Mining of minerals resources in Ghana started before the arrival of the Portuguese in 1471. So, the abundance of gold and the extraction and trading of gold in the open, during their arrival that they named the Coastal Areas as Gold Coast. They also gave the name Elmina, the Mine to the town or the area in the Central Region which still bears the same name as at date.
The mining by the locals from the colonial era up to date was mainly artisanal mining, same as small scale mining and termed as Galamsey (gather and sell) in the local parlance with the employment of simple tools and no or low substantial amount.
Initial considerable commercial mining of precious minerals in Ghana, was done by the State between 1957 and 1988 with the establishment and operations of the then State Gold Mining Corporation with Sub-Mining Companies at Tarkwa, Prestea and Dunkwa on Offin as well as privately by foreigners in the then Ashanti Gold Company, Obuasi etc.
The Economic Recovery Program cum the Structural Adjustment Program launched by the PNDC in the 80s, saw the promulgation of the Minerals and Mining Law 1986 (PNDCL153) and the establishment and operations of Minerals Commission in 1986 to attract Foreign Direct Investment into the Mining Sector. This was followed by the Small-Scale Gold Mining Law 1989 (PNDCL218) to regulate the then Small-Scale Mining activities mainly Galamsey by reserving the Small-Scale Mining activities for only Ghanaians not less than 18 years.
The Small-Scale Gold Mining Law 1989 (PNDCL218) was then known as the Galamsey Law, in the process for the legalization and formalisation of the Small-Scale Mining, in a bid for a win-win solution by the World Bank and the PNDC to contain or control the then artisanal mining activities. The philosophy then was ‘’if you cannot beat a large number of people in millions openly doing an economic activity for survival, then find a way to contain them’’ as then propounded by the late Papa J, this was a very important philosophy by the late Papa J.
This philosophy by the late Papa J was applied by him to promulgate a District lottery Law in 1991 or so to deal with the then proliferation of the banker-to-banker lotto operators nationwide. But this Law was repealed as soon as ex-President Kufuor took over power from the Late Papa J. But the situation persisted even worsened with the State, losing a lot of money as well use it as a medium for creating huge employment with payment of PAYE, etc due to the repeal of the Banker-to-Banker Lotto Law.
It must be put on record that the Director General of NLA in the first regime of President Nana Addo adopted the fine philosophy of the late Papa J with some modifications. Hence, a good Leader must understand the need for attaining a common ground or win-win solution in a very thorny national issues to ensure the stability of the State.
The Precious Minerals Marketing Company was also established by the PNDC with the passage of the Precious Minerals Marketing Company 1989 (PNDCL219) for the development of Small-Scale Mining, for the purchase and export of minerals such as gold and diamond from the Small-Scale Miners.
As results of erratic production cum the low price of gold and other challenges and the Structural Adjustment Program by the PNDC, the sub-Mining Companies of the State Gold Mining Corporation became defunct and were sold out to foreign Companies between 1990 and 1998.
To ensure the Natural Resources (both biotic and abiotic) especially the abiotic resources like minerals are effectively harnessed for the prosperity of the State and wellbeing of the Citizenry, the proponents of the 1992 Constitution vested all minerals in the President of Ghana, on behalf of and in trust for the people of Ghana.
Also, to ensure the President or the Executive branch of government does the right thing at all times for the real interest of the Nation or the Citizenry, the people of Ghana in April 1992 by Article 268 (1) of the 1992 Constitution demanded the ratification of Parliament of mining concession or minerals rights granted by the President of Ghana. This is part of the peoples’ interest for a very responsible Parliament.
That is to ensure Parliament live up to its expectation of effective oversight responsibilities over the activities of the Executive Arm of Government, as part of the checks and balances of power to arrest abuse of power or corrupt acts by the Presidency and his subordinates (the Executive Arm of Government), in line with the doctrine of separation of powers.
In 2006, all previous laws on Minerals and Mining were amalgamated into Minerals and Mining Laws 2016 (Act 703), with later amendments, notably Amendment Minerals and Mining Act 2015 (Act 900), this amended mainly section 25 of Act 703 to rectify matters on Royalties and also it amended section 99 of Act 703 on offences and penalties (punishments) and also the Minerals and Mining Act 2019 (Act 995) which further deals on offences and penalties (punishments).
