Gold holds a prominent place in Tarkwa, evident in the lush forests surrounding it and beneath the feet of those traversing Ghana’s foremost mining town. It serves as the foundation of the local economy. Enormous craters dotting the landscape reveal efforts to illicitly harvest this prized metal, while a polluted river encircling the town highlights the fallout from the increase in semi-industrial mining operations.
The environmental havoc has ignited considerable protests in Accra, advocating for an outright ban on small-scale mining in regions like Tarkwa. In light of this, anxious local politicians, gearing up for national elections on December 7, have sought to reassure licensed mining operations that they will be shielded from the government’s crackdown on illegal activities, popularly labeled as “galamsey”.
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“In Accra, they plan to enact a ban, yet I am here to extend my support to miners,” declared George Mireku Duker, the deputy mining minister and local legislator, during visits to four underground operations in October. While acknowledging that illegal mining poses a substantial issue, Duker realizes that a voter backlash against the New Patriotic Party (NPP), of which he is a member, could threaten his position on December 7, having secured his seat by only 101 votes in 2020.
“The small-scale mining sector generates employment for over a million Ghanaians, whereas large-scale operations offer jobs to fewer than 10,000,” Duker remarked to Bloomberg News. “Are you really willing to take away their livelihoods?”
Two miners digging for gold at an unregulated mine on the site of a former cocoa farm in Kwabeng, in Ghana’s Eastern Region in July. Image: Paul Ninson/Bloomberg
The mines that Duker inspected trace their lineage back to colonial times, currently operated either by private entities or local communities to combat the predominance of foreign firms in large-scale mining within this economically strained West African country. These artisanal and small-scale (ASM) operations—defined as those occupying less than 25 acres—were responsible for over 25% of Ghana’s four million ounces of gold mined in 2023, valued at an estimated $10.6 billion at current prices, an increase from 10% in 2012.
Empowered by heavy machinery and aided by lax regulations, the ASM sector mainly functions informally: approximately 70% of these mines, particularly in areas like Tarkwa, are thought to be unregulated.
The rise in illegal gold mining is fueled by soaring prices—surging by more than one-third this year to an unprecedented $2,787 per ounce in October—and eager demand from buyers in Dubai and other locations. The landscape of Tarkwa mirrors this reality: makeshift tents perched on hillsides, with worn clothing hung over wooden frames, hide mining operations at the town’s center, while young men congregate near Chinese equipment shops, offering their services as operators in exchange for a share of their finds.
The line between legal and illegal miners is often blurred. “Many individuals do have licenses,” observes Ishmael Quaicoe, head of the environmental and safety engineering department at Tarkwa’s University of Mines and Technology, “but their operations frequently fail to meet legal standards.”
Recent protests in September and October have underscored the consequences of galamsey mining. However, when the Trades Union Congress joined the protests, it intensified the call for an outright ban on all small-scale gold mining to counter practices linked to river pollution—one report from Ghana Water Company indicated in August that 60% of the raw water it processed was tainted by illegal mining, adversely impacting cocoa production and decimating forests.
Both main political parties—the ruling NPP and the opposing National Democratic Congress—have exchanged accusations regarding the mining dilemma. As elections loom, President Nana Akufo-Addo reacted to demands for a ban by threatening military action against mining locales to combat galamsey activities.
While he has yet to fulfill this threat, the announcement has rekindled memories of a severe crackdown on illegal mining in 2017. The ASM mining ban lasted nearly two years but ultimately backfired for the government, with allies arguing it contributed to a loss of its parliamentary majority in the 2020 elections.
A 2020 government report estimated that at least 4.5 million individuals, counting workers and their dependents, rely on gold for their livelihood. As such, the timing of these protests poses a quandary for the NPP, as polling indicates they may face their most dismal electoral performance on December 7, according to data from the Accra-based Global Analytics.
Young boys ‘wash’ gold to separate it from other metals in the Bonsa River, in October. The river has changed colour because of dredging machines that shake up the soil, causing turbidity. Image: Francis Kokoroko/Bloomberg
A water quality supervisor from the Ghana Water Company tests a sample from the Bonsa River. The utility is spending more money because of the deteriorating quality of rivers. Image: Francis Kokoroko/Bloomberg
Despite its mineral wealth, nearly 20% of the population in the Tarkwa-Nsuaem municipality—Duker’s constituency—lives in severe poverty, facing various deprivations such as insufficient clean water and inadequate housing, according to the Ghana Statistical Service. The lack of educational opportunities often drives young people to seek low-skilled and hazardous jobs in the ASM sector.
