians to own 100% of their concessions. This move could empower local entrepreneurs and retain more wealth within the country.
Dr. Bawumia also linked the bank to wider reforms, including decentralising key regulatory bodies. He proposed moving the Minerals Commission and the Environmental Protection Agency (EPA) to all mining districts. This decentralisation aims to improve oversight and responsiveness at the local level. He also suggested establishing District Mining Committees, involving traditional leaders, to issue temporary licences. This would streamline local governance of mining activities.
Furthermore, the Geological Survey Department would increase its involvement in mapping gold deposits. Proper geological mapping would reduce trial-and-error mining, which often causes environmental damage. Other proposals include creating a plant pool and common-user gold processing facilities. These facilities would give small-scale miners access to modern equipment and processing infrastructure. This comprehensive approach seeks to transform Ghana's small-scale mining sector. It aims to make it more efficient, environmentally sound, and beneficial for local communities and the national economy.
The Vice President's plan addresses a critical barrier for small-scale miners: lack of capital. Many Ghanaian miners currently front for foreign nationals due to high capital requirements. This limits Ghanaian ownership and contributes to widespread gold smuggling. The proposed bank would collaborate with institutions like the Minerals Income Investment Fund (MIIF) and the Bank of Ghana. It would also involve the private sector to ensure its successful implementation. This strategic financial support is expected to unlock the full potential of Ghana's small-scale mining sector. It will foster sustainable growth and increase national revenue from gold production. The reforms could also lead to better working conditions and improved environmental protection in mining areas.