Alhaji Inusah Fuseini , Minister of Lands and Natural Resources, has announced that government is exploring the possibility of establishing a gold village for the sale of Ghana made coinages, tola bars and assorted jewellery as part of efforts to maximise the small scale mining sector’s (SSM) contribution to national development.

He is confident that the project will provide a major boost for SSM which produced a total of 1.43million ounces of gold (34% of Ghana’s total gold production in 2012), and will go a long way to assist artisanal small-scale miners to operate in a technically, economically and environmentally sustainable manner.

Mr. Fuseini made the announcement at the Canadian Chamber of Commerce Ghana Power Breakfast meeting. The event brought together policy-makers and other key stakeholders to discuss pertinent issues on sustainable economic development of Ghana and Canada, particularly on how to effectively tackle the problem of illegal mining in Ghana.

He reiterated that government will build on positives garnered from the management of small-scale mining sector in the country, “to enhance the development of an efficient, modern and sustainable small-scale mining sector for both precious and industrial minerals”.

Highlighting details of interventions initiated by government to develop the SSM, the sector Minister explained that measures have been put in place to ensure that geological data on all minerals amenable to small-scale mining is made available to prospective miners.

Mr. Fuseini intimated that the licencing regime has also been re-engineered to make it easier for Ghanaians to secure mineral rights, while 100 areas totaling over 4,800km has been blocked for geological investigation of alluvial and primary deposits for small-scale miners. He revealed that the Jappa area has already been proven to be viable for SSM, and is being licenced to prospective small-scale miners.

“Illegal SSMs are being formalised to form co-operatives to be supported with requisite equipment and working capital. Guidelines on health and safety have been developed to train SSMs in environmentally-friendly processing methods, and District Mining Committees have also been established and adequately resourced to provide logistics and assist in the management of SSM activities through the provision of appropriate training programmes,” said the Minister.

Touching on the dire repercussions of illegal mining, the Minister emphasised that unsafe mining practices leading to rampant accidents and loss of lives, destruction of forest reserves as well as farmlands cum crops -- which in turn impacts negatively on food security. He said pollution of water-bodies with dangerous substances like mercury and cyanide results in myriad of health problems for local communities.