The Republic of Ghana is located in West Africa and is rich in mineral resources, including gold, diamonds, bauxite, and manganese. The mining industry is one of Ghana’s most important economic sectors, accounting for approximately 39% of the country’s total export value and providing more than 36,000 direct employment opportunities.
In addition to providing numerous employment opportunities, mining activities also offer relatively high incomes, which is why Ghana is dotted with vibrant small-scale mines all over the country. However, illegal mining activities have caused severe negative impacts on both the environment and society. To address the issue of illegal mining, the Ghanaian government has taken a series of measures following the legalization of artisanal and small-scale mining. These measures include formalizing artisanal and small-scale mining operations, conducting frequent military “clearance” operations, and coordinating with large mining companies to establish alternative livelihood programs. Despite these efforts, the Ghanaian government has failed to curb the expansion of illegal artisanal mining. To this day, illegal artisanal mining remains rampant in Ghana and shows a trend of increasing year by year. The number of people engaged in illegal mining has surged from approximately 30,000 in 1995 to 1 million by 2006.
Views on illegal mining vary among different stakeholders. Decision-makers attribute illegal mining to “speculative behavior” and people’s desire to get rich overnight. Others blame the government’s incompetence, the lack of policies guiding mining activities, and weak enforcement. Yet the most widely accepted explanation is nationwide poverty. With few other employment opportunities available, local residents are driven to take the risky path of engaging in illegal mining.
    I. The Reasons Behind the Rapid Expansion of Illegal Mining  
1. Economic structural adjustment has led to an increase in the number of unemployed people.
One of the reasons for the rampant illegal mining is macroeconomic factors. Due to a series of economic restructuring programs implemented in Ghana, large-scale unemployment—including in the public sector—has occurred, prompting tens of thousands of people to join the ranks of illegal miners.
2. The expansion of mining investment has led to unemployment and homelessness.
The Ghanaian government has prioritized the expansion of large-scale mining activities, resulting in many people becoming homeless and further fueling the growth of artisanal and small-scale mining. Over the past two decades, Ghana has relaxed investment regulations to attract mining investments, leading to rapid growth in the sector. In 2006, 13.1% of Ghana’s land was covered by mining rights. By 2007, Ghana had nine large-scale mines in operation, and their construction and expansion triggered widespread community disruption. Recently, Phase I of Newmont’s South Ahafo project, which plans to build four mine pits, has forced 9,500 local farmers to leave their lands. These developments have exacerbated rural unemployment.
Highly mechanized large-scale mining activities cannot provide employment for all those who have lost their land. Moreover, mining operations also deprive local residents of other livelihood opportunities. For example, Wassa, aside from being a major mining area, is responsible for producing 44 percent of the country’s dense forest, 50 percent of its timber, and 39 percent of its cocoa beans. Approximately 250,000 people rely on agriculture for their livelihoods. Mining not only causes them to lose the land on which they depend for survival but also leaves them with virtually no means of sustaining their traditional way of life.
3. Rising prices of mineral products have attracted more people to participate in this activity.
Since gold prices began rising in 2001, thousands of displaced people have joined the ranks of artisanal and small-scale miners—most of whom are illegally mining on land held by large corporations. Moreover, communities in regions previously untouched by artisanal and small-scale mining have also begun engaging in illegal artisanal mining activities. These include communities such as Entroban in the eastern region, areas near the capital Tamale in the northern region, and the northwest outskirts of the capital Wa in the Upper West Region, farther to the west. The expansion of illegal artisanal mining poses significant policy and governance challenges for many developing countries, a situation that is particularly acute in Ghana.