The Poor show by both the Executive and Legislature Arms of Government in the Mining Sector
Unfortunately, since 1992, both the Executive (the Presidency) and the Legislative Arms of Government, or Parliament woefully failed to act effectively as required in both Article 257 (6) and Article 268 (1) of the 1992 Constitution respectively and also strictly adhere to the preamble of Transparency, Probity and Accountability as enshrined in the 1992 Constitution, in order to ensure the continuous prosperity of the nation and the wellbeing of the people through both responsible mining and sustainability in mining for the irrevocable (lasting) generation of adequate or maximize revenue in hard (foreign) currency especially US Dollars or the Euro or the British Pound Sterling or Swiss Franc etc.
So, to avoid excessive taxing of the citizenry including the intended accessing of the electronic wallets of MOMO Accounts holders as in the poorly or badly handled or crafted Electronic Levy (E-levy) and thus making it a seemingly daily light robbery of the Citizenry by the State. The below five examples of misdeeds by some of the State Officials and their cohorts (especially some Small-Scale Miners) in the Mining Sector are cited to drive my point home.
Firstly, the poorly crafting of the Minerals and Mining Laws especially the Small Scale Mining Law in 2006 when the Minerals and Mining Laws 1986 (PNDCL153), Minerals Commission law 1986, the Small Scale Gold Mining Law 1989 (PNDC218), the Precious Minerals Marketing Company Law 1989 (PNDC219) etc which were promulgated by the PNDC, as well as the laws on mining passed in the in the NDC1 and NDC2 regimes of ex-President JJ Rawlings were amalgamated into the Minerals and Mining Laws 2016 (Act 703) in 2006 during the second presidency of ex-President JA Kufuor.
I say it was poorly crafted due to the lack of clarity or the poor definition of Small-Scale Mining Law in Act 703 of 2006. Unlike, the excellent definition or interpretation made in Section 77 of the Minerals and Mining Law 1986 (PNDCL153) or in the Small-Scale Gold Mining Law 1989 (PNDCL218), the Small-Scale Mining Law as in the Minerals and Mining Laws 2016 (Act 703) is very ambiguous or problematic, and with some errors I especially the punishments or the offenses in section 99 of the Minerals and Mining Laws 2016 (Act 703).
Act 703 because the drafters of the law woefully failed to factor in the likely scheming or shady dealings or attitudes of some Ghanaian business men and women as frontmen and front women for foreigners in businesses exclusively reserved for Ghanaians above 18 years.
So, after sending over 300 Ghanaians to China by the then NPP regime of ex-President JA Kufour to learn about mining activities in China, in an attempt to get Ghanaians in the commanding heights of businesses including the Mining Sector, the administration of the Gentle Giant should have conducted effective risk assessments which would made them to consider the likelihood of collaborations of the yet to be Ghanaian Small-Scale Miners and their Cohorts in or from China.
This blunder was and is still the nation’s woes or the associated risks of irresponsible mining including the risks of massive environmental degradation, massive corruption or looting syndicates in the Small-Scale Mining Sector, suffered within a very short time by Ghana or since 2007. Note between 2007 and 2015 a lot of Chinese with numerous Excavators, Trommels, Chafan machines etc invaded the Small-Scale Mining Sector in a shady business dealing with their Ghanaian Associates whilst the State Officials looked unconcern. More of this in my book to be published later.
Secondly, in 2013, the Daily News published in www.hurriyetdailynews.com dated 08 January 2013 of a mystery on jet (A300 Cargo plane) with 1.5tons of gold worth US$65million from Ghana to Dubai which was held at Istanbul’s Ataturk Airport due to underhand dealings or was it missing documents at the Airport.
Thirdly, Myjoyonline published in www.myjonline.com on 26 January 2022, a story with the tile Ghana loses US$2Billion in taxes due to undervaluation of gold exports, reportedly as findings in research by the Institute for Statistical, Social and Economic Research (ISSER) which was conducted within the era 2011 and 2017. Also, in 2018 or so our indefatigable Head of State, His Excellency President Nana Addo-Danquah (the Show Boy) indicated that about US$5billion of gold export from Ghana to United Arab Emirates was unaccounted in 2016 or so.
Fourthly, Ghana Export Promotion Authority (GEPA) in www.gepaghana.orrg dated 18 January 2018 indicated that the Precious Minerals Marketing Company could not trace most of the Small-Scale Mining Companies involved in the export of 2 billion worth of gold in 2016.
Fifthly, as per Article 257 (6) of the 1992 Constitution, the minerals in Ghana are vested in the President in trust for the people hence belong to the State implying that one requires a permit or license from the President of Ghana to hold or trade or transact business in gold otherwise gold obtained by both the Large-Scale Mining Companies and the Small-Scale Miners must be properly accounted for and sold outright per relevant laws.
