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Business News of Thursday, 14 May 2009

Source: GNA

Government designates 66 mining areas for ASMs to operate

Elmina, May 14, GNA - The government has identified and designated 66 areas throughout the country to be licensed out to Artisanal Small Scale Mining operators (ASMs), as soon as geological investigations into its viability was completed.

The Minister of Lands and Natural Resources, Alhaji Collins Dauda who announced this when he opened a three day international workshop on ASMs and mining companies at Elmina on Wednesday noted that inadequate viable areas for the sub-sector among others lead to haphazard mining with its attendant degradation and pollution of the environment and encroachment on concessions of large scale mines.

The workshop on the theme: "Mineral Led Sustainable Development: Effectively Harnessing the benefits of artisanal and Small Scale Mining In Africa" is being attended by Members of Parliament, chief executive officers, traditional rulers, members of the mining companies, non-governmental organizations and representatives of some of the affected communities of mining activities.

It was therefore imperative that the government supports that sector to facilitate improvement in their operations in order for the former to monitor and ensure that sanity was brought to the activities of the ASM sub-sector to change the negative perception of the public about them.

He underscored the importance of the contributions of the ASMs to the significant growth of the nation's economy, adding that it was towards that direction that the government has disbursed a total amount of 700,000 Ghana cedis to the Konongo, Bolgatanga and Bibiani mining cooperatives to purchase mining and processing equipment to boost their operations.

According to him, the ASM sub-sector last year, contributed about 15 percent of the total gold produced and 100 percent of diamonds production, adding that about one million people are directly involved in that sector while the same figure also benefit from its activities.

Alhaji Dauda stressed that the government will not compromise its concerns for the environment, consequently, the Environmental Protection Agency (EPA) and the Minerals Commission were co-managing the activities of the ASMs to sustain the environment. He said under the government and the European Union (EU) sponsored Mining Sector Support Program (MSSP), the University of Mines and Technology (UMaT) has developed an alternative technology that does not involve the use of mercury to extract gold. Alhaji Dauda expressed his pleasure that the ASM operators have embraced the new approach and hoped it will be replicated in areas where mercury pollution had generated a lot of conflicts among residents and the operators.

He advised all ASMs to return part of their proceeds to the host communities as a way of corporate social responsibility to develop those areas. He urged the participants to deliberate on the issues and find practicable and sustainable solutions to the myriad of challenges facing the sector. Ms Joyce Aryee, Chief Executive Officer of the Ghana Chamber of Mines said even though the sub-sector economically supports about five percent of the population, its operations must be carried out under safe and regularized environment.

She reassured Ghanaians that government would continue to officer assistance to the sector to shape its activities to acceptable standards.

Dr Toni Aubynn of Goldfields and Chair of the International Council on Minerals and Metals (ICMM) said ASM which is the oldest form of mining was still gaining grounds worldwide in about 70 countries with 100 million people depending directly or indirectly on it for their livelihood.

He noted that mineral resources wealth could serve as an engine of growth and help reduce poverty when well harnessed and called for the workshop to come out with solutions while stakeholders take the appropriate action to help minimize the problems facing the sector.