Artisanal and small-scale mining formalization challenges in Ghana: Explaining grassroots perspectives

Abstract

Ghana legally recognizes ASM as a legitimate livelihood source with formalization blueprints for operators. However, the regulation of ASM activities in Ghana can largely be described as unsuccessful. Evidence shows that more than 85% of small-scale mining operations still occur in the informal and illegal sector of the economy outside the purview of state regulation. This paper examines grassroots perspectives on why despite existing formalization initiatives, miners continue to operate ‘illegally’. It finds that, first, the transient and migratory character of local mines do not synchronize with the complex and lengthy bureaucratic licensing regime currently in place, defeating any economic logic for illegal miners wanting to formalize. Second, the regulatory regime takes on a generic formalization framework for all of the country's diverse ASM operations and fails to link the various types of the sector's operations to appropriate levels and forms of control, neglecting the compliance capacity of the sector's rudimentary and subsistence operators. Greater institutional support for miners is recommended to build their capacity and credits support for their operations to improve the longevity of local mines. Also, urgent policy reforms are needed to enhance a multi-tier reclassification of Ghana's ASM sector to create the necessary conditions for compliance and accountability from all miners.