In the case of Small-Scale Miners, the gold obtained must be sold outright to the Precious Minerals Marketing Company or through the assigns (Gold buying agents) of PMMC but unfortunately this was not so, as an evidential material in 2019 or so revealed. That was when a TV Station telecasted someone with over five bars of bullion estimated at about 5kg per bar or more than 25kg in total weight.
This could not have happened in the Democratic Republic of Congo especially during the era of the late President Laurent- Desire Kabila (who born dog) or the late President John Magufuli (the bulldozer) of Tanzania.
Lastly, were the unfortunate judicial actions which resulted in the revoking of Mr Ibrahim Mahama’s mining lease or license of Bauxite Concession at Nyinahini Forest area, in the Ashanti Region by the Supreme Court of Ghana on 31 July 2019. This was due to no Parliamentary approval as required in Article 268 (1) of the 1992 Constitution, a demo of a very poor work by the sixth Parliament of Ghana or the Presidency of JDM but an excellent demo of separation of powers or work by the Judicial Arm of Government especially the Supreme Court of Ghana.
The poor show by the State in the Mining Sector, especially the poor oversight responsibilities of the Members of Parliament of Ghana in the previous Presidencies, have led to the seemingly errors and or corrupt practices by some elements in the Executive Branch, especially the personnel of the Ministry of Lands and Natural Resources and their cohorts in the Small Scale Mining Sector to the disadvantage of the citizenry, despite the abundance natural resources in Ghana, which God gave to the people towards poverty reduction or as a remedy to save them from their woes of poverty and prevent a possible overburden taxes including the proposed poorly handled or crafted e-electronic levy by the State.
So, the poor show by the State in the Mining Sector has made some of the proponents against the implementation of the poorly handled or package electronic levy (e-levy) by the Government and in their recommendation for the needed revenue they ended by accusing the Large Scale Mining Companies or Mining Companies under the auspices of the Ghana Chamber of Mines of underhand dealings especially in Gold Accounting to the State, including undervaluation and therefore called on the State to study the Mining Sector, which involves both the Large Scale Mining Companies and the Small Scale Miners for more revenue instead of the intended accessing of the electronic wallets of the citizenry (or Bank Accounts of the patrons of the MOMO system for money (regarded as a daylight robbery) in the name of taxing the citizenry for national development. This is so due to the good work of Vice President Dr Bawumia in his digitization and digitalization agenda which revealed bullions of transactions on the MOMO platforms.
Current laws governing the mining sector are as follows;
Constitutional stipulations – Article 257 (6) of the 1992 vested all minerals in the President of Ghana, on behalf of and in trust for the people of Ghana and Article 268 (1) of the 1992 Constitution requires any transaction, contract or undertaking involving the grant of a right or concession by or on behalf of any person including the Government of Ghana to any other person or body of persons howsoever described for the exploitation/miming of any mineral or other natural resources of Ghana requires the ratification of Parliament.
Legislations – The Minerals and Mining Act 2006 (Act 703) with subsequent Amendments, including Amendment Minerals and Mining Act 2015 (Act 900) this amended mainly section 25 of Act 703 to rectify matters on Royalties and also it amended section 99 of Act 703 on offences and penalties (punishments) and also the Minerals and Mining Act 2019 (Act 995) which also further deal on offences and penalties (punishments).
