Mining: Pressure mounts on govt to reinvest royalties in local communities

A growing campaign is calling on government to reinvest tax revenue from small-scale mining into the very communities affected by mining operations.

The Reinvest Royalties campaign is gaining traction as it advocates for these funds to be used for vital infrastructure projects such as schools, hospitals, and environmental protection in mining regions.

The campaign argues that by redirecting a portion of the royalties back to mining communities, the government can increase the number of those who mine legally and also help build local wealth and reduce dependency on “galamsey.”

Community-Driven Solutions to Combat Illegal Mining

The Reinvest Royalties campaign is working alongside community leaders in Bole and Amansie West, with support from local radio programming and social media initiatives to spread the message. According to the campaign team, the content on social media has received millions of engagements, with many messages supporting the idea of royalties.

The campaign is further backed by the UK Ghana programme in collaboration and a number of civil society organisations, including Natural Resource Governance Institute, KASA, CEDA, Institute For Energy Security, Arocha Ghana and SYND which have united under the banner of the Shared Prosperity Initiative. Together, they advocate for a shift in the approach to mining regulation, emphasising the need to work with mining communities to end illegal mining, rather than relying solely on enforcement.

According to Dr. Steve Manteaw, Technical Advisor for UKGGP, “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 further stated that, investing in these communities will not only boost local economies but also strengthen local development opportunities.

Environmental Protection Through Royalties

In addition to improving infrastructure, the campaign highlights that mining royalties can be channelled towards safeguarding the environment. These funds could cover the costs of geological surveys, ensuring more precise and less destructive mining practices. They could also support the development of less harmful extraction methods and fund the reclamation of sites once mines have closed.

Billions Lost Due to Illegal Mining

Ghana is losing billions of dollars each year due to illegal mining and gold smuggling. The Reinvest Royalties campaign believes that better regulation can keep this money within the country and support Ghanaian citizens. However, the campaign stresses that 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.

Better Regulation, More Royalties, Stronger Communities

The campaign insists that better mining regulation will result in more revenue for Ghana, and a portion of this should be reinvested in the communities where the mining occurs. This model, they argue, would create a positive cycle of royalties driving an increase in regulation, which in turn further increases the amount of royalties earned by communities.

By ensuring that mining communities benefit directly from the tax on regulated mining, the campaign states these communities will become less tolerant of illegal mining activities on their lands.

Reinvesting mining royalties in the communities where mining takes place will foster sustainable development, strengthen local economies, and help put an end to illegal mining once and for all.

The post Mining: Pressure mounts on govt to reinvest royalties in local communities first appeared on 3News.

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