Latest news with #GoldBod
Arabian Post
5 days ago
- Business
- Arabian Post
Unregulated Gold Rush Poses Existential Risk to Ghana's Mining Future
Ghana's gold reserves have surged to 31.37 tonnes in 2025, reaffirming its position as Africa's leading gold producer. However, this growth is shadowed by a significant rise in artisanal and small-scale mining , which now accounts for nearly 40% of national output. The proliferation of unlicensed operations is raising alarms over environmental degradation, regulatory challenges, and the long-term sustainability of the country's mining sector. The Ghana Chamber of Mines projects a 6.25% increase in gold production, reaching 5.1 million ounces this year. This uptick is driven by both large-scale projects, such as Newmont's Ahafo South and Shandong's Namdini mines, and a notable expansion in ASM activities. Despite contributing significantly to gold output, an estimated 70–80% of ASM operations remain unlicensed, complicating efforts to regulate the sector and mitigate its environmental impact. The environmental consequences of unregulated ASM are evident. In Senegal, similar practices have led to mercury contamination in the Faleme River, prompting a suspension of mining activities along its banks until 2027. In Ghana, the use of mercury and other hazardous chemicals in ASM poses serious risks to both ecosystems and public health. ADVERTISEMENT To address these challenges, the Ghanaian government has established the GoldBod initiative, aiming to streamline small-scale gold purchases and combat smuggling. The removal of withholding taxes has also been implemented to reduce illegal trade. However, enforcement remains a significant hurdle, with many ASM operations continuing outside the legal framework. The rise in ASM is not unique to Ghana. Across Africa, artisanal mining supports the livelihoods of millions but often operates in legal grey areas. In the Democratic Republic of Congo, for instance, ASM is a major component of the mining industry, yet it frequently involves child labor and unsafe working conditions. Efforts to formalize the sector have been inconsistent, leading to ongoing concerns about human rights and environmental sustainability. The World Bank has introduced a new framework to promote sustainable and inclusive ASM practices. This approach emphasizes the professionalization of artisanal miners, urging governments to implement regulatory measures that ensure environmental stewardship and social well-being. By fostering partnerships among governments, multilateral institutions, and civil society, the framework seeks to integrate ASM into the formal economy, enhancing transparency and accountability. Technological advancements offer potential solutions for sustainable mining. In Zimbabwe, the introduction of biological oxidation techniques has reduced pollution by 20%, minimizing the use of harmful chemicals like mercury and cyanide. Similarly, the adoption of renewable energy sources, such as solar and wind power, is transforming mining operations across Africa, reducing carbon footprints and operational costs. Despite these initiatives, the path to sustainable mining in Ghana remains fraught with challenges. The informal nature of ASM, coupled with limited access to financing and equipment, hampers efforts to improve efficiency and safety. Moreover, the lack of clear property rights and tenure security often leads to conflicts between artisanal miners and large-scale mining companies. To mitigate these issues, experts advocate for comprehensive reforms that include simplifying licensing processes, providing technical training, and ensuring fair market access for artisanal miners. By integrating ASM into the formal economy, Ghana can enhance regulatory compliance, protect the environment, and promote equitable economic growth.
Arabian Post
31-05-2025
- Business
- Arabian Post
Ghana Eyes 5.1 Million Ounces in 2025 Gold Output Surge
Ghana's gold production is projected to reach approximately 5.1 million ounces in 2025, marking a 6.25% increase from the previous year's record of 4.8 million ounces. This forecast, released by the Chamber of Mines, underscores the nation's sustained position as Africa's leading gold producer. The anticipated growth is attributed to heightened activity in both artisanal mining and the commencement of large-scale operations. Notably, Newmont's Ahafo South Mine and Shandong Gold's Namdini Mine are expected to contribute significantly to the uptick in output. In 2024, Ghana's gold production experienced a substantial 19.3% rise, bolstering export revenues and strengthening the national currency, the cedi. This surge has been instrumental in aiding the country's recovery from its most severe economic downturn in decades. ADVERTISEMENT Artisanal and small-scale mining played a pivotal role, accounting for a record 39.4% of the total gold output in 2024. However, the sector faces challenges, with an estimated 70-80% of operations lacking proper licensing, leading to environmental degradation and conflicts over land use. To address these issues, the government has implemented reforms, including the establishment of the GoldBod to streamline gold purchases from small-scale miners and the removal of a withholding tax on local gold transactions. These measures aim to reduce smuggling and increase formalization within the sector. Despite the positive outlook, concerns persist regarding the sustainability of production levels. Aging mines such as Gold Fields' Tarkwa and Perseus' Edikan are projected to experience declines in output. The Chamber of Mines emphasizes the need for increased exploration to ensure long-term growth in the mining sector.