“They are perishing from poverty, thus they dismiss warnings about the hazards of mercury or cyanide,” says Elorm Ama Governor-Ababio, who was apprehended while protesting at the Democracy Hub in Accra. “They endure tremendous trauma, so when they confront life-threatening scenarios, they view them as a flicker of hope,” adds Governor-Ababio, who denies any wrongdoing.
Making the good delivery list
Ghana’s schoolchildren are taught that their country—once known as the Gold Coast during British colonial times—is so rich in gold that the sands sparkled when the first Europeans arrived in the 15th century.
In those early days, Akan traders exchanged their gold dust for European goods such as alcohol, copper, and textiles. Centuries later, Ghana remains Africa’s top gold producer, with significant contributors including UK-based Anglogold Ashanti, South Africa’s Gold Fields, American firm Newmont Corp, and China’s Chifeng Jilong Gold Mining Co.
Conversely, the ASM participants stand at the opposite end. Adwoa Pokuaa Boaduo, a mining engineer who penned a doctoral thesis on reforming artisanal and small-scale mining in Ghana, notes that inadequate compliance checks allow licensed gold buyers to procure gold from illegal sources, effectively legitimizing its acquisition.
Rosemary Addico, who leads the responsible gold initiative at Solidaridad’s West Africa—a non-governmental organization advocating for compliance with global best practices among miners—asserts that buyers must take responsibility for verifying the origins of the gold: “If international purchasers demand certain criteria, traders will exercise greater caution regarding the sources and mining practices of their gold.”
To be accepted by the most discerning global buyers, including central banks, institutional investors, and luxury brands, gold must come from refiners recognized on the London Bullion Market Association’s Good Delivery List. This influential trade body does not certify mines but holds the refiners it licenses accountable for the gold within their supply chains, leading many to shy away from accepting gold directly from small-scale producers that may jeopardize their certification.
Nonetheless, numerous others purchasing Ghanaian gold with lax scrutiny still exist. Nana Akwuasi Awuah, head of the state-owned gold marketing firm—and several market participants—insist that gold from smaller illegal mines frequently finds its way to Dubai refineries. While none of these refineries appear on the LBMA’s Good Delivery List, the emirate does enforce rules requiring refiners to ensure that gold is sourced responsibly.
Once imported, the gold can be re-refined and marketed as “recycled” bullion to jewelers in India and other eastern markets, eventually reaching LBMA-accredited refiners without acknowledging its initial source. The LBMA mandates refiners to ensure responsible sourcing of gold, yet tracking the provenance of recycled gold proves exceptionally challenging, a reality underscored by a 2022 study published on the trade association’s website.
Illegal mining places an economic strain on Ghana, struggling with over $30 billion in external debt and having secured a $3 billion bailout from the International Monetary Fund last year.
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If the mining sector were to be formalized, Ghana could potentially more than double its gold revenue this year, as stated by Martin Ayisi, the chief executive officer of Ghana’s Minerals Commission, which oversees both large and small mining operations. Ayisi estimates that approximately 75% of the country’s artisanal and small-scale gold production remains unreported in export statistics. This reporting gap results from gold being either smuggled outland to neighboring countries that impose lower withholding taxes on unprocessed gold or recorded as transhipped from these nations, even if it was mined in Ghana initially.
“There are numerous ways to smuggle gold out,” Ayisi explains. “One method to stop this is by further reducing the tax,” which dropped from 3% to 1.5% in 2022, leading to a swift uptick in Ghana’s production.
The Dubai connection
In 2023, the United Arab Emirates reported gold imports from Ghana worth $3.2 billion (net weight of 52.9 metric tons). Meanwhile, Ghana reported only $1.7 billion in gold exports to the UAE (net weight of 27.8 metric tons), according to the United Nations’ Comtrade Database. This discrepancy creates an approximate $1.5 billion shortfall.
Dubai—a prominent trading hub within the seven emirates of the UAE—does not have its own gold mines but has become a crucial intermediary for the metal. The LBMA classifies the UAE as a high-risk zone, applying heightened scrutiny to any gold sourced from there.
