ENVIRONMENTAL IMPACT AND LAND DISPUTE OF ILLEGAL SMALL-SCALE

GOLD MINING IN GHANA

By Afful Fosu, Aja Jawneh and Lilia Maximova

Willy Brandt School of Public Policy University of Erfurt Germany

1
Abstract.
Environmental degradation resulting from mining activities is mostly attributed to
illegal small-scale mining. As small-scale illegal gold mining in Ghana customarily involved
the use of basic tools such as pickaxes, shovels, spades, chisels, and hammers by unskilled
personnel with little or no education to excavate gold or gold-bearing rocks from the earth, it
accounts for significant land degradation and deforestation, not to mention overall
environmental pollution and water contamination. However, it has a positive effect on
community development. In addition, local artisans were instrumental in the discovery of
several of the large-scale mines and contributed to the overall increase in gold output by
exploiting what might otherwise be considered an uneconomic resource.

This paper will look at the history of small-scale gold mining in Ghana, including the
evolution of the regulatory framework of mining activities.

2
Table of contents
Abstract.................................................................................................................................................2
Introduction...........................................................................................................................................4
Problem Statement................................................................................................................................5
Description of the Natural Resource: Gold............................................................................................6
Research Questions...............................................................................................................................6
Terminology..........................................................................................................................................7
Brief history of small-scale illegal gold mining in Ghana.....................................................................9
Advantages of small-scale illegal gold mining in Ghana.....................................................................11
Environmental impact of illegal small-scale gold mining in Ghana....................................................12
Land use and illegal small-scale mining in Ghana...............................................................................15
Policies to regulate the sector..............................................................................................................18
Recommendations...............................................................................................................................19
Conclusion...........................................................................................................................................21
Appendix A.........................................................................................................................................24
Bibliography........................................................................................................................................27

3
Introduction
Ghana is Africa’s second-biggest producer of gold and world’s ninth producer.
(Minerals and Mining Policy of Ghana, 2014). Mining sector is the largest tax-paying sector
in the country, it attracts more than half of all foreign direct investment (FDI) and generates
one-third of all export revenues. It also has a positive effect on the growth of the non-mineral
economy and national development (Mining in Ghana, 2015
Although the gold mining sector is largely foreign owned, because of the large foreign
direct investment that the sector attracts, it employs only 1,5 per cent of expatriates and
creates numerous employment opportunities for Ghanaians (see Appendix A for employment
by mining activity). The sector directly employs an estimated one million people and
supports approximately 4.5 million (McQuilken & Hilson, 2016, p. 6). ). However, the
situation where government is continuously looking for strategies to increase foreign
investment in the mining sector, creates conditions for displacement of a great number of
local small-scale miners, for whom mining is one of a few employment and livelihood
opportunities.
As government historically, since colonial period, prioritises large-scale mining, it is
lenient in reinforcement of regulation of the small-scale mining sector to facilitate
formalisation of operations in the sector and to create conditions for legal interaction between
large-scale and small-scale mining actors. This is one of the reasons of marginalisation of
small-scale mining activities and disempowerment of illegal small-scale miners for whom
obtaining a license is a quasi-insurmountable task.
The Small-scale gold mining sector has a positive socio-economic effect that should not be
ignored: it was successful in tackling rural-urban migration issue, seen in other countries of
Africa, and boosting community development in mining areas. The sector creates direct and
indirect employment opportunities, for instance, for food and drink sellers, clothing sellers,
boutiques, hardware stores, etc. In addition, i) local artisans were instrumental in the
discovery of several of the large-scale mines, ii) small-scale operations exploit what might
otherwise be considered an uneconomic resource, and thus contribute to the overall increase
in gold output. For example, in 2012 small-scale miners contributed some 34% (1,423,453
ounces) of the total gold produced in the country in 2012 - a year of record production
(Minerals and Mining Policy of Ghana, 2014). Small-scale mining is also less sensitive to the
change in gold prices, thus remaining operational when global prices drop. It is also
important to mention that returns from mining are often invested in farming (McQuilken &
Hilson, 2016).

4
However effective management of unregulated small-scale mining is critical as the sector
accounts for the most adverse environmental impacts of mining. This is the reason why
small-scale mining is negatively presented in Ghanaian media (McQuilken & Hilson, 2016).
The majority of people employed in small-scale mining are poverty-driven. Thus,
getting access to formal finance and equipment to acquire land and meet the requirements of
obtaining a licence and environmental permit presents almost insurmountable obstacles for
licensing of operations of poverty-driven small-scale miners. Interventions to penalise those
working illegally has proved inefficient as long as they don’t address root causes of informal
such as access to land, geological data, finance and ease of licensing (McQuilken & Hilson,
2016)
Small-scale gold mining is often perceived as illegal because of illegal activities that
dominates the sector; it is dominated by unregistered actors (60-80 per cent), small-scale
mining also includes registered miners (McQuilken & Hilson, 2016; see Appendix B).
However, it has been made illegal towards the end of the 1980.
This paper will focus on illegal small-scale mining. As current situation demonstrates
that the lack of regulation and formalisation of operations of the illegal activities, this paper
will address the impacts of the sector such as the environmental impacts and the land issues.
Specifically, the recommendation of the paper will be directed towards putting forward ways
in which the government could effectively regulate the sector and its activities and the
customary land tenure system that invariably contributes and fuels the illegal mining sector.

Problem Statement
Small scale gold mining has been made legal in Ghana by the later part of the 1980s.
The sector adds onto the general economic output of the country as a whole and specifically
serves as a source of livelihood for many local Ghanaians in the country. However, the
negligence on the side of the government of Ghana of the sector, leading to illegal mining
activities, is resulting to grave consequences to the environment and also serves as a barrier to
other sectors or activities such as farming.

