ghana: poverty and social impact analysis of the artisanal and small scale mining sector
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Ghana: Poverty and Social Impact Analysis of the Artisanal and Small Scale Mining Sector. Kristina Svensson World Bank Sustainable Energy Division - Oil, Gas, and Mining Department PSIA Learning Days, March 14, 2013. Why artisanal and small scale mining?. - PowerPoint PPT PresentationTRANSCRIPT
Ghana: Poverty and Social Impact Analysisof the Artisanal and Small Scale Mining Sector
Kristina SvenssonWorld Bank Sustainable Energy Division - Oil, Gas, and Mining DepartmentPSIA Learning Days, March 14, 2013
Why artisanal and small scale mining?
Large-scale mining company influx during 1990-2000s;
500,000 to 1 million miners, majority illegal on large scale concessions;
Today small-scale mining is 28% of total Ghana gold production;
Negative social and environmental impacts, land conflicts;
Increasingly mechanized and with foreign investments (Chinese).
PSIA Objectives1. Inform Government of Ghana (GoG) policies
and practices related to ASM by producing new data on the sector, and new analysis;
2. Inform the preparation of the next phase of Bank support for NREG, specially with regards to mining sector activities;
3. To facilitate the creation of a platform for dialogue and consultations among a range of ASM stakeholders
To assess the poverty, welfare, and social impact of the Small-Scale Gold Mining Law (1989) ex-post, and do an ex-ante assessment of the revised Draft Mining Policy
Methodology
Limited primary data: Desk- and field study (Japa in Wassa Amenfi East District)
Limited use of “counter-factual”◦ Lack of comparable countries◦ Problem with national data
Participatory space and dialogue
Political economy
Transmission channels for tracing impact of policy reforms:◦ Employment◦ Prices ◦ Access ◦ Assets ◦ Transfers◦ Taxes and authority
Key PSIA findings
1. Artisanal and small scale mining today in Ghana can be a wealth creating sector - not necessarily “poverty driven” or “get-rich-quick” phenomena;
2. Current licensing and access to land regimes are not working for majority of artisanal and small-scale miners, and leads to illegality, conflicts, and human rights abuses;
3. There are important regional differences within Ghana in terms of how well existing ASM policies work.
Livelihood matrix for typical small-scale gold “pit” (Japa, 2012)
Productive chain activity
Number of workers
Gender (adult unless stated)
Average Income (Cedis)
Hours worked
Excavating 1 Male 1,000/month 8 hours/dayShovelling/ feeding grinder
21 Male 200/week* 90 hours/week
Washing on site 7 Male 300/week** VariesTransport concentrate off site in cars
1 Male 100/week** Varies
Second round processing of concentrate off site
1 Female (teenage women and older rather than young
girls)
N/K 4 hours/week
Fetching and reprocessing “tailings”
14 Male (boys) Independent operators
[55 per ‘blade’(0.8 grammes)]
Varies
Off site cooking and delivery of “chop” on site
2 Female Independent service provider
(Approx 30/week)
Varies
On site cleaning of grinders with knives
? Female N/K Varies
On site Ata Buata maintenance work (cleaning the washboards)
? Female N/K Varies
Distribution of wealth in small-scale mining community of Japa
Social mobility CharacteristicsVery Rich(12 households)
Luxurious carsOwn excavatorsMansionsLots of moneyLandowner
Rich(50-60 households)
Own prosperous small business (e.g. beer bar)Some buy cocoa farms (up to 10 acres)Considerable amount of cash flowOwn land and have their own plots (although not as rich as other land)Rent an excavatorThey have sponsors
Semi-rich(500+ households)
Accumulate money and keep it in the bankBuy water pumps + tube for hiringWork in the pitsYoung men/’youth’Different types of housesPublic standpipe and filtered waterLarge cocoa farmersSmall shop owners
Poor(500+ households)
No access to galamsey landNothing to do with galamseySalaried workers, civil servantsYou can’t build your own houseLive in mud houseSmall subsistence cocoa farmsYoung girls (15-18) with babies but no fatherWidows
Licensing and Access to Land
Illegalityconflict human rights
abuses
Policy focus to attract
large scale mining
investments
Lack of access to
geologically suitable land for
ASM
Lack of land-use planning
taking ASM into
account
Expensive and
complicated licensing procedure
Regional mining frontiers
Proposed policy approaches
PSIA Findings Proposed policy approach1. ASM can be a wealth-creating sector, but currently treated as poverty-driven.
-Fiscal policy/taxation of ASMs;-Communication to change mind-set and debate;-Continued broader regular dialogues with all stakeholders.
2. Regional differences in policy effectiveness – Designated area approach not working in regions with LSM.
Dynamic approach to designated area approach and adapting support services
3. Licensing and access to land not working for majority of ASM -leading to illegality and human rights abuses.
-Categorization of miners in regulations;-Licensing regime needs to be decentralized and simplified;-Access to productive land for ASM prioritized;-Dialogue with large scale mining companies, and other institutions
What worked?Despite initial weak
government participation, the PSIA helped to open up policy space;
“Social inclusion” on agenda, but more focus on sector reforms;
Strong engagement with other stakeholders (miners, NGOs, large scale companies);
Part of series of programs and activities – would not have worked as a one-off activity.
Lessons learnedDifficult policy environment – strong
political preference to focus on continuing to attract and retain large scale mining;
More primary data needed to show economic impact of ASM in communities;
Stakeholder engagement useful, but more needed with NGOs and communities and chiefs/stools needed;
Political economy analysis useful in showing political power of ASM.
Thanks for your attention!