News / Africa

    High Gold Prices Bring Chinese into Ghana's Mines

    Artisanal miners dig for gold in an open-pit concession near Dunkwa, western Ghana, February 15, 2011.
    Artisanal miners dig for gold in an open-pit concession near Dunkwa, western Ghana, February 15, 2011.
    Joana Mantey
    ACCRA — A recent influx of Chinese nationals into Ghana’s gold mining sector is raising concerns among policy makers and the country's citizens.  This is because the Chinese are engaged in small-scale mining, an area that in theory, is solely preserved for Ghanaians.  Most of them are also apparently working without a permit and on occasion extend their operations into some restricted areas, devastating the land in the process.

    Investments

    Ghana was known as the Gold Coast before gaining independence in 1957.  Since then the mineral has been one of the backbones of the nation’s economy.  So why this sudden interest in Ghana by Chinese small-scale miners?  Ahmed Nantogma is director of public affairs at Ghana’s Chamber of Mines. He said the main reason is the rise in the price of gold on the world market.

    From $200 an ounce about 10 years ago, gold is now trading at more than $1,500 an ounce.  Therefore, the Chinese are assured of good returns on their investments.

    “You go where your product is," said Nantogma. "So that is why they are not going to say, Congo or Liberia, they come to Ghana.  And they know they can take advantage of the situation and hide somewhere in a bush and mine illegally without paying taxes.”

    Land, community disruptions

    On occasion, conflict situations erupt between residents in mining communities and the Chinese miners.

    “The [Chinese] leave the land devastated, sometimes they do not even consult the people before they go there.  The people also feel that they own the resource.  They own the land and [Chinese] have come to take the gold away,” Nantogma explains.

    There are social factors at work too.

    Richard is a Ghanaian businessman.  He said the coming of the Chinese has raised rent prices for guest houses and hostels in some mining towns, such as Dunkwa-On-Offin in Ghana's Central region.  He said access to such accomodations is becoming difficult for Ghanians because most Chinese miners pay up front for months on end.

    Added to this is the devastating effect of illegal mining on the land.  Isaac Abraham is a Ghanaian worker. He said farmlands are destroyed and water bodies are polluted as a result of illegal mining. “Sometimes they dig the place and when they find no mineral they just move to another place just like that.  But with the regulated mining companies this does not happen,” he said.

    Kofi Tetteh is an assistant manager of small-scale mining at the Minerals Commission of Ghana.  He said licenses have been granted to about 1,000 small scale miners in Ghana.  He says many of these Ghanaians sublet their licenses to Chinese miners. “Behind every illegal Chinese operator, we are looking at an opinion leader, a chief, a farmer, a land owner or somebody who then sublets it to the Chinese for these illegal activities,” he said.

    Illegal mining

    The Ghana Immigration Service says there are about 3,000 Chinese in Ghana with resident permits.  However, the number of Chinese engaged in illegal gold mining activities is unclear, since none of them have been registered.  Under the Minerals and Mining Law of Ghana, people wishing to engage in any form of mining are required to obtain the needed license.

    Tetteh said enforcing the law on illegal mining is a problem in Ghana. “At times we apprehend these Chinese.  We send them to the law courts and the same law is used to set them free,” Tetteh added.

    Tetteh said the Minerals Commission is working to reform the law in order for stiffer punishments to apply not only to the Chinese but all other categories of people who may flout the law.

    You May Like

    Video Democrats Clinton, Kaine Offer 'Very Different Vision' Than Trump

    In a jab at Trump, Clinton says her team wants to 'build bridges, not walls'; Obama Hails Kaine's record; Trump calls Kaine a 'job-killer'

    Turkey Wants Pakistan to Close Down institutions, Businesses Linked to Gulen

    Thousands of Pakistani students are enrolled in Gulen's commercial network of around two dozen institutions operating in Pakistan for over two decades