The government priorities the large-scale mining sector as it attracts huge foreign
direct investment. The lack of regulation and a wholesome and effective formalization of the
illegal mining activities gives way to illegal miners in using chemicals, embark on
indiscriminate activities that result in environmental problems. Illegal miners have been

5
operating without license and as such do not follow any standard practice leading to
environment problems.

In addition to government negligence of the sector, the customary land tenure system
is a factor that fuels the small-scale illegal mining industry. Chiefs allocate land to these
illegal miners to conduct their activities at even the detriment of farming activities at the
current moment and in the future as the land degenerates because of the heavy gold mining
activities. It is estimated that about 30% of the nation’s land reserves has been sold by
traditional leaders to more than 200 illegal small-scale gold mining companies for their
operation including 2% of the county’s forest (Hilson, 2002a. cited in Poku, 2016).

Proper institutions and institutional frameworks have not been put in place to regulate
the operations of the illegal small-scale gold mining activities for the consequences that the
activities lead to. This should be situated within the context of a proper management of a
natural resource.

Description of the Natural Resource: Gold

Gold is a chemical object. Scientifically it has an atomic number 79 and Au as a
symbol. It is a dispersed but a rare element on the earth’s surface. Physically it has a yellow
colour (Rudolf et al., 2012, p. 261). Civilizations at an early stage held gold in equivalence to
gold and it represents power, beauty, and the cultural elite. Modern civilizations hold it in a
similar light (Gimeno, 2008). Worldwide gold is demanded under three specific categories of
industry, investment and jewellery (Guirane, et al., 2012).

Economically it plays multifaceted role in both national and international economies.

It is an important source of revenues for governments of countries that it is found it, it has
served as currency (UN, 2016), and a source of capital for foreign investors and livelihood
for the local people.

The importance of gold, specifically in for the people of Ghana, especially the small-
scale miners, is that it is the mineral that; the people can generate wealth from in the quickest
possible time and it is one of the two most important minerals in the country (Hilson, 2001).

Research Questions
1. How does the small-scale illegal gold mining in Ghana impacts on the environment?
2. What are the factors that lead to or fuel illegal mining activities?

6
 3. What could be done to effectively formalize operations of illegal mining and regulate
the sector?

Terminology
The focus of the study is on illegal small-scale gold mining. Such concepts as illegal
small-scale mining, unregulated, unlicensed and informal small-scale gold mining or informal
small-scale mining will be used interchangeably. Legal or formal small-scale mining is
referred to as small-scale mining by default. The term “galamsey”, widely used in Ghana, is
applied in relation to illegal small-scale miners, while small-scale miners are deemed to be
legal or licensed small-scale miners.
There is no precise definition of small-scale mining. McQuilken and Hilson define
artisanal and small-scale mining as “a collective term referring to low-tech, labour-intensive
mineral processing and extraction” (McQuilken & Hilson, 2016, p. 10). According to small-
scale mining regulations, small-scale mining concession shall not exceed 25 acres, while
license applicant must be citizens of Ghana at least 18 years old (McQuilken & Hilson,
2016). Thus, formal small-scale mining implies that its operations have necessary licences
and permits required by law, and conform to regulations, policies and management practices,
while informal small-scale mining refers operations that do not have mining licence and
environmental permits required by law (McQuilken & Hilson, 2016). It is important to
mention that McQuilken and Hilson formulate a concept of “social license to operate” from
the local community (McQuilken & Hilson, 2016). This concept is of the essence as it points
out to the dichotomy between customary and statutory systems. Such dichotomy plays a
critical role in the regulation of small-scale mining, especially in relation to allocation of land
for operations. The situation of existence of the customary land tenure creates foundation for
conflicts while authority to control access and license concessions is vested in the state via
the Minerals Commission. For this reason, this research will examine in detail land relations
in Ghana and how they present challenges to formalisation of the sector.
The findings of the study are based on a review of literature, including studies
containing extensive primary research data (e.g. McQuilken & Hilson, 2016) and analysis of
the legislative framework of the mining sector in Ghana (Minerals and Mining Policy of

7
Ghana, 2014; Artisanal & Small-scale Mining (ASM) Framework, 2015). Literatures of
Amanor, Hilson and Hausermann & Ferring were instrumental in examining land tenure
system in Ghana in relation to the land dispute between small-scale and large-scale miners
(Amanor, 2008; Amanor, 2013; Hilson, 2001; Hausermann & Ferring, 2018).
Mining in Ghana dates back to about 2000 years ago (Adu-Gyamfi et al.2016). Small-scale
illegal gold mining in Ghana customarily involved the use of basic tools such as pickaxes,
shovels, spades, chisels, and hammers by unskilled personnel with little or no education to
excavate gold or gold-bearing rocks from the earth. (Bansah et al 2016)
Illegal gold mining processes in modern-day Ghana involve the application of heavy
dozers, excavators, trucks, and earth machinery such as backhoe, etc. Handling facilities
programmed washing plants to render activities less labor-intensive and increase the scale of
the process as well as their socioeconomic perspective (Bansah et al., 2016). (Adu-Gyamfi et
al.2016). There is a lot of evidence showing that valuable metals from small-scale gold
mining activities in Ghana attracted Arab traders to certain areas of the country as early as the
7th and 8th centuries AD. The rich gold deposits of the coast of Western Sahara largely
contributed to the wealth and strength of large ancient Ghanaian empires. There are so many
ways in which small-scale illegal gold mining takes place in all the mining communities in
Ghana. Owusu and Dwomoh (2012). In Ghana, activities of small-scale illegal gold miners
are always carried out in the darkness at night and also through secrete a place such as rivers
beds forests, existing farms, valleys, and remote locations. Owusu and Dwomoh (2012).
Furthermore, illegal gold mining in Ghana is engaged by all types of a person which
includes children, men, women, aged, and teenagers. Owusu and Dwomoh (2012). Moreover,
in Ghana, illegal gold miners work in groups of three to five to dig holes along the banks of
rivers and streams, collect gold with sacks, pour them into barrels and then use sticks and
water to wash away the smooth sand from the stones. Owusu and Dwomoh (2012). Through
the activities of small-scale illegal gold miners in Ghana, perforated metal containers
normally referred to as top are used for the separation and the sands are collected for further
treatment. Again, wooden rectangular trays with a net under are used to pick the gold from
concentrates in the wooden rectangular tray. Owusu and Dwomoh (2012)
Ghanaian government considered plans to formalize the sector after having acknowledged
the possible earnings of the industry. (Hilson, 2001). In Ghana, a lot of revenue lost under
illegal gold mining through smuggling and other means of illegal gold trading. The biggest
challenge to the process of formalization is the difficulty to obtain the necessary

