A movement calling on the government to reinvest tax revenue from small-scale mining back into local communities as a solution to combat illegal mining (galamsey) and drive sustainable development in mining regions, is gaining traction.

The ‘Reinvest Royalties’ campaign, launched with support from civil society groups – particularly the UK-Ghana Gold Programme (UKGGP), and community leaders, is gaining momentum as it advocates for redirecting a portion of mining royalties into areas most impacted by mining activities.

Campaigners argue that reinvesting these funds could significantly improve local infrastructure, from schools and hospitals to environmental protection measures, all while encouraging legal mining practices.

Dr. Steve Manteaw, Technical Advisor for the UKGGP emphasised the importance of giving mining communities a financial stake in the mining sector.

“The campaign’s central message is clear: If we want to end galamsey, we must empower our mining communities. By giving communities a stake in the royalties generated from mining, they will have a vested interest in welcoming regulated mining operations while rejecting illegal ones,” he said.

Advocates of the initiative believe this approach would foster stronger ties between communities and the formal mining industry, encouraging those involved in illegal operations to turn toward regulated mining practices.

Ghana loses billions of dollars annually due to illegal mining and gold smuggling, severely impacting the nation’s economic prospects, with the Economic and Organised Crime Office (EOCO) estimating that as much as US$1.1 billion was lost between 2019 and 2021.

Promoters of the ‘Reinvest Royalties’ campaign believe this revenue could be retained within the country if better regulatory measures are in place and communities are given a direct financial stake in mining activities.

However, the campaign is clear in its message that simply enforcing regulations will not solve the problem. The movement stresses that communities must see tangible benefits from legal mining operations if they are to support regulation.

“Forced regulation is not the solution; instead, the government must create an environment where mining communities actively seek regulation by ensuring they benefit from it,” a statement on the matter read in part.

Empowering communities

At the heart of the campaign is the belief that community-driven solutions are more effective in ending illegal mining. By reinvesting a portion of mining royalties, the government can empower local economies, ultimately reducing the need for residents to rely on unregulated mining activities.

The initiative has already garnered considerable support in key mining areas such as Bole and Amansie West, where local radio programmes and social media campaigns have sparked conversations on the topic.

The campaign has also seen backing from international and local organizations, including the Natural Resource Governance Institute, KASA, CEDA, and the Institute for Energy Security, among others.

Collectively, these organizations have come together under the banner of the Shared Prosperity Initiative, pushing for a more community-centric approach to mining regulation.

The involvement of these groups underscores the widespread recognition that more sustainable, locally-driven solutions are needed to address illegal mining and its detrimental effects on local economies and the environment.

Collaboration

Advocates of the campaign argue that a collaborative, rather than punitive, approach to mining regulation is necessary to foster long-term change.

This vision is not only about curbing illegal activities but also about driving development in the regions that need it most. Supporters of the campaign believe that when mining communities see direct benefits from royalties, such as infrastructure improvements and economic opportunities, they will be more likely to support regulatory efforts.

Another key component of the Reinvest Royalties campaign is environmental protection. Advocates are calling for mining royalties to be allocated to efforts aimed at minimizing the environmental impact of mining activities. The funds could be used for geological surveys, the development of less harmful extraction methods, and the reclamation of lands once mining operations have ceased.

These efforts would ensure that the environment is protected even as the mining sector grows, further contributing to the sustainable development of mining communities.

At the core of the campaign’s strategy is the belief that reinvesting in mining communities will create a ‘positive cycle’ of increased royalties driving improved regulation, which, in turn, will generate more revenue for the country.

By ensuring that mining communities benefit directly from the royalties, the campaign argues that these communities will become less tolerant of illegal mining activities.

“Investing in these communities will not only boost local economies but also strengthen local development opportunities,” Dr. Manteaw added.

The Reinvest Royalties campaign hopes to foster a future where mining is both a source of economic growth and a driver of sustainable community development. By creating a more inclusive and beneficial system, the campaign aims to reduce the negative impacts of illegal mining while encouraging communities to embrace legal, regulated mining practices.