Ghana's economy will face severe consequences if a ban on mining is imposed - Lands minister

The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has warned of severe consequences for the country if a ban on mining is imposed.

According to him, the consequences would be catastrophic across all aspects and sectors involved in small-scale mining.

Outlining the potential negative impacts, he warned that the economy could collapse if the government heeds public calls for a ban on mining.

He explained that gold accounts for 54% of the country’s foreign exchange earnings, while small-scale mining contributes 40% of the country’s gold output.

He made this known during a media engagement in Accra on Thursday, September 12, 2024.

“As at June, gold alone accounted for 54% of our foreign exchange earnings as a country. Small-scale mining accounts for 40% of our gold output so, if you take 40% out of 100%, it means that our foreign exchange earnings will deplete by 40%,” he said.

Abu Jinapor, who is also the Member of Parliament for Damongo, added that a ban on mining would be unfair to individuals who are mining legally and responsibly, emphasizing that these individuals have committed no crime to warrant such treatment.

“There are people who are involved in responsible small-scale mining, who have invested millions of cedis and millions of dollars, who are mining responsibly, reclaiming the landscape, are contributing to national economy, employing hundreds and thousands of Ghanaian youths who have committed no crime, so, if you announce a ban tomorrow, it means that you have to look at the consequences on the national economy which obviously will be catastrophic, which will be literally rendering our country bankrupt,” he stressed.

He added “You have to look at the investments of these people, you have to look at the employments of Ghanaians. On top of it, we have gone down that road before, that we should be fighting illegal small-scale mining or take the approach of banning small-scale mining then you will still have the illegalities anyway.

"There is no guarantee that if you ban small-scale mining, the illegal small-scale miners will still not persevere or persist so, I am reluctant to give a definitive position on this matter. I think the discussion should go on but it’s not as simple as ban small-scale mining and all forms of small-scale mining.”

Trades Union Congress, some Civil Society Organisations, chiefs and some citizens have called on the government to, as a matter or of urgency, issue a ban on illegal mining as well as declare a state of emergency in all illegal mining areas.

The Dormaahene, Osagyefo Oseadeeyo Agyemang Badu II, has also given the government a one-month ultimatum to put an end to illegal mining else he will unite with other chiefs to take back their lands.

Organised Labour on September 11, threatened to go on a nationwide strike at the end of September if steps are not taken to address the worsening galamsey crisis.

MAG/AE

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