8
documentation and training. However, small-scale miners still engage in illegal gold mining
in Ghana by bypassing the due process. (Hilson, 2001)
Moreover, in Ghana, mining activities form part of the country’s economic growth.
Mining creates employment opportunities, both direct and indirect, for the people in the
communities where mining takes place. At the same time, the communities, where illegal
gold mining activities takes place, face multiple issues such as pollution, deforestation, land
degradation, and the lack of some basic needs and other social vices which mainly point to
the activities of illegal gold miners and some genuine small-scale gold miners. Illegal gold
miners in Ghana have no proper certification, therefore, there are no proper measures that
protect and guard them.
The 10th leading producer of gold in the world is Ghana. In Africa and the world at
large, Ghana has a general history of mining before the colonial period. The Mining of gold
in Ghana during the pre-colonial period was done in the coaster areas of Ghana. That is
where Ghana derived its colonial name. During this period, small-scale mining, also known
as artisan mining, was practiced.
The Government of Ghana took proper steps to create institutions mainly to enact
laws to control the actions of citizens involved in illegal mining. Ghana government then
established necessary measures and principles to facilitate the methods of obtaining a license
for individuals and corporate bodies who want to engage in the mining sector. The mineral
and mining standards were introduced under Precious Minerals Marketing Corporation Law
153 (PNDC Law) in 1986 to regulate and register the activities of mining companies in
Ghana (Hilson, 2001; Adu-Gyamfi et al., 2016).

Brief history of small-scale illegal gold mining in Ghana

Mining in Ghana dates back to about 2000 years ago (Adu-Gyamfi et al.2016). Small-scale
illegal gold mining in Ghana customarily involved the use of basic tools such as pickaxes,
shovels, spades, chisels, and hammers by unskilled personnel with little or no education to
excavate gold or gold-bearing rocks from the earth. (Bansah et al 2016)
Illegal gold mining processes in modern-day Ghana involve the application of heavy
dozers, excavators, trucks, and earth machinery such as backhoe, etc. Handling facilities
programmed washing plants to render activities less labor-intensive and increase the scale of
the process as well as their socioeconomic perspective (Bansah et al., 2016). (Adu-Gyamfi et
al.2016). There is a lot of evidence showing that valuable metals from small-scale gold

9
mining activities in Ghana attracted Arab traders to certain areas of the country as early as the
7th and 8th centuries AD. The rich gold deposits of the coast of Western Sahara largely
contributed to the wealth and strength of large ancient Ghanaian empires. There are so many
ways in which small-scale illegal gold mining takes place in all the mining communities in
Ghana. Owusu and Dwomoh (2012). In Ghana, activities of small-scale illegal gold miners
are always carried out in the darkness at night and also through secrete a place such as rivers
beds forests, existing farms, valleys, and remote locations. Owusu and Dwomoh (2012).
Furthermore, illegal gold mining in Ghana is engaged by all types of a person which
includes children, men, women, aged, and teenagers. Owusu and Dwomoh (2012). Moreover,
in Ghana, illegal gold miners work in groups of three to five to dig holes along the banks of
rivers and streams, collect gold with sacks, pour them into barrels and then use sticks and
water to wash away the smooth sand from the stones. Owusu and Dwomoh (2012). Through
the activities of small-scale illegal gold miners in Ghana, perforated metal containers
normally referred to as top are used for the separation and the sands are collected for further
treatment. Again, wooden rectangular trays with a net under are used to pick the gold from
concentrates in the wooden rectangular tray. Owusu and Dwomoh (2012)
Ghanaian government considered plans to formalize the sector after having acknowledged
the possible earnings of the industry. (Hilson, 2001). In Ghana, a lot of revenue lost under
illegal gold mining through smuggling and other means of illegal gold trading. The biggest
challenge to the process of formalization is the difficulty to obtain the necessary
documentation and training. However, small-scale miners still engage in illegal gold mining
in Ghana by bypassing the due process. (Hilson, 2001)
Moreover, in Ghana, mining activities form part of the country’s economic growth.
Mining creates employment opportunities, both direct and indirect, for the people in the
communities where mining takes place. At the same time, the communities, where illegal
gold mining activities takes place, face multiple issues such as pollution, deforestation, land
degradation, and the lack of some basic needs and other social vices which mainly point to
the activities of illegal gold miners and some genuine small-scale gold miners. Illegal gold
miners in Ghana have no proper certification, therefore, there are no proper measures that
protect and guard them.
The 10th leading producer of gold in the world is Ghana. In Africa and the world at
large, Ghana has a general history of mining before the colonial period. The Mining of gold
in Ghana during the pre-colonial period was done in the coaster areas of Ghana. That is
where Ghana derived its colonial name. During this period, small-scale mining, also known

10
as artisan mining, was practiced.
The Government of Ghana took proper steps to create institutions mainly to enact
laws to control the actions of citizens involved in illegal mining. Ghana government then
established necessary measures and principles to facilitate the methods of obtaining a license
for individuals and corporate bodies who want to engage in the mining sector. The mineral
and mining standards were introduced under Precious Minerals Marketing Corporation Law
153 (PNDC Law) in 1986 to regulate and register the activities of mining companies in
Ghana (Hilson, 2001; Adu-Gyamfi et al., 2016).

