Dr. Mahamudu Bawumia Outlines Mining Reforms and Gold-for-Oil Strategy Amid Security Tensions in Akyem Hemang

Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party (NPP), has held extensive consultations with the Ghana National Association of Small-Scale Miners (GNASSM) to detail a vision for sustainable mining and economic stabilization. During these engagements, Bawumia highlighted how unconventional strategies, specifically the Gold-for-Oil and Domestic Gold Purchase programs, were designed to navigate Ghana’s balance of payments crisis. These initiatives, born out of the economic pressures of the COVID-19 pandemic and the Russia-Ukraine war, aim to leverage the nation’s gold production to reduce reliance on foreign currency for fuel imports and strengthen the cedi. He noted that while International Monetary Fund (IMF) constraints limited direct foreign exchange interventions, the use of local gold has positioned Ghana as a pioneer in sovereign resource-backed financing.

The discussions with small-scale miners focused heavily on structural reforms intended to promote responsible mining practices while safeguarding the environment and local livelihoods. Bawumia emphasized the need for "local value addition" and job creation within the extractive sector, suggesting that the NPP’s policy framework would prioritize stakeholder input to build a more resilient industry. By purchasing local gold with cedis to build reserves, Bawumia argues the state can mitigate the dollar demand that frequently drives currency depreciation. This approach is intended to transform the small-scale mining sector from a source of environmental concern into a key pillar of national economic security.

However, these proposed reforms come at a time of heightened tension and reported violence within the mining sector. In the Eastern Region, the Narawa Mining Company has reported an alleged armed takeover of its concession in Akyem Hemang by individuals in military attire, resulting in the fatal shooting of a resident identified as Douglas Acheampong. While the company holds a valid lease until 2029, management claims their operations have been disrupted by intimidation and the destruction of infrastructure. The presence of armed groups has forced a withdrawal of workers, leading to urgent appeals for government intervention to restore order and legal clarity over land concessions.

Addressing the violence in Akyem Hemang, the Ministry of Lands and Natural Resources has moved to distance official security operatives from the incident. The Ministry’s Media Relations Officer, Paa Kwesi Schandorf, clarified that no personnel from the National Alternative Employment and Livelihood Programme (NAIMOS) were deployed to the area at the time of the shooting. The Ministry has warned of a growing trend of impersonators wearing military uniforms to carry out illegal activities, which undermines the credibility of state-led mining reforms. These conflicting reports underscore the significant challenges of reconciling the economic potential of small-scale mining with the persistent need for law enforcement and environmental protection.