Yahoo
30-05-2025
- Business
- Yahoo
Ghana gold output could rise to 5.1 million ounces in 2025
STORY: :: File Ghana is projected to produce more gold in 2025. That's according to the country's Chamber of Mines on Friday. Its gold production could increase by around 6.25% from last year to approximately 5.1 million ounces. High output has been driven by strong production from artisanal mining and the introduction of new large-scale operations. The 2025 forecast follows Ghana's stronger-than-expected performance in 2024. Last year, the total gold output rose almost one fifth, cementing its position as Africa's top gold producer, ahead of South Africa and Mali. The surging prices of the precious metal have increased Ghana's export revenue. It also strengthens the cedi currency, boosting the country's recovery from its worst economic crisis in a generation. Here's Chamber of Mines President Michael Akafia. "I think clearly one of the drivers is the gold price. But then where we are seeing the biggest impact is in the small-scale sector. Because whereas the large-scale production stagnated around 2.9 million ounces for gold, for the small-scale sector there was a big, a huge jump, a significant jump." Last year, Ghana's gold output was driven by a record contribution from small-scale miners. Ghana's new government has formed the GoldBod, a regulator that will streamline gold purchases from small-scale miners, aiming to increase their earnings, and reduce the impact of smuggling. It has also removed a withholding tax on local gold purchases. The Ghana National Association of Small-Scale Miners said the new measures will help the sector beat its 2024 gold output. Here's the group's general secretary Godwin Armah. "The small-scale mining sector has contributed a lot to the socio-economic development of the country in areas of jobs providing about 1 million direct and indirect jobs to Ghanaians and also it's a source of supply of raw gold for value addition and all that.' Ghana's booming artisanal mining sector is under increased scrutiny due to resulting harm to the environment and cocoa farms. Akafia says the country needs a stronger pipeline of gold exploration projects to ensure sustainable production in the future.
Yahoo
01-05-2025
- Business
- Yahoo
Ghana expands gold purchase programme with nine more gold miners
The Ghana Gold Board (GoldBod) has reached an agreement with nine additional large-scale mining companies to purchase 20% of their gold production to augment the nation's gold and foreign reserves under the Bank of Ghana's domestic gold purchase programme. GoldBod is the government entity responsible for managing gold purchases from small-scale miners and combatting smuggling. The latest deal includes mining companies that were not part of the central bank's initial scheme. The new participants include Adamus Resources, Akroma Gold, Cardinal Namdini Mining, Earl International Group, Gan He Mining Resource Development, Golden Team Mining, Goldstone Akrokeri, Prestea Sankofa Gold and Xtra Gold Mining. GoldBod and all relevant parties are expected to execute a formal written agreement on 15 May, which will facilitate the initiation of the programme starting from 1 June. GoldBod said in a statement: "Under the Agreement, the mining companies will deliver 20% of any gold they seek to export out of the country to the GoldBod in the form of doré bars at a designated collection point, which shall be the Assay Laboratory of the GoldBod at the Kotoka International Airport." The involved mining companies will be compensated in Ghanaian cedis, with a 1% discount off the London Bullion Market Association spot price. Collectively, the nine gold miners produce approximately 200kg of gold each month, as per GoldBod's spokesperson, quoted by Reuters. In 2022, Ghana initially inked an agreement with industry players such as Gold Fields, Newmont, AngloGold Ashanti and Asanko Mining to acquire a fifth of their yearly gold output for the Bank of Ghana. Bank of Ghana's gold holdings have increased from 8.77 tonnes (t) in 2022 to 30.8t in February this year, boosting the country's gross reserves to $9.4bn (133.3bn cedis). Gold-producing countries are seeking to derive greater value from the commodity amid a 29% surge in gold prices this year, partly due to US President Donald Trump's tariffs and global political uncertainties. In April, Gold Fields announced it would cease operations at its Damang gold mine in Ghana following the government's decision not to renew the mining lease. "Ghana expands gold purchase programme with nine more gold miners" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Arabian Post
01-05-2025
- Business
- Arabian Post
Ghana Centralises Gold Trade Under New Licensing Regime
Ghana has implemented a comprehensive overhaul of its gold trading framework, mandating that all individuals and entities involved in the sector obtain licences from the newly established Ghana Gold Board . This directive, effective from 1 May 2025, renders all previous licences issued by the Precious Minerals Marketing Company or the Ministry of Lands and Natural Resources invalid. Non-compliance will result in criminal prosecution. The GoldBod Act, passed by Parliament on 29 March and assented to by President John Dramani Mahama on 2 April, grants GoldBod exclusive authority over the purchase, sale, assaying, and export of gold produced by licensed small-scale miners. The initiative aims to curb illegal mining activities, commonly referred to as 'galamsey,' and to enhance the country's foreign exchange reserves by streamlining gold trading operations. Under the new regulations, foreign entities are prohibited from participating in Ghana's gold trading market unless they obtain a GoldBod-issued licence. All foreign participants were required to exit the market by 30 April 2025. However, foreign companies may still apply to purchase gold directly through GoldBod, subject to stringent licensing requirements, including a minimum capital threshold of $5 million. To facilitate the transition, GoldBod has extended the deadline for Ghanaian gold traders holding former PMMC or ministerial licences to reapply under the new regime. The new deadline is set for 21 May 2025. Applicants are required to submit comprehensive documentation, including proof of business registration, financial disclosures, tax compliance certificates, and anti-money laundering declarations. Incomplete or erroneous applications may result in disqualification. The enforcement of the new licensing framework has already led to legal action. On 29 April, three Indian nationals were arrested on suspicion of operating a gold smuggling syndicate that allegedly exported significant quantities of gold out of Ghana over a decade. The individuals have pleaded guilty and are scheduled for a court hearing on 12 May.