Advantages of small-scale illegal gold mining in Ghana

According to the World Bank, small-scale mining occurs in almost 80 countries

worldwide, generating income to estimated 100 million small-scale miners and their families
and providing livelihoods for the communities where it occurs (Bansah et al., 2016).
Hilson (2001) evaluated that mineral production from small-scale mining contributes
roughly one-sixth of worldwide mineral output. Moreover, in Ghana, since complete
legalization of its small-scale mining sector, a lot of revenue has been generated in the sector
at the national and individual level. Before Ghana legalized and allowed small-scale gold
mining operations in the country, most of this revenue was lost through illegal smuggling
links. Important quantities of valuable mineral product, in particular gold, were lost to
neighboring Burkina Faso, Nigeria and Togo.
According to Bansah et al (2016), the government of Ghana, having recognized the
significance of small-scale mining, introduced the Small-Scale Gold Mining Law (PNDC
Law 218) in 1989 to improve the sector and facilitate its supervision. After introduction of
the small-scale mining law of the Minerals Commission of Ghana - the authority responsible
for supporting the Minister of Lands and Natural Resources with small-scale licensing and
monitoring of operations, recognized seven small-scale mining district care centers to provide
official addition services to the miners and improve supervision to reduce related
environmental and safety dangers.
Moreover, according to Hilson. (2001), significant numbers of rural population is
involved in small-scale illegal gold mining because the industry pays meaningfully higher
wages than most other sectors of manufacturing. Again, in Ghana where GNP per capita is
$390, small-scale mining worker earns roughly $7 each day, which, for a five-day working

11
week, amounts to $1,820 annually. Hilson (2001) highlights the following important revenue
and employment characteristics of the Ghanaian small-scale mining industry presented
below.
Employment statistics:
• Projected 30,000 people work on registered plots, but more than 170,000 people in
the country are involved in illegal mining.
• 15 per cent of female workers are engaged in legal section and 50 per cent in illegal
section.
• 60 per cent of the known Ghanaian mining labor force works at small-scale mines
(Hilson, 2001).
Revenue statistics:
• Almost two-thirds of the Country small-scale mining business is engaged in the
extraction of gold.
• Over 117 million dollars in gold have been obtained from small-scale mining
operations, since the Government completed the legalization of the industry in 1989.
• Moreover, small-scale gold production per hectare increased closely tenfold since
1989: from 17,234 oz in 1990 to 107,093 oz in 1997 (Hilson, 2001).

Environmental impact of illegal small-scale gold mining in Ghana

Small-scale gold mining in Ghana has a significant positive impact on employment.

However, it has caused serious environmental problems to even the mining communities.
(Hilson,2000). The common problem developing countries face is the current implementation
of national environmental law, and the laws related to mining specifically which have failed
to successfully control all components of the industry (Hilson, 2000). In the case of illegal
gold mining, environmental problems normally occur because of utilization of highly
unproductive equipment, low safety awareness and level of training, poor exploitation of
accessible resources, low wages, chronic shortages of capital, and lack of environmental
standards. (Adu-Gyamfi et al. 2016).
Environmental effects of illegal gold mining in Ghana include mercury pollution of soils and
water, land degradation, destruction of flora and fauna (Bansah et al., 2016; Aryee et al.,
2003; Babut et al., 2003; Hilson, 2002; Bonzongo et al., 2003). Chemicals that illegal gold
miners use destroy their farmlands and pollute the air, not to mention soil erosion caused by

12
using mining machinery. Mercury contamination and land degradation are the two paramount
severe environmental problems faced in small-scale gold mining regions of Ghana (Hilson,
2000). The environmental impacts by illegal gold mining activities in Ghana include
agriculture, water land, air and noise pollution, because these effect the quality of life of
people in the mining areas and the entire Country.(Emmanuel et al.2018).Moreover,
Emmanuel confirms four main types of illegal mining impacts on water quality: acid mine
drainage, heavy metal contamination and leaching, processing chemicals contamination and
erosion and sedimentation. (Emmanuel et al.2018)
Because of illegal gold mining activities and the application of some chemicals that are
harmful to the water bodies many rivers streams and other water bodies are being polluted
and the water and streams dry up making it difficulties for some people getting access to
drinking water. (Emmanuel et al.2018)
According to the Obuasi municipal assembly in Ghana annual development report, all major
rivers and streams (Kwabrafo, Pompo, Nyam, Jimi, Akapori, Wheaseammo and Kunka) have
been polluted by the activities of illegal gold miners. (Emmanuel et al.2018).
Illegal small-scale gold miners engage in stream diversion for their mining and this
leads to flooding in the mining areas killing and destroying properties in Ghana. (Emmanuel
et al, 2018) The Centre for Environmental Impact Analysis (2011) published a report (as
cited in Emmanuel et al, 2018) on the “Human Health Risk Valuation and Epidemiological
Studies from Exposure to Toxic Chemicals in the Tarkwa-Nsuaem Municipality, Prestea
Huni Valley District and Cape Coast Metropolis in Ghana, found that oral ingestion and
dermal contact of water and soil/sediments trials as well as oral ingestion of cassava polluted
with high levels of toxic chemicals such as arsenic, cadmium, cobalt, copper, lead,
manganese, mercury and zinc led to high levels in whole blood and blood serum of
inhabitants in the Tarkwa-Nsuaem Municipality and Prestea Huni Valley District as
associated to residents in the Cape Coast Metropolis in Ghana. (Emmanuel et al, 2018)
Hilson (2000) argues that illegal gold mining activities in Ghana are accountable for
producing several often permanent erosional and siltation processes. But the most serious
environmental problem in the small-scale illegal gold mining in Ghana is extreme mercury
pollution. Metallic mercury (Hg) being used by small-scale illegal gold miners in Ghana for
treating gold has destroy farming lands in Ghana. (Hilson.2000). Mercury pollution has
affected Ghana as a nation. However. (Hilson .2000). Confirms that poor mercury controlling
application is prevalent in all developing world.
Moreover, concerning of health hazards, the chemicals used in handling gold in mining areas

