One of the reasons cited by the government for not imposing a total ban on small-scale mining is the significant economic impact on the sector. Small-scale mining, when done legally, contributes to government revenue through taxes and royalties. However, illegal operators, who make up a large portion of the sector, evade these payments.
However, a tax expert, Francis Timore Boi has pointed out the importance of focusing on illegal miners who do not contribute to the economy.
“By default, illegal operators or illegal miners do not pay taxes,” he noted. Under Ghana’s mining law, licensed operators are required to pay a 5% royalty on gross production, along with other taxes, including a 35% mineral income tax.
Unfortunately, these illegal operators bypass such obligations. Timore Boi emphasized that the government’s current tax collection from the mining sector is far from adequate.
“In 2023, the mineral royalty that we have collected, including all the big mining operations, is less than 3,000,000,000 Ghana cedis.”
Francis Timore Boi, Tax Expert
This shortfall is exacerbated by the inability to collect withholding taxes from small-scale miners, which should be set at 1.5% when they sell their produce.
According to Timore Boi, the Ghana Revenue Authority (GRA) has no available data on the collection of this tax, further highlighting the challenges the government faces in regulating the sector.
Economic Impact of Small-Scale Mining
Meanwhile, the ongoing debate about mining in Ghana, particularly illegal small-scale mining or “galamsey,” has sparked calls for a general ban on the practice.
However, government officials and experts have highlighted the complexities surrounding this issue, advocating for a more practical solution.
One of the most prominent voices opposing the outright ban is Hon. George Mireku Duker Deputy Lands and Natural Resources Minister who insists that simply banning mining is not the right way to go about it.
“I am personally against the call for the ban on mining generally. You can’t ban mining. What would that solve?”
Hon. George Mireku Duker Deputy Lands and Natural Resources Minister
Hon. Duker emphasized that the focus should be on addressing the underlying challenges instead of resorting to blanket prohibitions. Banning mining would have far-reaching consequences, particularly on the economy, without necessarily resolving the root of the illegal mining problem.
Hon. Duker further argued, “In 2018, when we banned mining, we produced more gold from the small-scale mining sector than any other year. So it means banning mining is not the solution.”
According to Hon. Duker the government’s approach to resolving the galamsey menace includes deploying “river guards on galamsey sites.
These guards, who are set to be equipped with body cameras to ensure transparency and accountability, represent a significant step forward in tackling the environmental degradation caused by illegal mining.
“Currently, we’ve trained not less than 300 people. The naval command took that responsibility and trained those youth. So very soon, we will deploy them to protect the river bodies.”
Hon. George Mireku Duker Deputy Lands and Natural Resources Minister
Hon. Duker stressed the importance of having a dedicated group of people permanently safeguarding the rivers, similar to how forest guards protect Ghana’s forests. He pointed out; “As we have the forest guards, let’s also have the river guards.”
The inclusion of body cameras for these guards aims to increase accountability.
“We’re going to procure them with body cams. So as they walk, they work. [So that] we know at any point in time what they are doing.”
Hon. George Mireku Duker Deputy Lands and Natural Resources Minister
The Chinese Involvement in Galamsey
Meanwhile, Chinese nationals have been implicated in illegal mining activities in Ghana. The devastation of water bodies and forest reserves due to illegal mining, often facilitated by foreign nationals, particularly the Chinese, has become a pressing concern.
Amidst this crisis, the Chinese government has publicly denounced the involvement of its citizens in illegal mining in Ghana.
Chinese Ambassador Tong Defa, in an interaction with journalists, reiterated; “We always request Chinese citizens here to do things legally, to do things according to the law and local regulations.”
The ambassador admitted that while some Chinese nationals have been involved in illegal mining activities, the Chinese government does not condone such behaviour.
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