4. The mineral rights transfer system restricts small-scale mining.
About 15 years ago, Ghanaian law did not permit the transfer of mining rights. However, in the amendment to the Minerals and Mining Act 2006 (Act No. 703), the Ghanaian government introduced a new provision allowing for the transfer of mining rights. Since then, the Minerals Commission—responsible for regulating artisanal and small-scale mining—has made some progress in facilitating the partial transfer of large-scale mining rights in the Eastern and Central regions. Yet, by comparison, virtually no progress has been made in “hotspot” areas. Commission officials have suggested that certain mining companies transfer the portions of their concessions that are unsuitable for large-scale mining to small-scale miners—for instance, many large mining concessions held by multinational mining companies include areas that are either unsuitable for large-scale mining or located in multi-agricultural zones or regions ideal for artisanal mining. On the other hand, multinational mining companies argue that rather than ceding these concession areas to artisanal and small-scale mining groups, it would be more advantageous for them to retain control over such land. Consequently, they are reluctant to transfer these lands and continue to hold onto them. As a result, in these regions, due to the lack of available land needed to establish farms that could provide sustainable livelihoods over the long term, people are left with virtually no land for farming, grazing, or fishing. Moreover, opportunities for legal small-scale mining activities are extremely limited. Faced with these constraints, people have little choice but to turn to illegal artisanal mining activities that encroach upon large-scale mining concessions. As a result, poor communities have ultimately been driven into the ranks of illegal artisanal miners.
5. Characteristics of Illegal Manual Mining Itself
Many former artisanal miners find themselves trapped in a vicious cycle of poverty. This situation primarily affects “mine owners” and those whose livelihoods depend on the economic returns derived from the volume of ore they extract. Meanwhile, the washers, diggers, and transport workers they hire earn only daily wages and have little incentive to concern themselves with the quantity of ore actually mined. As shown in Figure 1, the specific causes of their poverty include low productivity, lack of investment, limited mineral resources, and inappropriate technology. For most “mine owners,” their illegal status prevents them from accessing formal financing, forcing them to accept unfair financial terms offered by gold buyers—thus further deepening their poverty. Consequently, the claim that “in a given region, the growing number of artisanal and small-scale miners, coupled with insufficient human and social capital and limited, meager resources, leads to lower productivity and per capita income” is simply not accurate. In reality, what we see is the ongoing hardship and mounting debt faced by “mine owners”—as illustrated in Figure 1. This cycle represents the struggle of “mine owners,” and sometimes even “equipment owners,” who drive the sector’s creation of numerous employment opportunities. It also explains why “artisanal mining is an activity entirely driven by poverty—and one that has the capacity to sustain itself indefinitely.”
    II. All traditional intervention methods have ended in failure.  
1. Bring it under the track of rule-of-law management
Before May 1989, small-scale mining in Ghana was illegal. To better regulate small-scale mining, the Ghanaian government enacted the Small-Scale Gold Mining Act, the Mercury Act, and the Precious Minerals Sales Corporation Act, bringing artisanal and small-scale mining under the rule of law to reduce illegal mining activities and their associated negative impacts. The laws require small-scale miners to obtain licenses through a series of simplified procedures; applicants must be Ghanaian citizens aged 18 or older. Final approval of applications is granted by Accra. However, to streamline the registration process, the Minerals Commission has established several regional centers across the country, where officials at these regional centers conduct a preliminary assessment of applications.
However, due to the time-consuming application process and the need to pay several fees, small-scale miners are deterred from applying. Critics are also skeptical about these policies, as Ghana does not have much available land for miners to register on. Moreover, the government lacks proactive enforcement efforts, largely because its procurement system benefits from illegal artisanal mining activities. In 1989, in order to promote the development of small-scale gold and diamond mines, the Ghanaian government established the State-owned Precious Minerals Marketing Corporation under the Precious Minerals Sales Corporation Act, which was tasked with purchasing precious mineral products produced by these small-scale mines. The corporation employed over 700 purchasing agents, who did not distinguish between legal and illegal mining when buying gold. As a result of the proliferation of illegal artisanal mining, the government actually benefited—indeed, by 2003, artisanal and small-scale mining accounted for nearly 10 percent of the country’s total gold production. This situation could lead to conflicts between the Precious Minerals Marketing Corporation and policy-making bodies, since the Precious Minerals Marketing Corporation is contributing tax revenue to the national treasury, while policy-making agencies are grappling with the problems arising from illegal mining activities.
2. Mobilize military forces to intervene
Government officials and administrative officers from aid agencies often interpret the failure of artisanal miners to obtain permits as evidence of their defiance and deliberate evasion of the law. Moreover, the government believes that attracting foreign investment requires creating a stable investment environment—a stability that is precisely undermined by illegal mining activities. Consequently, in an effort to demonstrate its commitment to addressing these illegal practices, the government has even deployed military forces to “use force to drive out competing artisanal miners as well as local farmers or forestry workers.”