13
in Ghana has generated a lot of toxic gases and fumes which are accountable for lung
diseases such as tuberculosis. Apart from significant water pollution, actions of illegal gold
mining in Ghana turn away watercourses from the mining sites (Bessah, cited in Adu-Gyamfi
et al. 2016). This brings about changes to the natural watercourse which leads to the surface
water pollution. Moreover, water pollution by the activities of illegal gold mining in Ghana
occurs mainly in four key areas which include the release of metals, acid rock drainage,
siltation and water use. Water contamination is one of the pressing issues for the communities
in the vicinity of illegal mines as they experience the shortage of such a basic resource as
potable water. Illegal gold mining activities cause substantial harm to lands. More precisely,
illegal gold mining in Ghana forms part of the formal removal of vast amounts of external
vegetation and mass deforestation (Hilson, 2000). Where small-scale illegal gold miners
operate, the vegetation cover is naturally cleared (Bessah, cited in Adu-Gyamfi et al. 2016).
Ghana has one of the highest deforestation rates in Africa and in the world.
Illegal gold miners usually abandon pits and drains without properly recovering spoils. It is
therefore quite common in Ghana to find, following periods of intensive prospecting,
landscapes damaged with holes. Therefore, artisanal mining tends to create significant
damage to landscapes which can be clearly observed through potholes lacking vegetation
cover after stages of concentrated prospecting by illegal gold mining activities (Hilson, cited
in Adu-Gyamfi et al. 2016).
In Ghana one major environmental impact of small-scale illegal gold mining is land
degradation more specifically, clearing vast expanses of forest, digging trenches and the
upturning of vegetation which in turn leaves land bare and exposed to agents of erosion
(Hilson,2001) Approximately 15,000ha of land are potentially affected by small-scale mining
activities and as Iddirisu and Tsikata (cited in Hilson,2001).Clarify that, it is quite common
for prospective sites to be stripped bare of vegetation topsoil, and where deep underground
mining has occurred, that pits are left uncovered and abandoned, and several pits filled with
water serve as breeding grounds for malaria-infected mosquitoes in Ghana. (Hilson,2001).
Illegal gold mining has total impacts on agricultural lands and the environment, mainly water
bodies and rivers. (Hilson,2001). (Pallen,2017). Major rivers in the gold mining communities
has been contaminated and are not good for human consumption while gaping and dangerous
pits have been left over in farmlands of the mining areas and riversides killing a lot of people.
According to Pallen, the activities of small-scale illegal gold mining in Ghana, also has a
negative impact on health because people living in the mining areas and worker are all open
to health and safety risks connected with dust inhalation, major injuries and mercury

14
poisoning from illegal gold mining area where safeguards are few and industrial accidents are
prone. (Pallen,2017)
Apart from environmental problems that illegal small-scale mining leads to, there are health
hazard caused by dangerous working conditions of unmonitored illegal mining and cases of
disregard for basic safety protocols resulting in death, damage to property and to the
environment. For example, collapse of pits through illegal gold mining causes casualties and
even deaths. Illegal miners run a continuous risk of being buried alive, not to mention the
health concerns of applying mercury to recuperate gold due to the lack of control over illegal
mines.

Land use and illegal small-scale mining in Ghana

Gold belts in Ghana - Sub-Saharan Birimian and Tarkwian - are situated mostly in the
Western, Central, and Ashanti Regions, and collectively cover approximately one-sixth of the
surface area of Ghana (Hilson, 2001). Land use conflicts between small- and large-scale
miners mainly occur within the locations of the country’s richest gold deposits - Tarkwa and
the Ashanti Region (see Appendix C; Hilson, 2001, p.150).
There are two types of land disputes associated with small-scale gold mining: i) land
disputes between illegal small-scale miners (galamsey) and large-scale mining operators, and
ii) alienation of agricultural land by foreign small-scale miners. These conflicts are driven by
the shortage of land as a means of livelihoods, and, at the same time, a few employment
opportunities apart from farming and small-scale mining (Amanor, 2013).
The later land dispute involves both illegal and legal small-scale miners but mostly
applies to the situation of licence mining where land lease and mining license are obtained
through corrupt practices and agricultural land is alienated with insufficient or no
compensation. In this case, local officials are involvedd into practices that contradict laws
and regulations of the Republic of Ghana that provide popular rights of Ghanaian citizens to
small-scale mining. However, small-scale mining is reserved only for Ghanaian citizens;
foreign nationals procure and fully operate concessions (Hausermann & Ferring, 2018).
Hausermann and Ferring mention that 70 per cent of small-scale mining concession in Ghana
is held by Chinese nationals (Hausermann & Ferring, 2018). It is important to point out that,
however land disputes in two above-mentioned scenarios may have a different manifestation,
in both cases the root cause of conflicts is unrecorded land transactions, overall weak land
administration system, lack of reliable maps and of access to land data.

