Small scale mining in Ghana - 5 reasons to start this business

Small scale mining in Ghana - 5 reasons to start this business

Small scale mining is a very beneficial business in Ghana and anyone who starts it can really benefit from it financially. It has a lot of opportunities when done the right and legal way.

5 Advantages of starting small scale mining business in Ghana.

What is small scale mining?

Small scale mining refers to the practice of mining by individuals or communities using less man power and little technological equipment. The practice has been over the years taunted illegal by the Government due to the adverse impact it leaves on the environment. The miners also lack the proper financial back-up and awareness of the safe small-scale mining methods that won’t adverse the environment.

Small scale mining in Ghana has been listed as illegal due to lack of effective policies made by the Government. The government had recently lifted a ban on all illegal mining activities in Ghana. The government urged the miners to give them ample time to monitor the developments in the sector before implementing the five-year Multilateral Mining Integrated Project.

How to start small scale mining business

Small scale mining in Ghana has a lot of opportunities when done the right and legal way. Before you start mining activities in Ghana, you must first acquire a license and letter of permit by the Government or a related body. A review will be carried out to investigate the impact of the mining activity on the environment. Before receiving the permit, miners should also learn how to manage small scale mining in order to prevent losses and death.

5 Advantages of starting small scale mining business in Ghana.

A miner going about his mining business

If the impacts are not adverse, you will be required to pay reclamation bond which caters for care of the environment. You will also be issued with an ID to ensure all your mining activities can be traced. With this measures in place, the economic growth of the economy is set to skyrocket.

READ ALSO: List of mining companies in Ghana 2018

Advantages of small scale mining business in Ghana:

  • Creation of employment

With the current increase of unemployment cases in Ghana, small scale mining will really bridge the gap of unemployment by taking in skilled, semi-skilled and unskilled labor. This would reduce the high poverty levels experienced in remote areas where the minerals are found. This will in turn improve the living conditions of the locals.

  • Technological advancements

With recent catastrophes resulting to death of miners due to illegal mining activities, legalization of the activity will result in the development of safe technology. Most industries have adopted safer technologies that don’t cost much to ensure the safety of the miners. Although some of the heavy equipment used in mining is expensive for small scale miners, they can develop other affordable alternatives that won’t compromise the safety of the miners.

  • Increase in government revenue

The Government can take advantage of the mining sector to increase the amount of revenue allocated. This through the amount of taxes levied to the small-scale miners. Also, with the legalization of the activity the Government can also earn from the license fees and permits that are given to the miners. Mining sector is a common contributor to the economy of Ghana also through the royalties they earn from miners.

  • Development of related industries

Small scale mining produces raw materials that are utilized and manufactured by industries to produce final products. The introduction of these related industries has really spurned the growth of other remote areas. This has resulted in the creation of employment opportunities for many of the locals.

  • Earning of foreign exchange

Ghana has earned largely from foreign exchange due to the export of the minerals. This has stabilized the hash economic situation that rocked the country. The government will also buy directly from the miners eliminating middle men who take advantage of the miners. The minerals will be processed and exported to foreign countries where the demand is high.

READ ALSO: How to start small scale mining in Ghana even if you have little experience in the field.

Also, as an addition to all these benefits, the Government will be able to protect the environment from destruction due to illegal activities. The reclamation bond will be used in reducing the impacts caused onto the environment. This will assure gains for all stakeholders including the Government, small scale miners and the environment at large.

5 Advantages of starting small scale mining business in Ghana.

Source: Yen.com.gh

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