Gold is a prominent feature of Tarkwa, present in the nearby forests and beneath the ground in Ghana’s largest mining town. It serves as the foundation of the local economy, with noticeable excavations indicating illegal attempts to gain this valued metal, while the polluted river that borders the town showcases the impact of increased semi-industrial mining activities.

The environmental damage has led to widespread protests in Accra, calling for an outright ban on small-scale mining in places like Tarkwa. In light of this, anxious local politicians, facing national elections on December 7, are striving to assure legally licensed miners that they will be sheltered from the government’s clampdown on illegal operations, commonly referred to as “galamsey.”

“In Accra, they plan to enforce a ban, yet I am here to express my support for miners,” remarked George Mireku Duker, the deputy mining minister and local legislator, during his visits to four underground sites in October. While acknowledging that illegal mining poses a serious issue, Duker is also aware that a voter backlash against the New Patriotic Party (NPP), with which he is affiliated, could threaten his seat come December 7, as he previously secured victory by only 101 votes in 2020.

“The small-scale mining industry supports over one million Ghanaians, while large-scale mining employs less than 10,000,” Duker shared with Bloomberg News. “Are you truly willing to take away their means of living?”

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 visited date back to colonial times and are now overseen either by local communities or private entities in an effort to counter the foreign control over large-scale mining in this financially burdened West African nation. These artisanal and small-scale (ASM) mines—defined as operations covering less than 25 acres—were responsible for producing more than a quarter of the four million ounces of gold that Ghana mined in 2023, valued at around $10.6 billion at current rates, an increase from 10% in 2012.

Supported by heavy machinery and limited regulation, the ASM sector primarily operates informally: an estimated 70% of these mines, which have expanded in regions like Tarkwa, lack regulatory oversight.

The increase in illicit gold mining is propelled by soaring prices—up over one-third this year to a record $2,787 per ounce in October—and enthusiastic buyers in Dubai and beyond. The landscape in Tarkwa reflects this reality: makeshift tents perched on slopes, with tattered clothing draped over wooden panels, hide mining activities at the town’s center, while young men loiter outside Chinese machinery shops, seeking opportunities to work as operators in exchange for a share of what they find in the rivers.

The line between legal and illegal operators is often blurred. “Many individuals possess licenses,” asserts Ishmael Quaicoe, head of the environmental and safety engineering department at Tarkwa’s University of Mines and Technology, “but their activities frequently fail to align with legal standards.”

Recent protests in September and October have underscored the consequences of galamsey mining. However, when the Trades Union Congress joined the movement, it amplified the demands, advocating for a total ban on all small-scale gold mining to halt practices linked to river contamination—one facility from Ghana Water Company noted in August that 60% of the raw water it treated was tainted by illegal mining, adversely affecting cocoa cultivation and decimating forests.

Both leading political parties—the ruling NPP and the opposition National Democratic Congress—have exchanged blame regarding the mining dilemma. As elections approach, President Nana Akufo-Addo responded to calls for a ban by threatening military intervention against mining towns to combat galamsey operations.

Though he has yet to implement this pledge, the announcement has revived memories of a stringent clampdown on illegal mining in 2017. The prohibition on ASM mining lasted about two years but negatively impacted the government, with allies citing it as a key contributor to the loss of parliamentary majority in the 2020 elections.

According to a 2020 government estimate, at least 4.5 million people—workers and their dependents—rely on gold for their subsistence. Therefore, the timing of these protests poses a dilemma for the NPP, which polls suggest may face its worst electoral results ever on December 7, based on 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 riches, nearly 20% of the Tarkwa-Nsuaem municipality—Duker’s constituency—live in extreme poverty, grappling with various deprivations from lack of clean water to poor housing, according to the Ghana Statistical Service. The lack of educational opportunities often drives young individuals toward low-skilled and dangerous jobs in the ASM sector.

“They are suffering from poverty, thus they ignore warnings about the hazards of mercury or cyanide,” mentions Elorm Ama Governor-Ababio, who was detained during a Democracy Hub protest in Accra. “They experience tremendous trauma, so when facing a life-threatening situation, they see it as a glimmer of hope,” adds Governor-Ababio, who claims he has done nothing wrong.

Making the Good Delivery List

Schoolchildren in Ghana learn that their country, historically known as the Gold Coast during British colonial times, possesses such an abundance of this precious metal that the sand sparkled when the first Europeans arrived in the 15th century.

In those early days, Akan traders swapped their gold dust for European goods like alcohol, copper, and textiles. Centuries later, Ghana remains the leading gold producer in Africa, with significant players including the UK-based Anglogold Ashanti, South Africa’s Gold Fields, American firm Newmont Corp, and China’s Chifeng Jilong Gold Mining Co actively engaged.

At the opposite end are ASM operators. Adwoa Pokuaa Boaduo, a mining engineer who completed a doctoral thesis on potential reforms in artisanal and small-scale mining in Ghana, emphasizes that inadequate compliance checks allow licensed gold buyers to purchase gold from illegal mines, thus legitimizing its origin.

Rosemary Addico, who heads the responsible gold program at Solidaridad’s West Africa—a non-governmental organization promoting adherence to global best practices among miners—argues that purchasers need to scrutinize the source of the gold: “When international buyers demand specific standards, traders will exercise more caution concerning the origins of their gold and mining practices.”

To gain acceptance from the most discerning global buyers, including central banks, institutional investors, and luxury brands, gold must originate from refiners on the London Bullion Market Association’s Good Delivery List. This influential trade body doesn’t certify mines but holds licensed refiners accountable for the gold in their supply chains, resulting in many being hesitant to accept gold directly from small-scale producers due to risks to their certification.

