Cracking Down or Cutting Off? The Revocation of 278 Small-Scale Mining Licences and Its Implications for Ghana’s ASM Sector

On 23rd October 2025, the Government of Ghana took a stark and decisive step: it revoked 278 small-scale mining (ASM) licences across the country. Announced by Hon. Emmanuel Armah‑Kofi Buah, the Minister of Lands and Natural Resources, the move forms part of a broader crackdown on unregulated mining operations and environmental degradation in Ghana’s ASM sector. (primenewsghana.com)

The Background: Understanding the Review

The revocation decision builds on a licensing audit that commenced in early 2025. A special committee reviewed 1,278 small-scale mining licences, finding 316 compliant and 962 flagged for irregularities such as expired permits, missing documentation and environmental non-compliance. (CitiNewsroom.com)

By October, the government announced 278 licences had been officially cancelled for breaches such as operating without a valid permit or failing to meet regulatory obligations. (MyJoyOnline)

The licence purge reflects deeper structural issues in the ASM sector. For decades, Ghana has grappled with informal mining, widely known as galamsey, which accounts for an estimated 35% of national gold output yet often operates outside standard regulation. (Ghanaian Watch)

The Rationale: Why the Revocation?

The Ministry says the action was necessary to restore order and protect Ghana’s environment and communities. Key justifications include:

  • Expired or irregular licences: Many operators allegedly continued mining after permit expiry or without environmental permits.
  • Environmental risk: Independent studies found serious degradation in ASM zones — including mercury contamination, silted rivers, and loss of community land. (Ghanaian Watch)
  • Levelling the playing field: By revoking non-compliant licences, the government signals that legitimate miners can operate transparently and benefit from clearer governance frameworks.

In a March 2025 policy statement, the Ministry declared that all licences issued between 7th December 2024- 6th January 2025 would be revoked for lacking due process, underscoring a zero-tolerance tone. (mlnr.gov.gh)

Implications for the ASM Sector

1. Environmental and Regulatory Gains

On the positive side, the clean-up is a step toward more sustainable ASM practices. It may curb the worst abuses—especially land and water degradation—and encourage more formal operations with better oversight and accountability.

2. Livelihood and Community Risk

Conversely, the revocation carries significant social risk. ASM remains a key livelihood source in rural Ghana, employing thousands. Sudden licence loss without adequate transition support could disrupt income, intensify poverty and possibly fuel illegal mining out of desperation.

3. Investor Confidence and Sector Image

Improved governance can attract more formal investment into small-scale mining. International mining firms and downstream processors tend to prefer jurisdictions where environmental and licensing risk is lower. The revocations may enhance Ghana’s reputation—if implemented fairly and transparently.

4. Legal and Political Hazards

Observers have sounded caution: some engineers and legal experts argue that due-process concerns over revocations could trigger lawsuits. One mining engineer warned of “costly legal and political consequences” if licence-holders are not afforded fair notice or transparent criteria. (Ghanamma)

What Comes Next: Formalisation & Rehabilitation

To maximise the positive impact, the government must now move from enforcement to support. Key priority areas include:

  • Support for license holders: Helping miners transition from informal to formal operations—through training, financing, technical assistance, and environmental remediation.
  • Roll-out of new licensing frameworks: The audit of small-scale licences is running in parallel with large-scale reforms. Ghana is reportedly concluding a mining-law overhaul that will shorten licence durations, eliminate automatic renewals and require local community revenue-sharing. (Reuters)
  • Focus on rehabilitation and mine-closure: Revocation must be paired with remediation of degraded land, restoration of waterways and protection of communities impacted by illegal operations.
  • Community engagement: Ensuring local stakeholders—traditional authorities, land-owners, local governments—are part of the process can reduce conflict, enhance compliance and improve legitimacy of enforcement.

Balancing Act: Enforcement vs Inclusivity

The move to cancel 278 licences is a strong signal—but whether it becomes a turning point depends on execution. Without the inclusion of local miners and robust support mechanisms, enforcement could push miners into more clandestine operations. The ideal outcome is a sector where small-scale miners are legitimate, credible contributors to the national economy, not informal actors outside the law.

A Transformative Moment for Ghana’s ASM Sector

Ghana’s decision marks a critical juncture. It suggests that the country, long associated with informal mining challenges, may now be ready to push the ASM sector toward formalisation, accountability and sustainability. If realised effectively, this could usher in a new era: one of regulated small-scale mining with better environmental outcomes, stronger community benefits and more stable investment.

But the new path will not be easy. The government must ensure fairness and transparency in revocations, invest in capacity building, and strike a balance between environmental protection and socioeconomic realities of rural communities.

In that sense, the revocation of 278 licences is less an end than a beginning—the beginning of a possible transformation of Ghana’s mining landscape from one of unregulated extraction to one of accountable and sustainable development.

References

[1] “Lands Minister revokes 278 small-scale mining licenses over regulatory breaches,” MyJoyOnline, 23 Oct. 2025. [Online]. Available: https://www.myjoyonline.com/lands-minister-revokes-278-small-scale-mining-licenses-over-regulatory-breaches/ (MyJoyOnline)
[2] “See list of 278 small-scale mining licences revoked by Minerals Commission,” Webbers Choice, 24 Oct. 2025. [Online]. Available: https://www.ghanawebbers.com/GhanaHomePage/NewsArchive/See-list-of-278-small-scale-mining-licences-revoked-by-Minerals-Commission-2094518 (Ghana Webbers)
[3] “Prove legitimacy by September 1 or lose licence – Lands Minister to small-scale miners,” CitiNewsroom, 29 Aug. 2025. [Online]. Available: https://citinewsroom.com/2025/08/prove-legitimacy-by-september-1-or-lose-licence-lands-minister-to-small-scale-miners/ (CitiNewsroom.com)
[4] “Gov’t revokes all small-scale mining licences issued after December 7,” Prime News Ghana, 19 Mar. 2025. [Online]. Available: https://www.primenewsghana.com/general-news/gov-t-revokes-all-small-scale-mining-licences-issued-after-dec-7.html (primenewsghana.com)
[5] “Engineer warns of legal and political risks in revocation of 278 mining licences,” Ghana MMA, 25 Oct. 2025. [Online]. Available: https://www.ghanamma.com/2025/10/25/engineer-warns-of-legal-and-political-risks-in-revocation-of-278-mining-licenses/ (Ghanamma)

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