15
 Land disputes between galamsey and large-scale mining companies happen when
small-scale miners operate illegally within the same concession large-scale ccompanies
obtained from the Ghanaian Minerals Commission. The underlying cause of such disputes is
land ownership system that vests decision-making power on land allocation in chiefs and
cultural relationships of community members with the land. It is closely related to
criminalisation of the righto livelihoods and subsequent actions to defend these rights
(Amanor, 2013). Although both scenarios (land grabs by foreign small-scale miners and
dispute between small-scale and large-scale miners) represent a challenge to sustainable
management of gold mining sector and have serious environmental and socio-economic
implications.
In many African countries, customary land tenure systems consist of communal ownership of
land. Ghana is not an exception. Customary land tenure system and community ownership is
not as straightforward as it may seem as there are no mechanisms to formally recognise
customary arrangements within the state system of land administration. Customary
transactions remain undocumented which creates environment for corrupt practices such as
multiple selling of land plots, dispossession of land users by chiefs before land reaches the
market (Amanor, 2008). Amanor claims that, contrary to the assumption that customary land
relations are widely accepted throughput history, in reality, they have been always contested
(Amanor, 2008).
In Ghana, community are represented by chiefs who play a role in the local
government as a liaison between local communities and local government units (e.g. District
Assembly). During colonial period, colonial authorities ruled through the alliance with chiefs.
According to the customary land relations, community members are allocated only
user (usufructuary) rights to land, while paramount chiefs possess allodia rights to manage
the land on behalf of the community. Thus, products that derive from the use of land belong
to the subjects of chiefs but not the land itself (Amanor, 2008). Concessions over land were
negotiated by chiefs who often alienated land to migrant farmers at the expense of
community members (Amanor, 2013). After independence, the structure was maintained with
the only difference that chiefs could no longer negotiate concessions with the private sector.
The sovereign replaced the colonial administration in the alliance with chiefs. The
Concession Ordinance, the Stool Lands Ordinance, and the State Lands Ordinance vested
power to negotiate concessions in the state. However, chiefs retained the benefit of gaining
royalties and rents associated with this process. This created incentives for chiefs to

16
expropriate communal land to the corporate sector, as commoners paid no royalties of land
taxes (Amanor, 2013).
Lack of documentation of transactions within customary land tenure system generates
conflicts taking into consideration mobility of rural population. Strictly speaking, as
examples from colonial period demonstrate, if customary tenure is not harmonised with
statutory tenure and thus prone to corrupt practices, any foreigner, weather a foreign national
or a member of another community, potentially presents a threat to the just distribution of
land. Within this system, limited ability to represent rights of communities without recurring
to traditional power authorities marginalises community members. Additionally, as formally
chiefs are deemed to represent community rights and there is no political space for
community members to express disaccord, attempts of commoners to defend their rights to
means of livelihoods are criminalised by the state.
Another factor contributing to the land dispute between illegal small-scale miners and
large-scale mining operators is cultural relationships or ancestral ties of galamsey with the
land, on one hand, and on the other hand, provisions of Ghanaian law which stipulate that
although land belongs to its inhabitants, minerals are exclusively the property of the
government. (Hilson, 2002). Mineral deposits were vested in the state by 1962 Minerals Act.
The federal government, via the Minerals Commission, controls mineral access and
concession licensing. (Hausermann & Ferring, 2018). The factor of ancestral ties with land
which gives illegal miners “social license to operate” (McQuilken & Hilson, 2016, p.10)
contributes to the perception that government actions are illegitimate and justify aggressive
attacks against large-scale mining companies.
It is also important to mention that galamsey is not a homogenous group. They consist
of local villagers where large-scale mining companies operate, displaced workers from large-
scale mines, and small-scale mining cooperatives. Thus, argument of ancestral ties with land
doesn’t apply to every galamsey and raises questions if competition for land within the group
of small-scale miners arises.
As further information, in addition to the customary land system, the conflict between
large-scale gold mining operators and galamsey, witnessed in recent decades was further
fuelled by the interest of the government of Ghana to attract foreign investment in the mining
sector.
However, recently, the largest mining operators, such as Gold Field Ghana and
Abosso Goldfields, realised the importance of building relationships with local communities
(Hilson, 2001). While Teschner points out that there is a continuum between formal and

17
informal mining where registered and unregistered actors are intertwined and operate in
parallel (Teschner, 2012), Hilson brings examples of successful attempts of Gold Field Ghana
and Abosso Goldfields to build relationships with local communities (Hilson, 2001).
As illegal miners increase the efficiency of the sector by operating the mines that
represent no commercial interest to large-scale operators and otherwise would be abandoned,
Gold Fields started releasing land that doesn’t hold high potential for large-scale mining to
resident small-scale miners and, as for unused land, - it is released back to the government.
The company later purchases the mined product at prevailing market prices (Hilson, 2001).
At the same time, Abosso Goldfields identified registered, regrouped galamsey to work
alluvial and consolidated gravel deposits.
The company also provided a qualified mining engineer to supervise small-scale
mining operations and provide environmental and health and safety training (Hilson, 2001).
Gold Fields Ghana is also known for establishing small-scale mining cooperatives. A
cooperative, named “Small-Scale Mining Society’’, was established in 2000 to work the
suspended underground operation (suspended due to low gold prices). As above-mentioned
examples demonstrate, forging partnerships with galamsey by allocating resources, such as
land, in this case, to them brings increased productivity and economic efficiency to the gold
mining supply chain.

