As part of efforts to crack down on illegal mining, the Minerals Commission plans to install tracking devices on 4,000 excavators and earthmoving equipment. Currently, 75 excavators are being monitored via tracking devices from a control room at the commission.
According to the Minister of Lands and Natural Resources, Samuel Abu Jinapor, the devices will be installed later this year with the ultimate goal of ensuring that no excavator is used for illegal mining or trespasses on assigned concessions. The commission established the Mine Repository and Tracking Control Centre in December 2022 to monitor the tracking and movement of excavators in mining concessions, as well as trace trucks carrying explosives, speed boats used by river wardens, and quarries. The exercise is in line with the Minerals and Mining (Mineral Operations – Tracking of Earthmoving and Mining Equipment) Regulations, 2020 (L.I. 2404).
Mr Jinapor stated that after successfully tracking 75 excavators for the past three months, the commission is better placed to bring on board 4,000 excavators and earthmoving equipment before the end of the year. He added that the tracking of excavators is one of the most effective strategies to curb illegal mining and to reposition the small-scale mining sector as a sustainable source of livelihood for local people.
To support this goal, the government reduced withholding tax on unprocessed gold by small-scale miners from 3% to 1.5%. As a result, gold exports from small-scale mining increased from 3,429.91kg in 2021 to 22,158.25kg in 2022.
Despite progress made, Mr Jinapor noted that more work remains to be done to curb illegal mining. To promote local content and participation, the commission increased the items on the local procurement list of goods and services reserved for citizens from 29 to 50, and increased the provision of financial, insurance, and reinsurance services reserved for citizens from 20% to a minimum of 60%.
This move is expected to ensure the retention of $3 billion in the country annually. Discussions are also ongoing with Rand Refinery of South Africa, an LBMA referee, to secure LBMA certification to facilitate the export and trade of refined gold on the international market.
Mr Jinapor also announced plans to establish a Gold Souk, a marketplace for manufacturing and marketing gold articles, in the country. Additionally, the Geological Survey Authority has intensified limestone exploration activities in the Mamprusi West District to develop mines to feed the cement industry. Over 3,000 acres of land have been identified as suitable for clinker production.
The Authority also identified and evaluated over 1,275 tonnes of clay resources at Assin Fosu and its environs in the Assin North and Central districts of the Central Region, suitable for the production of high-quality assay crucibles, bricks, tiles, and electrical porcelain.
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