In sub-Saharan Africa, governments frequently deploy military forces to “clear” illegal mining activities. These clearance operations entail substantial financial expenditures, typically funded by mining companies. The biggest social issue facing these clearance efforts is the abuse of human rights—though, naturally, administrative officials from mining companies refuse to acknowledge this fact.
Perhaps because the Ghanaian government derives revenue from illegal gold mining, when it comes to fulfilling its promise to investors—to exclude illegal miners from company concessions—it merely periodically compels mining companies to provide funding for clearance operations. If officials believe these clearance efforts are effective, they may find it hard to understand why illegal mining remains so deeply entrenched. Despite the dangers and human rights abuses associated with artisanal and small-scale mining, artisanal miners often resume their activities—activities they were previously forced to abandon at gunpoint—after clearance operations have taken place.
3. Alternative Livelihood Projects
The Ghanaian government and several major mining companies have launched numerous alternative livelihood programs—primarily agriculture-based—to minimize illegal mining activities and improve living standards in rural areas. These programs aim to develop income-generating activities such as vegetable farming and snail farming. In addition, they provide assistance in areas like account keeping, day-to-day operational management, water resource management, environmental sanitation, and teacher training. Other major corporations in Ghana have also initiated similar projects. Although the efforts of large mining companies in implementing these alternative livelihood programs have been praised by the Ghanaian Mining Association and aid organizations, a recent study suggests that these initiatives have had little impact on addressing the issue of illegal mining. This is because, despite being promoted as “alternatives” to artisanal mining, in many cases these programs target nearby local communities rather than the illegal artisanal mining groups themselves. Government and corporate officials often assume that, once alternative livelihood activities become viable, everyone will willingly participate. In reality, among artisanal and small-scale mining communities—including many women, children, and elderly individuals—those who are given the opportunity to engage in farming or other occupations would likely abandon their grueling mining work. However, it seems unrealistic to expect adults who have spent most of their lives engaged in mining to suddenly give up their illegal artisanal mining activities for vegetable farming or snail farming.
Moreover, the latest evidence indicates that, due to the government’s perception that miners share similar backgrounds, technical skills, educational qualifications, and needs, there has been a one-sided understanding of artisanal and small-scale mining. As a result, the measures and approaches adopted have lost their effectiveness. Therefore, in order to reduce the volume of illegal mining, the government and aid organizations must first identify why people are unable to abandon this activity. This is crucial for developing targeted policy measures and explaining why conventional approaches have failed.
    III. A Case Study of Noyem in the Eastern Region  
Recent research conducted in Noyem, in eastern Ghana, has shed light on the deep-rooted causes behind the prevalence of artisanal and small-scale mining communities in the region. This community boasts a rich tradition of farming; 75 percent of its members live in the northern part of Birim, where Noyem is located, and have long relied on agriculture for their livelihoods. However, northern Birim is one of Ghana’s poorest regions, with the agricultural population accounting for over 70 percent of the total population. Moreover, the vast majority of these farmers have limited access to financial support and loan extensions. Rapid population growth has eroded the profitability of farming, while the arrival of large-scale mining operations in the area has led to a corresponding reduction in agricultural land. It is precisely for these reasons that approximately 30,000 informal artisanal miners are now operating within the 37.88-square-kilometer Noyem concession area.
Many of the “gang leaders” in this group are local residents, but most of the “hired laborers” come from northwestern Ghana—most of these individuals have prior experience in underground mining. A small number also hail from Burkina Faso, Niger, and Côte d'Ivoire; they specialize exclusively as diggers, washers, and transport workers. In addition, skilled and highly educated individuals from places such as Accra, Kumasi, and Takoradi continue to flock to the area. A significant portion of this group consists of unemployed people who have found work in Noyem. These individuals have settled in small towns near Noyem, giving rise to the development of related service industries. Despite interventions by local media, the government, and the military, these efforts have yielded little tangible result.