However, Safeya AlSafi, the UAE’s acting undersecretary for commercial control and governance at the Ministry of Economy, informed Bloomberg News that this gap may arise from inaccurate reporting from the exporting country, adding, “I can’t definitively say there’s any smuggling. We maintain a very rigorous system.”
At the Minerals Commission, Ayisi acknowledged the challenges involved in tracking the gold exiting Ghana.
Ghana was among the first nations in Africa to legalize artisanal and small-scale mining, a sector that accounts for roughly one-fifth of the world’s gold supply, according to a report from the World Gold Council. Presently, officials widely agree that advancing the formalization of this sector is essential to counter smuggling and lessen environmental destruction.
A miner rests against bags of ore while taking a break in an underground mine in a legal mine in Tarkwa. He will keep three out of every four bags, the fourth will be a fee to the mine owner. Image: Francis Kokoroko/Bloomberg
A legal small-scale gold mining site in Tarkwa. The mine’s toxic waste, including mercury, has been contained, preventing it from polluting the nearby environment. Image: Francis Kokoroko/Bloomberg
The country has embraced a pilot initiative, in collaboration with Peru, the Philippines, and Tanzania, aimed at pre-approving specific small-scale mines and enabling them to directly sell their gold to LBMA-accredited refiners. Nevertheless, critics contend that in the absence of financial incentives for responsible operations, miners have little reason to engage in this pilot.
The LBMA is partially motivated by the demand for “clean” gold for its refiners, who currently miss out on a fifth of global supply due to stringent sourcing standards. For governments, this creates an opportunity to sell gold directly to LBMA refineries, promoting a more structured market for their gold.
“Will we resolve all of the world’s problems?,” questions Neil Harby, the LBMA’s chief technical officer. “No, but we must take the first step.”
In Accra, one of just three regions in Ghana that does not produce gold, the anti-galamsey movement is gaining momentum, despite a decline in protests due to shifting electoral focus towards the economy—marked by inflation exceeding 20% for over a year and high unemployment in a nation of 34 million. Billboards displaying images of brown rivers and reports of birth defects allegedly connected to galamsey have heightened public awareness about the dilemma.
However, neither of the two primary parties is positioned to fully utilize the discontent towards ASM. Both have intermittently enforced crackdowns on illegal mining yet have also benefited financially from “illegal activities in the small-scale mining sector,” as per a 2021 report by former environment minister, Kwabena Frimpong-Boateng.
In 2022, Ghana enacted legislation permitting mining within conservation-designated forest reserves. Of these, at least four licenses have been granted by the government in regions noted for their unique flora and fauna, as reported by The Fourth Estate, an investigative initiative led by Ghanaian journalists.
The Frimpong-Boateng report, which accused politicians from both sides of potential conflicts of interest, was dismissed by the presidency as unfounded. Nevertheless, it prompted an inquiry by Ghana’s Commission on Human Rights and Administrative Justice, which remains ongoing.
“For around two decades, parties have rewarded loyalists with concessions,” notes E. Gyimah-Boadi, founder of the non-partisan research network, Afrobarometer. “They are unlikely to expose themselves by committing to actions that could restrict their autonomy.”
Richard Ahiagbah, the communications director at the NPP, rejects this accusation, asserting that the 2017 ban underscores the government’s dedication to tackling the ASM issue. The NDC likewise dismisses any suggestions of conflict of interest during their administration. Samuel Gyamfi, the party’s national communications officer, called the environmental crisis “unprecedented” and assigned blame to the NPP.
Miners process ore on a makeshift sluice to extract gold at a small-scale legal mining site in Tarkwa. Photographer: Francis Kokoroko/Bloomberg
For Dora Kowfia, a 54-year-old former artisanal miner, this marks a confusing period. Once a supporter of the NPP, she now finds herself uncertain about whom to endorse. Currently, she sells textiles at a roadside stall overlooking the Bonsa River, where the impacts of illegal mining are visible in the murky waters.
When probed about her concerns regarding pollution, Kowfia voices a sentiment shared in mining communities across Ghana: “Accra is urging us to ‘stop galamsey.’ I want leaders who will either protect it or create new job opportunities for us.”
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