Formalise small-scale mining sector with Mining Development Fund - Group tells government

The Fanteakwa South Association of Small-Scale Miners is advocating for the formalisation of the small-scale mining sector by establishing a Small-Scale Mining Development Fund.

They believe that this initiative would enhance the industry's operations and make a significant contribution to the socio-economic development of the country.

Speaking to the media in Osino during Dr. Mahamudu Bawumia's campaign tour in the Fanteakwa South Constituency, the group's spokesperson, Paul Okran, highlighted that banks are hesitant to finance small-scale miners due to their informal status, which hampers the sector's growth.

Okran suggested that with government assistance, small-scale miners could invest in modern mining machinery under strict government oversight, including the use of tracking devices to ensure compliance.

He emphasized that formalizing the sector would create employment opportunities, increase tax revenue, and enable the collection of SSNIT contributions for miners' pensions. Furthermore, formalisation would facilitate the restoration of mined lands, promoting environmental sustainability.

Okran underscored the significant role that small-scale mining, often misconstrued as illegal mining, plays in Ghana's economy, contributing 40% to the country's Gross Domestic Product (GDP).

He also urged the government to streamline the process of obtaining mining licenses.

Okran noted that "the current complex and lengthy procedure discourages individuals interested in operating legally, leading them towards illegal mining activities."

Additionally, Okran welcomed Vice President Dr. Mahamudu Bawumia's suggestion to involve the Ghana Geological Survey Department in identifying gold deposits, which he believes would mitigate the environmental harm caused by unregulated mining and foster sustainable economic growth.

These statements were made following Vice President Dr. Bawumia's promise to establish a Minerals Development Bank for small-scale miners during his visit to the Fanteakwa South Constituency on August 22, 2024, as part of his Eastern Regional campaign tour ahead of the general elections.

NAY/MA