    AU Passport A Work in Progress

    Who will get the passport and what the benefits are still need to be worked out

    This forum has been closed.
    Comment Sorting
    Comments
         
    by: concern.citizen
    August 29, 2012 10:50 AM
    The next thing I anticipate after this report is that the CHINESE will claim Ghana or Dunkwa to be a part of their territory, GHANIANS I believe you need to assert your rights before it will be taken away from you.China is already a huge territory. Your land can sufficiently provide for your basic needs...
    In Response

    by: John from: German
    August 29, 2012 10:55 PM
    Stupid idea. Chinese is not a threat ,most of them affected by peaceful Buddhism and Confucianism. What you should defend and fear is Islam,the true territory to the world, exist on murder and violence. Look at Holand,France,British...look at Europe now, Islam just like plague spreading everywhere. They will dominate Europe by the huge child birth and wipe all non-Islam out of this land,once it done, the next target will be Africa and America.

    by: Optimist
    August 29, 2012 10:28 AM
    Chinese are coming to Africa to get what's beneath the blessed African ground. If they come to a democratic country then we have no problem, because the democratic values of the nation will protect the individual citizen. The only problem is, sometimes when a Chinese company enters a non-democratic African country and they see lasting business potential there, they start protecting the regime to continue to oppress the people, and that becomes a source of conflict between us and the Chinese company doing business at the expense of the rights of the indigenous citizen.

    For instance, a Chinese company is working on building a dam in Ethiopia where over two million indigenous populace will seriously be affected as a result of the dam. Outside of Ethiopia some three more million people will be affected as a result. In addition to such violations, the Chinese are helping the Ethiopian regime to spread anti-democracy fear via eavesdropping apparatus. This is making telephone and internet communications out of reach, essentially hampering the ability for Ethiopians to organize and help citizens who are being affected by policies.

    By the Numbers

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movementi
    X
    July 22, 2016 11:49 AM
    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Poor Residents in Cleveland Not Feeling High Hopes of Republican Convention

    With the Republican Party's National Convention underway in Cleveland, Ohio, delegates and visitors are gathered in the host city's downtown - waiting to hear from the party's presidential candidate, Donald Trump. But a few kilometers from the convention's venue, Cleveland's poorest residents are not convinced Trump or his policies will make a difference in their lives. VOA's Ramon Taylor spoke with some of these residents as well as some of the Republican delegates and filed this report.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video With Yosemite as Backdrop, Obama Praises National Parks

    Last month, President Barack Obama and his family visited some of the most beautiful national parks in the U.S. Using the majestic backdrop of a towering waterfall in California's Yosemite National Park, Obama praised the national park system which celebrates its 100th anniversary this year. He talked about the importance of America’s “national treasures” and the need to protect them from climate change and other threats. VOA’s Julie Taboh reports.
    Video

    Video Counter-Islamic State Coalition Plots Next Steps

    As momentum shifts against Islamic State in Iraq, discussions are taking place about the next steps for driving the terrorist group from its final strongholds. Secretary of State John Kerry is hosting a counter-IS meeting at the State Department, a day after defense ministers from more than 30 countries reviewed and agreed upon a course of action. VOA Pentagon correspondent Carla Babb reports.
    Video

    Video Russia's Participation at Brazil Olympic Games Still In Question

    The International Olympic Committee has delayed a decision on whether to ban all Russian teams from competing in next month's Olympic Games in Brazil over allegations of an elaborate doping scheme. The World Anti-Doping Agency recently released an independent report alleging widespread doping by Russian athletes at the 2014 Winter Olympics in Sochi. So far, only Russian track and field athletes have been barred from the Summer Games in Brazil. VOA's Zlatica Hoke has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.
    Video

    Video Millennials Could Determine Who Wins Race to White House

    With only four months to go until Americans elect a new president, one group of voters is getting a lot more attention these days: those ages 18 to 35, a generation known as millennials. It’s a demographic that some analysts say could have the power to decide the 2016 election. But a lot depends on whether they actually turn out to vote. VOA’s Alexa Lamanna reports.

    Special Report

    Adrift The Invisible African Diaspora