Monday, April 29th 07:28 PM IST

Ghana admits 95% of small-scale mining illegal

# Ghana gold  # Ghana gold investment  # gold output  

According to Ghana's small-scale mining industry, 23% of country's production came from small-scale mining.

ACCRA(BullionStreet): Africa's second largest gold producer Ghana admits that 95% of all small-scale mining in the country is illegal.

According to Ghana's small-scale mining industry, 23% of country's production came from small-scale mining.

They admit that influx of Chinese miners and their wealthy backers, who have dramatically increased small-scale mining through their investment in millions of dollars' worth of excavators and equipment, is causing environmental destruction and social conflict on an unprecedented scale.

Tensions in Ghana towards immigrants from China, which is Ghana's biggest trading partner, have led Ghana's president to reassure Chinese investors that the West African country remains keen to encourage economic cooperation.

But many blame Ghana's government for failing to prevent the destruction of large swaths of land for illegal mining.

Analysts said, in Ghana and elsewhere in Africa, small-scale mining is a strategic livelihood alternative for rural communities and it contributes tremendously to the local economy.

The government's precious minerals and marketing commission, which buys gold produced in Ghana through licensed agents, said it did not buy illegally mined gold.

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