Tuesday, April 19, 2016

Proposed small-scale mining re-classification


Artisanal mining
Artisanal mining will be reserved for only Ghanaians and have a land size of up to 12.5 acres. The duration of the licence will be up to five-years, renewable after expiry. Artisanal mining will use mainly manual methods to mine alluvial and weathered hard rock material only. 

A monthly levy will be collected; however, there will be no corporate tax, capital allowance or import duty. A specifically tailored set of environmental and safety requirements will be developed for the sector.

Small-scale mining
Small-scale mining operations will be owned by Ghanaians only, and have a land size of up to 25.2 acres. Small-scale mining licences will be for up to five years, renewable after expiry. Both alluvial and hard rock material can be mined. 

Also, the use of heavy mining equipment and explosives will be allowed under strict supervision by officials from the Inspectorate Division of the Minerals Commission. 

Small-scale mining operations will be required to pay royalties, corporate tax and import duties at concessionary rates. Capital allowance will however be given for mining equipment imported into the country. 

Principal staff of the mine should include at least one mining engineer, one geologist and one accountant. A specifically tailored set of environmental and safety requirements will be developed for the sector.
Medium scale mining
The land size for medium-scale mining will be up to 50.4 acres.  The duration of the licence will be up to 10 years, renewable after expiry. A business plan or limited feasibility report and posting of a reclamation bond will be some of the licencing requirements. It will use heavy mining equipment to mine both alluvial and hard rock material.
Medium-scale mining operations will be allowed to use explosives; however, that can only be done under strict supervision by the Inspectorate Division of the Minerals Commission. Joint Ventures with foreigners will be permitted as long as the proportion of Ghanaian ownership is not less than 51percent. 

They will be required to pay royalties, corporate tax and import duties at concessionary rates. Capital allowance will however be given for mining equipment imported into the country. 

Their principal staff should include at least one mining engineer, one geologist, one metallurgist, one environmental engineer and one accountant. A specifically tailored set of environmental and safety requirements will be developed for the sector.

Dr. Aubynn explained that the current effort to draft joint regulations between the Environmental Protection Agency (EPA) and the Minerals Commission is a step in the right direction -- adding that this will help develop specifically tailored environmental management guidelines for the various categorisations.

He suggested that the re-categorisation of small-scale mining into ‘artisanal’ and ‘small-scale’ mining will be done after stakeholder consultations. 

However, that of medium-scale mining will require an amendment to the Minerals and Mining (Licencing) Regulations, 2012 (L.I.2176); Minerals and Mining (General) Regulations, 2012 (L.I.2173); and the Minerals and Mining (Health, Safety and Technical) Regulations, 2012 (L.I.2182).

Following activities expected to be undertaken to ensure the materialisation of the proposed framework, Dr. Aubynn mentioned that the Commission will from the 3rd week of March, 2016 embark on a country-wide stakeholder engagement to explain this new t framework as well as solicit views.

He explained that starting from the first week of April, the Commission in collaboration with other institutions, experts, and the respective District Assemblies will undertake a country-wide registration of informal/illegal miners and organise them into cooperatives. 

Each group or cooperative will have a clear structure with key responsibilities. They will be given training to conduct their activities in a safe and environmentally appropriate manner. 

Dr. Aubynn explained that the move will be targetted at addressing age-long illegal mining activities which have been destroying water-bodies and fertile farmlands in the country.

He said each group or corporation of the yet-to-be registered miners will have a clear structure with key responsibilities, adding that the miners when registered will be given training to conduct their activities in a safe and environmentally appropriate manner.

He stated that, under the model, all registered members of the various cooperative groups will be issued with personal identification cards and their activities will be monitored by mining wardens across the country.

Dr. Aubynn added that the registered cooperative groups will be provided with the necessary technical support to enable them mine profitably, efficiently and sustainably.

“The Commission will continue to earmark grounds for some geological investigations to identify suitable areas for small-scale mining,” adding that such grounds will be made available to the registered cooperative groups at a minimum fee to partly pay the cost of the geological studies.

Expatiating on the registration and tracking of excavators of miners, Dr. Aubyn affirmed that a proposal to track earth-moving equipment in mining areas has received a favourable response from the Minister of Lands and Natural Resources, Nii Osah Mills.

He also disclosed that 24 District Mining Committees (DMCs) have been inaugurated and started functioning. Nine out of the 24 DMCs have been trained in policy and legal issues, he further revealed.

Additionally, he mentioned that these District Mining Committees by law will be supporting the various district offices of the Minerals Commission in managing activities of small-scale mining in the districts.

“It is our firm conviction that with the training offered them, they will be able to complement the commission’s efforts at implementing initiatives to sanitise the small-scale mining sub-sector,” he said.

Government has always recognised small-scale mining as a major contributor to the nation’s economy, contributing over one-third of our gold production and employing over a million people.
“The Commission has been consistently evolving strategies to make this sector a vibrant one, that will continually create employment avenues for the teeming youth in communities where mining resources abound,” he remarked.

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