Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

An institutional weakness? – The participation of Chinese miners in Ghana’s artisanal and small-scale gold mining (ASGM) sector.

Agbesinyale, Enyam Joel LU (2023) SIMZ31 20231
Graduate School
Abstract
This thesis addresses the ongoing debate on the involvement of Chinese nationals in Ghana's
artisanal and small-scale gold mining (ASGM) sector. Despite the Minerals and Mining Law,
Act 703 (2006) prohibiting foreigners from engaging in ASGM, it is reported that about 50,000
Chinese nationals have migrated to rural Ghana to engage in illegal mining activities. This has
caught the attention of the public and raised concerns about the regulation of the sector. The
thesis investigates the factors that enable Chinese participation in Ghana's ASGM sector, the
challenges associated with its regulation, and its impact on rural transformation in Adum
Banso, Western Region, Ghana. The study adopts qualitative methods, including... (More)
This thesis addresses the ongoing debate on the involvement of Chinese nationals in Ghana's
artisanal and small-scale gold mining (ASGM) sector. Despite the Minerals and Mining Law,
Act 703 (2006) prohibiting foreigners from engaging in ASGM, it is reported that about 50,000
Chinese nationals have migrated to rural Ghana to engage in illegal mining activities. This has
caught the attention of the public and raised concerns about the regulation of the sector. The
thesis investigates the factors that enable Chinese participation in Ghana's ASGM sector, the
challenges associated with its regulation, and its impact on rural transformation in Adum
Banso, Western Region, Ghana. The study adopts qualitative methods, including semistructured
interviews, focus group discussions, and field visits, to obtain primary and secondary
data. The findings indicate that local miners in Ghana seek to mechanise and intensify mining
operations but lack the financial and technical capacity to do so. Consequently, they collaborate
with Chinese miners by requesting investments or technical training. This has led to the
emergence of a fast-developing mechanised and intensified "medium scale" mining sub-sector,
which falls outside the institutional and regulatory framework of Ghana's mining sector. The
state's efforts to address the issues associated with this "medium scale" sector have resulted in
the institutionalisation of stopgap measures, such as ad-hoc military operations to flush out
foreigners from the sector. However, these measures are dependent on committees that lack the
historical working relationships and procedures necessary to navigate the phenomenon
efficiently. As a result, state actors, local miners, and Chinese miners find themselves in a "grey
area". Moreover, the thesis makes a significant discovery regarding the role of gambling
activities and infrastructure, particularly casinos, in the gold trade within rural mining
communities like Adum Banso. It reveals that casinos play a crucial role in illicit financial
flows (buying, selling, and smuggling of gold), establishing an elaborate "financial system"
established by Chinese entrepreneurs. The thesis concludes that the state must establish
responsive institutions and structures that can efficiently navigate fast-developing issues like
the emergence of a medium-scale mining sector fuelled by foreign participation and
investments. Institutions must resonate with the reality of society to effect desirable change;
otherwise, opportunistic individuals may continue to exploit such weaknesses. (Less)
Please use this url to cite or link to this publication:
author
Agbesinyale, Enyam Joel LU
supervisor
organization
course
SIMZ31 20231
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Chinese participation, ASGM, Institutional weakness, Rural transformation, Ghana
language
English
id
9123600
date added to LUP
2023-06-21 14:16:11
date last changed
2023-06-21 14:16:11
@misc{9123600,
  abstract     = {{This thesis addresses the ongoing debate on the involvement of Chinese nationals in Ghana's
artisanal and small-scale gold mining (ASGM) sector. Despite the Minerals and Mining Law,
Act 703 (2006) prohibiting foreigners from engaging in ASGM, it is reported that about 50,000
Chinese nationals have migrated to rural Ghana to engage in illegal mining activities. This has
caught the attention of the public and raised concerns about the regulation of the sector. The
thesis investigates the factors that enable Chinese participation in Ghana's ASGM sector, the
challenges associated with its regulation, and its impact on rural transformation in Adum
Banso, Western Region, Ghana. The study adopts qualitative methods, including semistructured
interviews, focus group discussions, and field visits, to obtain primary and secondary
data. The findings indicate that local miners in Ghana seek to mechanise and intensify mining
operations but lack the financial and technical capacity to do so. Consequently, they collaborate
with Chinese miners by requesting investments or technical training. This has led to the
emergence of a fast-developing mechanised and intensified "medium scale" mining sub-sector,
which falls outside the institutional and regulatory framework of Ghana's mining sector. The
state's efforts to address the issues associated with this "medium scale" sector have resulted in
the institutionalisation of stopgap measures, such as ad-hoc military operations to flush out
foreigners from the sector. However, these measures are dependent on committees that lack the
historical working relationships and procedures necessary to navigate the phenomenon
efficiently. As a result, state actors, local miners, and Chinese miners find themselves in a "grey
area". Moreover, the thesis makes a significant discovery regarding the role of gambling
activities and infrastructure, particularly casinos, in the gold trade within rural mining
communities like Adum Banso. It reveals that casinos play a crucial role in illicit financial
flows (buying, selling, and smuggling of gold), establishing an elaborate "financial system"
established by Chinese entrepreneurs. The thesis concludes that the state must establish
responsive institutions and structures that can efficiently navigate fast-developing issues like
the emergence of a medium-scale mining sector fuelled by foreign participation and
investments. Institutions must resonate with the reality of society to effect desirable change;
otherwise, opportunistic individuals may continue to exploit such weaknesses.}},
  author       = {{Agbesinyale, Enyam Joel}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{An institutional weakness? – The participation of Chinese miners in Ghana’s artisanal and small-scale gold mining (ASGM) sector.}},
  year         = {{2023}},
}