Nevertheless, numerous other buyers of Ghanaian gold with less stringent oversight still exist. Nana Akwuasi Awuah, the head of the state-owned gold marketing agency—and several market participants—assert that gold from smaller illegal mines often ends up in Dubai refineries. However, none of these refineries are registered on the LBMA’s Good Delivery List, even though the emirate has regulations stipulating that refiners must confirm their gold is responsibly sourced.

Upon importation, the gold can be re-refined and sold as “recycled” bullion to jewelers in India and other eastern markets, potentially reaching LBMA-accredited refiners without disclosing its original origin. The LBMA requires refiners to conduct verifications to ensure responsible sourcing of gold, yet tracing the provenance of recycled gold can be exceedingly challenging, a reality underscored by a 2022 study shared on the trade association’s website.

Illegal mining presents an economic challenge for Ghana, which is burdened with over $30 billion in external debt and secured a $3 billion bailout from the International Monetary Fund last year.

If the mining sector were formalized, Ghana could potentially see its gold revenue more than double this year, according to Martin Ayisi, the chief executive officer of Ghana’s Minerals Commission, which oversees both large and small mining operations. Ayisi estimates that at least 75% of the country’s artisanal and small-scale gold production isn’t represented in export figures. This discrepancy arises from gold either being smuggled out overland to neighboring nations like Ivory Coast, Togo, and Burkina Faso—where lower withholding taxes on unprocessed gold apply—or recorded as transshipped from one of these countries, despite originating in Ghana.

“Numerous methods exist for smuggling gold out,” explains Ayisi. “One approach to stop this is by further lowering the tax,” which was reduced to 1.5% from 3% in 2022, leading to an immediate increase in Ghana’s production.

The Dubai Connection

In 2023, the United Arab Emirates reported importing $3.2 billion worth of gold (52.9 metric tons net weight) from Ghana. That same year, Ghana reported only $1.7 billion in gold exports to the UAE (27.8 metric tons net weight), as indicated by the United Nations’ Comtrade Database. This discrepancy highlights a shortfall of about $1.5 billion.

Dubai—a key hub among the seven emirates of the UAE—lacks its own gold mines yet has emerged as a prominent trading intermediary for the metal. The LBMA categorizes the UAE as a high-risk area, subjecting it to heightened scrutiny regarding 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 shortfall may result from misreported information from the exporting country, adding, “I cannot definitively state that there’s any smuggling. We maintain a very rigorous system.”

At the Minerals Commission, Ayisi acknowledged the challenges in tracking what exits Ghana.

Ghana was one of the first countries in Africa to legalize artisanal and small-scale mining, a sector that globally accounts for about one-fifth of the world’s gold supply, according to a report from the World Gold Council. Currently, officials largely concur that stronger formalization is essential to tackle smuggling and reduce environmental harm.

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, while 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 nation has embarked on a pilot project, alongside Peru, the Philippines, and Tanzania, aimed at pre-approving specific small-scale mines, allowing them to sell their gold directly to LBMA-accredited refiners. Critics, however, contend that without financial incentives for responsible practices, miners lack sufficient motivation to engage in this pilot.

The LBMA is partially driven by the demand for cleaner gold from its refiners, who currently miss out on about one-fifth of the global supply due to stringent sourcing requirements. For governments, this means they can sell gold directly to LBMA refineries, facilitating a more organized market for their gold.

“Will we solve all the world’s issues?,” questions Neil Harby, the LBMA’s chief technical officer. “No, but we have to take the initial step.”

In Accra, one of only three regions in Ghana without gold production, the anti-galamsey movement is gaining momentum, even as protests have dwindled in focus due to the electoral emphasis shifting towards the economy—marked by inflation exceeding 20% for over a year—and high unemployment in a nation of 34 million. Billboards featuring images of brown rivers and reports of birth defects purportedly linked to galamsey have sparked public awareness about the issue.

However, neither of the two primary parties is well-positioned to fully capitalize on the public’s animosity toward ASM. Both have, at various times, executed crackdowns on illegal mining yet have also profited financially from “unlawful activities within the small-scale mining sector,” according to a 2021 report by former environment minister Kwabena Frimpong-Boateng.

In 2022, Ghana enacted legislation that permits mining within forest reserves designated for conservation. Of these, at least four licenses have been issued by the government in areas noted for their unique flora and fauna, as reported by The Fourth Estate, an investigative project led by Ghanaian journalists.

The Frimpong-Boateng report, which accused politicians from both sides of having potential conflicts of interest, was dismissed by the presidency as baseless. Yet, it initiated an investigation by Ghana’s Commission on Human Rights and Administrative Justice, which is ongoing.

“For about 20 years, parties have been rewarding loyalists with concessions,” states E. Gyimah-Boadi, founder of the non-partisan research network Afrobarometer. “They are unlikely to expose themselves by committing to measures that could limit their autonomy.”

Richard Ahiagbah, the communications director at the NPP, disputes this assertion, claiming that the 2017 ban illustrates the government’s dedication to addressing the ASM issue. The NDC similarly refutes any allegations of conflict of interest during their administration. Samuel Gyamfi, the party’s national communications officer, described the environmental crisis as “unprecedented” and placed blame on 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 is a confusing time. Once a supporter of the NPP, she now finds herself uncertain about whom to support. Currently, she sells textiles at a roadside stall overlooking the Bonsa River, where the effects of illegal mining are visible in the murky waters.

When asked about her worries regarding pollution, Kowfia reflects a feeling common among mining communities throughout Ghana: “Accra is telling us to ‘stop galamsey.’ I want leaders who will either protect it or give us new job opportunities.”

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