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Business News of Wednesday, 4 September 2013

Source: B&FT

Costs, bureaucracy fuel illegal mining

The high cost and cumbersome nature of acquiring permits for legal small-scale mining has pushed many people into illegal mining -- also known as “galamsey” -- across the country, says Nana Gyabeng Kyeamono II, Vice Chairman of the Bibiani Registered Small-Scale Miners Association.

Estimated processing fees of GH¢7,000 coupled with protracted delays -- which can take up to two or three years -- in securing the necessary certification for a mining concession “are too much for an average small-scale miner to bear”, hence their resorting to illegal mining in their quest to make ends meet, he said.

Income from “galamsey” surpasses many legitimate activities, luring many people, particularly the youth, into the trade as their main source of livelihood. This illegal search for precious metals has also attracted a large number of foreign nationals, notably the Chinese -- who faced a government crackdown during the past three months.

The crackdown followed the formation of a five-member inter-ministerial taskforce by President John Mahama in May this year to stem the practice.

Nana Kyeamono said one rudimentary way to discourage “galamsey” among locals is to reduce small-scale mining processing fees and simplify certification procedures.

“The Environmental Protection Agency (EPA) permit fee has since last year shot up from GH¢300 to GH¢750; the processing fee has been increased from GH¢100 to GH¢250; while the price of a processing form has also been increased to GH¢100 from GH¢10. Everything concerning the authorisation of a concession is centralised and one has to always travel to Accra for processing,” he said.

“It takes two to three years for a small-scale mining company to acquire a leasing permit for a concession. If government reduces the processing fees and decentralises certification procedures, it will entice many illegal miners to regularise their activities so as to halt the fast-growing ‘galamsey’ menace,” he stated -- emphasising that “many who are involved in illegal mining are willing to register as small-scale miners but are unable to meet the requirements”.

When asked about the impact of the recent clampdown on Chinese illegal miners, he said: “The Chinese were a necessary evil to the mining sector. They were our financiers and were hiring heavy-duty equipment like excavators and caterpillars to small-scale mining companies at reasonable fees; but on the flip-side, their mining activities were very devastating.”

He revealed that many small-scale mining companies have been grappling with capital to finance their activities since the Chinese were chased out, and appealed to government to support them. “If government will provide us with loan facilities or facilitate bank loans, we are capable of paying back,” he said.