Illegal mining involves relatively high investment levels, and given the lack of regular financing channels, the high cost of capital often leaves illegal miners deeply in debt. They believe that the only way to quickly repay their debts is by continuing to mine. Under normal circumstances, it takes about five years for illegal miners to recoup their initial investments. The investment-recovery plan enjoys support not only from local chiefs, elders, and “empress dowagers,” but also from government agencies—the Joint Committee—as well as from grassroots departments. Moreover, a portion of the revenue generated by this initiative is allocated to community development. Although the entire process appears informal, it would be extremely difficult for these artisanal and small-scale mining groups—with their current level of investment—to simply give up their operations.
In addition, artisanal and small-scale mining can provide a range of job opportunities—from undignified labor to positions such as bookkeeping (Figure 3). Unlike monotonous agricultural work, which is often seen as an alternative livelihood, artisanal and small-scale mining employs people from diverse backgrounds. In Noiem, individuals can take on roles such as transport workers, packers, ore washers, and vendors (Table 1), all of whom earn a fixed salary. Moreover, the broad scope of financial activities makes financial management and bookkeeping skills particularly crucial. In Noiem, there is also a health and safety officer, a technician, and a secretary working for SpaceRock Mining, an illegal artisanal mining cooperative whose leadership is headed by the local chief.
The third deeply rooted reason for the persistence of illegal mining is its connection to powerful traditional leaders. In Ghana, chiefs play a crucial role in mining activities: they serve as supervisors and lead negotiations regarding compensation from mining companies and land transfers. Even when chiefs have no formal role in the approval of mining concessions, farmers still view them as symbols of authority and legitimacy. Consequently, in many “unregulated” areas where illegal artisanal mining is rampant, illegal mining operations—“approved” by the chiefs—pay a “protection fee,” thereby naturally obtaining a de facto “permit” to mine.
Another reason miners are reluctant to give up illegal mining is that many alternative options simply aren't suitable. Many company-sponsored projects are aimed not at miners themselves, but at community residents living near the mines—and these alternative livelihoods often yield lower incomes than artisanal mining. In Noiem, the absence of agricultural markets near the community has led residents to believe that artisanal and small-scale mining is the only activity capable of providing them with daily necessities.
Noah’s example reveals why Ghana’s illegal artisanal miners are reluctant to give up—even when faced with threats of force. To curb illegal mining, the government and relevant stakeholders must gain a deep understanding of the root causes underlying the existence of these illegal mining groups.
    IV. Conclusion
    Addressing the issue of illegal mining requires returning to the fundamental question: Why did miners initially turn to illegal activities in the first place? In Ghana, inadequate regulations and foreign investments in large-scale mining projects that harm rural livelihoods have made it extremely difficult for small-scale miners to obtain mining licenses. A possible solution would be to compel multinational corporations to relinquish the unproductive portions of their mining concessions; otherwise, poverty in rural areas will only continue to worsen. This is because the restrictions prevent artisanal miners from obtaining licenses, depriving them of access to the services that legitimate miners are entitled to—such as technical support, savings accounts, loans, and education. The difficulty in legalizing operations and the compulsion of miners to engage in illegal activities have led to further hardship: with virtually no formal financing channels available, gold buyers have increasingly turned into lenders, thereby exacerbating poverty in Ghanaian communities.
Under the current conditions, it is virtually impossible to simply give up mining sites. Since there are few alternative employment opportunities available, miners are compelled to continue engaging in illegal mining. Once large corporations relinquish their mining rights, alternative livelihood programs—initially designed to formalize artisanal and small-scale mining—should be re-established to benefit all artisanal miners. Even if agricultural sectors offer viable alternatives, not everyone would necessarily abandon artisanal and small-scale mining—for instance, some miners who have been working in Noiem for decades. Relinquishing the land and legalizing these miners would encourage more organized, environmentally sustainable activities. Research indicates that certain illegal miners—such as women, children, and the elderly—would give up illegal mining if viable alternative jobs were available. However, at present, these groups are often excluded from targeted livelihood programs.
The above analysis seeks to shed light on why the presence of illegal artisanal mining groups in Ghana is so deeply entrenched. The involvement of chiefs, substantial investments, abundant employment opportunities, and ineffective alternative livelihood programs are the fundamental reasons why illegal miners are reluctant to give up their illicit activities. Meanwhile, traditional approaches—such as the use of force and incentives for legitimate livelihoods—to curb illegal mining have proven ineffective, because those who support these practices have failed to adequately recognize the complexity of the illegal artisanal mining communities. ??? ??? References
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