Policies to regulate the sector

Historically, Ghana’s mining sector has largely prioritised the development of large-
scale activities (McQuilken and Hilson, 2016). Roots of marginalisation of the small-scale
mining lay in colonial era, when according to the Gold Mining Products Protection
Ordinance, Ghanaians were prevented from dealing in gold ore, amalgam, bullion, retorted
gold, slags and concentrates. The 1932 Mercury Ordinance made it illegal for Ghanaians to
own mercury (Eshun, 2005, p. 61). However, last decade was marked by a shifting focus
towards strengthening regulation of small-scale mining as attempts to penalise illegal small-
scale miners proved inefficient over years.
In 1983 Government launched the Economic Recovery Programme (ERP). As mining
sector was identified as one of the key sectors that could revive the economy, the Minerals
and Mining Law (PNDC Law 153) was passed in 1986 to promote orderly development of
the sector, as well as a series of laws to regulate, promote and completely legalise small-scale
mining. The Small-Scale Gold Mining Law (PNDC Law 218), the Mercury Law (PNDC Law

18
217), and the Precious Minerals Marketing Corporation Law (PNDC Law 219) were passed
in 1989 to regulate small-scale gold mining and the use of mercury by small-scale gold
miners, and provide official marketing channels for gold produced by small-scale miners
(Minerals and Mining Policy of Ghana, 2014, p. 10).
These laws led to a significant investment and subsequent increase in the production
of gold in the country, for example, total gold production by artisanal and small-scale miners
had risen from 2.2% in 1989 to 34% of the national production in 2012 (Minerals and Mining
Policy of Ghana, 2014, p. 11). By the Mining Operations (Government Participation)
Decree, 1972 (NRCD 132), the government acquired majority shares (55%) in all the foreign
mining companies. Currently, the sector is fully nationalised. 1986 Minerals and Mining Law
was replaced by 2006 Minerals and Mining Act. Small-scale operations are distinguished
from other operations in order to reserve rights to conduct such operations to Ghanaian
citizens (Minerals and Mining Policy of Ghana, 2014).
In 1986, The Minerals Commission was established to regulate and administer mining
sector. Small-Scale Mining Unit of the Minerals Commission is responsible for promotion of
environmental and socioeconomic improvements in the small-scale segment of the sector
(Hilson, 2011). The Environmental Protection Agency (EPA), the Forestry Commission and
the Water Resources Commission are responsible for environmental regulation of the mining
sector. However, EPA is predominantly involved in regulation of large-scale mining (Hilson,
2011). Similarly, the Ghana Chamber of Mines, the national body in charge of mining
industry, has little, if any, role in regulating small-scale mining (Hilson, 2001).
Until 2014 Minerals and Mining Policy remained in draft since the date of its
initiation in 1999. The policy as well as Artisanal and Small-Scale Mining (ASM)
Framework envisage simplifying and decentralising the licensing process and manage land
use conflicts by developing standardised procedures to promote effective participation of
communities in the licensing process and designation of areas through community
representation in public hearings and deliberations at the District Assembly level.
The Minerals and Mining Policy and the ASM Framework proclaim promotion of
interests of small-scale mining in terms of access to finance, land, training, market and good
practices information as well as encourage large-scale mining companies to forge
partnerships and support small-scale miners where it is in the mutual interests of the parties.
Similarly, government acknowledges the need to periodically review regulatory framework
within which artisanal and small-scale operations take place (Minerals and Mining Policy of
Ghana, 2014; Artisanal & Small-scale Mining Framework, 2015).

19
Recommendations
1. Government is currently planning sector’s development with the following
objectives to promote small-scale mining in mind: i) generation of adequate geo-scientific
data to promote investment and detailed geological information in designated areas for
demarcation to artisanal and small-scale miners; ii) creation of opportunities for artisanal and
small-scale scale miners to access financing, promotion of social harmony between the mines
and adjoining communities (Minerals and Mining Policy of Ghana, 2014, p. 17). However,
the question how these principles will be implemented remains and presents the essence of
this research. Thus, strengthening of institutional framework and capacity at the local level is
critical in successful implementation of the recommendations presented below.
2. Monitoring of illegal gold mining activities in Ghana is essential. It is
important to make sure that gold extraction in Ghana and other mining activities in the
country are not done close to the sources of drinking water.
3. However, monitoring operations of illegal small-scale miners and providing
their compliance with environmental standards is a quasi-impossible task in situations where
illegal gold mining are legally invisible. Taking into consideration the fact that the sector is
predominantly populated by unregistered actors, this negatively affects efficiency of gold
mining supply chain and has negative environmental implications. As successful examples of
Gold Fields and Abosso Goldfields demonstrate, building relationships with illegal gold
miners yields positive results and brings additional productivity to the mining supply chain.
Thus, government should reinforce the legal framework that i) creates inclusive mechanisms
for small-scale miners to legally operate within concessions allocated to large-scale mining
operators, ii) legally obliges large-scale mining operators to engage, train, and provide
technical support to illegal gold miners to sustainably operate mines that no longer represent
high potential for large-scale operations thus bridging the gap between technical capacity of
illegal small-scale miners and statutory requirements. Such measures would provide legal
visibility to illegal gold mining, as small-scale miners are registered as individuals or
members of the cooperative, who due to the cumbersome and costly procedure of small-scale
mining licensing, especially for illiterate miners, cannot operate formally, and ensure efficient
use of resources and human capital. Hence, provision of environmental standards remains the
responsibility of large-scale operators. Creation and reinforcement of inclusion mechanisms
also performs a very important function of capacity building of local communities.
4. Strengthening regulations but also institutional framework will help to bring
small-scale miners to formality that has resources and skills to formalise but choose not to.