Other Laws on Mining activities
(a) The Environmental Protection Act 1994 (490) and related legislations on the protection of the Environment, (b) Forestry Commission Act 1999 (Act 571) – for granting or denying permits for entry into forest areas for mining activities. (c)Water Resources Commission Act 1996 (Act 562) related to use of water and protection of rivers and water bodies, (d) Geological Survey Authority Act 2016 (Act928) – survey of minerals content, (Lands Act 2020 (Act1036)
Relevant Regulations- The relevant regulations are as follows
(a). Minerals and Mining (General) Regulation 2012 (LI2173), (b). Minerals and Mining (Support Services) Regulation, 2012 (LI2174), (c). Minerals and Mining (Compensation and Resettlement) Regulation, 2012 (LI2175), (d). Minerals and Mining (Licenses) Regulation, 2012 (LI2176). (e) Minerals and Mining (Explosives) Regulation, 2012 (LI2177), (f). Minerals and Mining Operations (Tracking of Moving and Mining Equipment) Regulation, 2018 (LI2404), (g) Minerals and Mining (Ground Rent) Regulation, 2018 (LI2257), (h) Minerals and Mining (Local Content and Local participation) Regulation, 2020 (LI2431)
Laws on Administrative issues also affecting mining companies
(a). Registration of Company by the Companies Act 2019, (Act 992), (b) Ghana Investment Promotion Centre Act 2013 (Act 865). (c) Income TAX Act 2015 (Act 896), (d) the Labour Act 2003 (Act651)
(e) Workman Compensation Act 1987 (PNDCL187)
Institutions and regulators governing mining in Ghana-The three organs of Government namely;
(a). Parliament – Passages of related Legislations and oversight over the activities of the related Ministries. (b). Judiciary- adjudication of relevant cases. (c). The Executive – the Presidency and related State Ministries namely; (1). Ministry of Finance and Bank of Ghana, (2) Ministry of Energy and related Agencies like VRA, BUI Power Authority, GRIDCO and ECG, (3) Ministry of Environment and the related Regulator namely the Environmental Protection Agency (EPA) dealing with Environmental matters on the field, through supporting Miners in the preparation and submission of Social and Environmental Impact Assessments (SEIA) and their engagement with the affected Stakeholders for the Social licenses, (4) The Ministry of Lands and Natural Resources on Policies in general affecting Mining with the subunits as Regulators in Mining namely (i)The Minerals Commission, – for regulating and the management on the usage of mineral resources and coordinating the affected policies, (ii) Forestry Commission –granting of permits to legal operators into forest areas rich with Minerals, hence the Forestry Commission is to work conjunction with the EPA to ensure responsible mining in areas ceded for Mining, (iii). Water Commission – Usage of Water in Mining, (iv) Land Commission – Usage of Land.
My take or perspective
I know what pertains in the Small-Scale Mining Sector and the problems or the inability of Precious Minerals Marketing Company to live up to expectation. So, I can authoritatively state clearly /irrevocably that the Mining Companies under the auspices of the Ghana Chamber of Mines have been applying the principles of Transparency, Probity and Accountability as enshrined in the 1992 Constitution in their Mining activities, especially the accounting and sale of gold and therefore could not be involved in the reported misdeeds as found in the research work by ISSER, involving the loss of billion dollars in taxes due to undervaluation of gold exports as in reported in www.myjonline.com dated 26 January 2022 as well as the smuggling or poor accounting of gold in the Mining Sector. Hence, the misdeeds in gold accounting, pertains in the Small-Scale Mining Sector, found to be full of illegal activities (encroachment of mineral areas, corruptions or looting syndicates, smuggling of gold and other vices).
During my tour of duty, as then the Security Superintendent in Bogoso Gold Mine before 2015, I was directly or physically involved from the protection of gold ore at the Mining Pits, enroute to the Process Plant as well as directly involved in the Smelting/Refining of Bullion and the monitoring of the assaying (laboratory analysis) of bullion samples for the purity of gold or gold content and the impurities of mainly copper content in the bullion to ensure the strict accounting to GRA, Bank of Ghana and the buyer, correct payments for the gold and any copper impurities by Rand Refinery in South Africa in the case of the Bogoso Mine and due to our very good security work at Bogoso Mine, the payment for the bullions were done upfront on receipt of the signed electronic copies of the documentation using the prevailing rate, whilst expecting the arrival of the boxes of bullion with the signed hard copy, which were with Company or in transit.
Likewise, we ensure the effective securing of the boxes of the bullion with both seals from GRA and the Company and placement of the sealed boxes of bullion in a Strong Safe with double locking systems, with codes and keys kept by two different Managers (the Head of Security and the Process Plant Manager) that was when the boxes of the bullion were with the Company.
We also monitor the shipment of the boxes of the bullion until they get to Rand Refinery in South Africa and we ensure to collect the feedback from Refinery in South Africa after they have conducted an independent Assay on each bullion in South Africa to authenticate our details and the results were normally the same as recorded by Bogoso Mine. Hence, Large Scale Mining Companies do apply the tenets of probity, transparency and Accountability in their activities. I have written booklets in Mining Security especially Metallurgical Security Codes for the guidance of the operations of the Bogoso Mine and I am fully aware that the other Large Scale Mining Companies as members of the Ghana Chamber of Mines also have effective Security Policies to ensure efficient accounting of gold produced by them.
Commercial Mining involves vey huge capital investments, so, since 2015, I have been advocating for positive actions in the Mining Sector including a proposal for a Medium Scale Mining Sector to cure the attitude of Ghanaians acting as front men and frontwomen for Foreigners, as a measure to ensure responsible mining by Ghanaian tycoons in partnership with their permissible foreign collaborators as well as in the maximization of revenue as in my Recommendations below.
