The Chairman of the Ghana National Association of Small Scale Miners (GNASSM) for the Abirem-Zone, Mr. Solomon Kwame Otu , has raised concerns over the government’s proposed introduction of a medium-scale mining category into the country’s mining regime.
In a press statement released on September 23, Mr. Otu said while the intention to introduce the medium-scale category may be good, there is fear that it could be used to push indigenous small-scale miners out of business.
According to him, the Minerals Commission and the Ministry of Lands and Natural Resources are considering the creation of a medium-scale category between small-scale and large-scale mining to bridge the gap and attract more investment into the mining sector.
He, however, warned that without proper consultations and clear policy guidelines, the proposal could lead to elite capture and displacement of genuine small-scale miners.
“Our concern is that the medium-scale category, if not properly defined, will allow foreign investors with huge capital to take over concessions currently held by small-scale miners. Small-scale mining is by law reserved for Ghanaians, and that protection must not be taken away under the guise of medium-scale,” he said.
Mr. Otu explained that most Ghanaian small-scale miners lack the financial muscle to compete with foreigners, and introducing a new category that allows 50% to 100% foreign ownership could worsen the already existing foreign infiltration problem.
He therefore called on government to engage GNASSM and other stakeholders extensively before finalizing the policy.
He proposed that if the medium-scale category must be introduced, it should be reserved for Ghanaians or have a minimum 70% Ghanaian ownership, with strict capital and concession size thresholds to protect small-scale operators.
“We are not against reforms, but any reform must protect the Ghanaian miner. Government must provide us with geological data, access to finance and equipment, instead of creating a new category that will favour foreigners,” he added.
He appealed to the Ministry to suspend the process until all concerns of small-scale miners are addressed.
Among GNASSMs concerns are:
– Violates the spirit of Act 703 – small scale was meant to indigenize mining wealth.
– It will rebrand galamsey. Illegal foreign operators will simply register as “Medium Scale” without remediating past environmental crimes.
– It threatens 1.2 million Ghanaians who depend on small scale mining.
– It risks repeating the large-scale sector where Ghanaian ownership is below 10%.
GNASSM also proposes the Ghanaian Model:
– Reserve Medium Scale for Ghanaians: Concession 50-150 acres, capital GHC 5M-20M, mandatory reclamation bond, 15% local employment quota. Graduated from licensed small scale miners with 3+ years track record.
– Empower, Don’t Replace: Implement Minerals Development Banks to provide affordable finance, geological data, and equipment leasing to Ghanaian miners, not foreign capital.
Enforce Law Without Fear
– Audit all small scale licenses for beneficial ownership
– Seize and auction equipment of illegal foreign operators
– 10-year revocation for Ghanaians who front for foreigners
Protect Forest and Water:
– No mining within 100m of river bodies or inside forest reserves
– Concurrent reclamation – mine 1 acre, reclaim 1 acre
– Gold Traceability: All small scale gold must pass through licensed Ghanaian aggregators with XRF verification before GoldBod export to block smuggling.
GNASSM, with legitimate licensed small scale miners of Oda (120 miners network) and across the country , have proven with goldbod that Ghanaians can mine responsibly, pay taxes, and employ Ghanaians.