20
Consequently, formalisation of the sector implies stronger control, improved provision of
environmental and health and safety standards, and more sustainable and community-based
development of the sector.
5. To provide technical assistance to small-scale miners, the Minerals
Commission has established a series of small-scale mining district centres. Such centres are
instrumental in resolving land use disputes, but, unfortunately, all of them are situated in the
southern part of the country (Hilson, 2001). If the government invests more resources in
small-scale mining centres and their staffing, they can serve as a liaison between the centre
and the district level and become an effective tool of empowerment of community-based
small-scale miners as well as facilitation of formalisation of their operations, thus
contributing to decentralisation of the sector and the licensing process.
6. Apart from technical assistance, broader educational campaign to build
awareness about long-term and short-term dangers of their activities is instrumental. The
entire communities in Ghana where illegal gold mining activities take place should be well
educated on the general risk associated with the chemicals use to extract gold to prevent them
from polluting their water bodies.
7. Decentralisation of the licensing process also requires capacity-building at the
district level and access to land and geo-data. Many land transactions negotiated through
traditional chiefs remain unrecorded. Without functional mining cadastre, it is hard to achieve
transparent and accountable management of awarding concessions. Manor suggests that
traditional chiefs should be trained to manage land and document transactions to make
customary transactions more transparent (Antwi and Adams 2003; Toulmin and Quan 2000b,
cited in Amanor 2013)

Conclusion
Foundation for marginalisation of the small-scale mining was laid in the colonial
legislation regulating the sector. The discriminatory Gold Mining Products Protection
Ordinance and the Mercury Ordinance, introduced under the British colonial administration,
made involvement of the local population, considered indigenous at that time, in small-scale
gold mining in then Gold Coast illegal. This largely defined future prioritisation of the large-
scale mining in the country. However, as the Ghanaian government identified economic
potential of small-scale mining and its positive effect on employment and community
development, a series of laws were passed to regulate the small-scale segment of the sector.

21
Apart from introduction of small-scale segment-related regulations, institutions specifically
responsible for small-scale mining such as Small-Scale Mining Unit of the Minerals
Commission were established. Current regulations, e.g. 2014 Minerals and Mining Policy and
Artisanal and Small-Scale Mining (ASM) Framework imply promotion of participatory
development and management of the small-scale segment of the sector. They tend to create
mechanisms for resolution of land disputes that arise from the parallel existence of the
traditional and statutory land tenure systems in Ghana, lack of capacity of traditional
authorities in documenting land transactions and corruption associated with this. In fact, this
dichotomy was also determined by colonial and entrenched in post-colonial regulations.
Provisions of Ghanaian law which stipulate that although land belongs to its inhabitants,
minerals are exclusively the property of the government creates inequality of opportunity for
community members, having in mind that, in economic terms, agriculture is considered less
productive than mining by the government. While existence of traditional land tenure system,
where transactions are not documented, in parallel with the statutory land tenure amplified by
corruption creates the basis for manipulations with land at the expense of community
members.
Another factor that caused marginalisation of the sector is negative image it has in the
local media due to environmental implications attributed mostly to illegal gold mining
activities. Government adopted aggressive approach towards illegal small-scale mining until
it realised that such measures don’t yield positive results. Current regulations of the sector
represent the effort of the government to gain more control of small-scale mining activities
and facilitate formalisation of the sector. However, the process of obtaining license remains
cumbersome and costly and this leads to people engaging in mining illegally, especially for
people who are in their majority illiterate and pushed towards small-scale mining by poverty
and lack of opportunity. Small-scale mining district centres is one of the successful initiatives
implemented by the government, however, their spread across the country remains
insufficient as they cover only the southern part of Ghana. Apart from provision of technical
assistance to small-scale miners which should also include a strong educational component,
small-scale mining district centres, if appropriately staffed and adequately funded, have a
potential to fill the gap between the centre and the regions and further contribute to
decentralisation of the license acquisition process. However, decentralisation of the licensing
process requires development of functional mining cadastre to facilitate access to land and
geo-data.

22
 In a broader sense, poverty and illiteracy play a significant role in the negative impact
illegal small-scale mining produces. Environmental educational campaign could create
awareness about environmental implications of illegal small-scale mining activities among
broader population, but these initiatives should go hand in hand with the efforts to create
conditions and necessary support for the smooth formalisation of the small-scale mining
activities. Technical assistance includes provision of environmental and health and safety
training. This could be provided not only through the small-scale mining district centres but
involving resources of the large-scale mining companies as well. Recent experience of such
companies as Gold Fields Ghana demonstrated that the strategy to build relations with local
communities and invest in building human capital reduces occurrence of conflict. It also has
economic benefits such as increased productivity and efficiency of mining operations, as
small-scale miners operate mines that no longer represent commercial interest for large-scale
mining. Mechanisms of co-operation with large-scale mining companies should be further
explored.
It appears that current policies try to address important issues that challenge
sustainable development of the small-scale gold mining in Ghana. The key question that
should be answered while measuring the impact of the policies addressing illegal small-scale
mining is: if these policies will bring more formality and efficient control to the sector?
Further reinforcement of the policies adopted in the recent years will define how successfully
they will be implemented and what impact they will have on illegal small-scale mining.

23
Appendix A

Source: Baah-Boateng, 2018

24
Appendix B

Source: Baah-Boateng, 2018

25
Appendix B. Prospective gold mining areas in Ghana.

Source: Hilson, 2001, reproduced from NSR, 1994.

26
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