Recommendations
- The Citizenry with the support of relevant Civil Society Organizations and or their members of Parliament, must make it very clear to a President of Ghana (currently, President Nana Addo-Danquah,), that Article 257 of the 1992 Constitution which puts the Minerals in trust in President of Ghana for the people of Ghana, requires him or her to ensure responsible Mining, proper accounting of the minerals, especially gold, diamond, salt, limestone etc and above all he or she must ensure the minerals especially gold produced by the Small Scale Miners are sold outright as done by the Large Scale Mining Companies as per laid down procedures and in the case of the Small Scale Mining Sector, the gold must be sold outright to PMMC or through her legal agents without hoarding or keeping even an Oz of gold without authorization from the State or from PMMC especially gold sold for local beautification or jewelry firms or makers.
2. Based on the attitude of Ghanaians of fronting for foreigners, I recommend the permitting of Ghanaians to partner with a limited number of registered foreigners with spelt out capital or a legal threshold of foreign cash especially in dollars by the Foreigner to form a Joint Company and operate in a proposed third nomenclature in the Mining Sector as Medium Scale Mining or as Junior Mining Companies.
This will also take care of some Mining Companies found by me as Junior Mining Companies, like Prestea Sankofa Gold in Prestea, Shaanxi Mining Company in Talensi area, TWN Mine in Obuasi, Akonta Mining Company.
Akobeng Mining Company in Nzima and beyond Prestea area as well as other mechanized mining companies or local miners operating with sophisticated technology like Excavators, Trommels etc with substantial amount and or with or without explosives.
The Medium Scale Mining policy or law should require the employment of locals (Ghanaians) as Mining Officers or Managers, Health/Safety Officers, Environmental Officers, nurse etc.
3. The proposed Medium Scale Mining should be governed by a Standard Operation Procedures (SOPs) especially on acquisition of social license through the conduct of effective Social and Environmental Impact Assessment and remedies etc, on the effective security and proper accounting of gold and the outright sale of gold to PMMC for export etc. Details on the policy and virtually a law on Medium Scale Mining to be proclaimed later.
4. Proposed Medium Scale Mining or Junior Mining Companies to form a Chamber or allowed to join the Ghana Chamber of Mines.
5. I recommend collaboration between Small Scale Miners (Community or Cooperative Mining operators) and the proposed Medium Scale Mining Sector including the purchase of treatable spent ore or tailings. If possible, the collaboration of Medium Scale Miners and Large-Scale Mining Companies for the purchase of treatable spent ore or tailings not needed by them. This may be treated by a Biox Plant by Bioxidation process with cultured bacteria.
6. I recommend the rights in mining or the mining lease for Medium Scale Mining should be initially granted for 20years and renewed for a further period of not more than 10 years before the expiring date. 5% of total income from minerals as Royalty payable to the State.
7. I recommend payment of VAT, COVID-19 levy, GETFUND Levy, reasonable corporate tax, Withholding Tax, SSNIT, PAYE of all personnel (locals and foreigners or expatriates) by the proposed Medium Scale Mining Companies.
8. Precious Minerals Marketing Company should be converted into a very responsible Minerals Board or Authority like COCOBOD for dealing with matters in the Small-Scale Mining Sector (Community Mining) including the development of the sector through extension services by field officers, financial or logistic support of the gold etc, back filling of spent mining pits of the Small-Scale Miners or supervise the Small Scale Miners to do so.
9. I also recommended that the proposed Minerals Board or Authority in addition to her responsibilities in the transactions of business in Precious Minerals (gold, diamond etc), it should be responsible for the purchase and export of Industrial Minerals like Salt as well have interest in the commercial transaction of other industrial minerals like Limestone, Clay, Sand etc in a proposed Medium Scale Mining Sector.
It is expected that by this action. the State especially the Minister for Lands and Natural Resources would able to reduce the associated risks (environmental degradations, safety/health hazards, corruptions or looting syndicates, smuggling and other vices) in the Small Scale Mining Sector as thus make the President of Ghana more responsible in the holding of the minerals in Ghana on behalf of and in trust for the people of Ghana as stipulated in Section 6 of Article 257 of the 1992 Constitution and may help reduce the insecurity likely to be associated with MOMO e-levy politics.
10. The Minerals Board to help the Small-Scale Miners and may be the Medium Scale Miners to invest in other areas of the economy especially farming in avocado, cash crops like Cocoa or cashew nuts or fishing or poultry production, beekeeping etc or Alternative Livelihood Projects as part of sustainability of mining efforts
