Ghana’s Gold Mining Crackdown

By Darius Spearman (africanelements)

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The Scourge of Galamsey

Ghana, a nation rich in golden resources, faces a persistent challenge with illegal small-scale mining, commonly known as “galamsey.” This practice, while providing a livelihood for many, operates largely outside state regulation, creating significant economic and environmental problems. Although small-scale mining is legally recognized as a legitimate source of income, more than 85 percent of these operations occur in the informal and illegal sector (theconversation.com).

This unregulated activity has become an important source of revenue for poor rural populations, employing over one million people and accounting for 40 percent of Ghana’s gold production (theconversation.com). However, the unchecked proliferation of galamsey has led to severe consequences. Ghana loses over $2.3 billion annually in mining revenues due to artisanal gold smuggling (ecofinagency.com). Furthermore, the illegal mining has polluted rivers and other parts of the environment, causing widespread ecological damage (apnews.com).

A Decisive Stand: The GOLDBOD Task Force

In response to this chronic issue, Ghana has established a new multi-agency task force, the GOLDBOD Task Force, specifically designed to combat illegal gold mining and smuggling. President John Mahama inaugurated this task force, stating its creation “signals our readiness to act decisively” (africanews.com). This move underscores the government’s commitment to reclaiming control over its valuable gold resources.

The GOLDBOD Task Force is comprised of officers from various security agencies and the military, empowering them to arrest and detain suspects (africanews.com). For enhanced accountability and real-time monitoring, task force members are equipped with body cameras (africanews.com). This measure aims to ensure transparency and build public trust in the enforcement efforts. The task force works in conjunction with the newly established Ghana Gold Board, aiming to dismantle the black-market economy surrounding gold and curb the proliferation of illegal miners.

Regulating the Gold Sector: The Ghana Gold Board (GoldBod)

Complementing the GOLDBOD Task Force is the Ghana Gold Board, known as GoldBod, which aims to regulate the gold sector comprehensively. The Ghana Gold Board bill was passed by Parliament on March 29, 2025, and subsequently signed into law by President John Dramani Mahama on April 2, 2025 (apnews.com). This legislative action paved the way for significant changes in the country’s gold trade.

Starting May 1, 2025, GoldBod became the sole buyer, seller, assayer, and exporter of all gold produced by the licensed Artisanal and Small-Scale Mining (ASM) sector in Ghana (graphic.com.gh). This monopolization of gold transactions extends to licensing for local market dealings (ecofinagency.com). Furthermore, foreigners are prohibited from trading gold in Ghana as of the same date (apnews.com). Prince Kwame Minkah, spokesman for GoldBod, stated that these trading activities are expected to build needed reserves, enhance foreign exchange, and effectively deal with gold smuggling (apnews.com). The development of GoldBod involved a broad, consultative approach, including engagements with various ministries and associations, such as the Ghana National Association of Small-Scale Miners (gna.org.gh).

The Economic and Environmental Toll

Ghana is the world’s sixth-largest gold producer (apnews.com). However, this wealth has not translated into widespread prosperity for all its citizens. The illegal gold mining industry has resulted in significant economic losses and environmental degradation for the nation. The flourishing of galamsey is largely attributed to a massive slump in Ghana’s economic fortunes and a struggle for jobs among young people (africanews.com).

The environmental impact is particularly devastating. Research links water pollution from galamsey to chronic diseases such as kidney failure, birth defects, and cancer in many of Ghana’s mining communities (issafrica.org). Moreover, the Forestry Commission has voiced concerns about the continued destruction of major forests. Already, 34 of the country’s 288 forest reserves have been affected by illegal mining, with the devastation of 4,726 hectares of forest land (issafrica.org). The issue of “galamsey” was a major concern during Ghana’s presidential election campaign last year, triggering protests and criticism against the outgoing government (apnews.com).

Rising Gold Prices and Escalating Conflicts

The global increase in gold prices is exacerbating conflicts between industrial and informal miners, leading to a surge in illegal mining activities. “The more the gold price rises, the more conflicts we will see between industrial and informal miners,” stated Laessing, head of the Sahel program at Germany’s Konrad Adenauer Foundation (reuters.com). This dynamic creates a dangerous environment for all involved.

Tragically, these conflicts often turn violent. For example, nine wildcat miners were shot dead in January at AGA’s Obuasi mine in Ghana when they cut open the fenced 110-square kilometer concession to scavenge gold (reuters.com). In another incident, at least three wildcat miners were shot by guards, and others were injured at Newmont’s Ahafo gold mining site in northwestern Ghana during the same month (reuters.com). The allure of quick wealth from rising gold prices also fuels the expansion of illegal operations, with reports of Chinese bosses deploying more equipment to new sites in Mali’s gold-rich Kayes region as prices climb (reuters.com). In response, industrial mine operators in West Africa are increasingly using drones to detect wildcat miners, highlighting the technological arms race in this struggle (reuters.com).

Addressing Skepticism and Seeking Solutions

Despite these new measures, analysts express skepticism about the effectiveness of past attempts to curb illegal gold mining. Festus Aboagye, an Accra-based security analyst, noted that “the challenge, as usual, is not regulation but enforcement” (africanews.com). Many analysts believe that previous efforts to control illegal gold mining have not produced tangible results, raising concerns about the long-term success of the current initiatives (africanews.com).

To address the root causes of galamsey, the government is exploring economic alternatives and job creation strategies for young people. One approach involves providing vocational training in sectors such as agriculture, construction, and manufacturing to help miners transition to other jobs (gbcghanaonline.com). Additionally, organizing small-scale miners into cooperatives is seen as a viable way to provide legal income sources and support (gbcghanaonline.com). This strategy aims to integrate them into the formal economy while promoting environmentally friendly mining methods. The regulation of artisanal mining by the Ghana Gold Board could also lead to the implementation of more sustainable practices, mitigating the severe environmental damage caused by unregulated operations.

ABOUT THE AUTHOR

Darius Spearman has been a professor of Black Studies at San Diego City College since 2007. He is the author of several books, including Between The Color Lines: A History of African Americans on the California Frontier Through 1890. You can visit Darius online at africanelements.org.