Ghana to track gold from mine to market
Ghana to track small-scale gold output, aiming to meet international responsible-sourcing standards.
Ghana is set to introduce a national gold traceability system this year to track gold purchased from small-scale miners, the Chief Executive Officer of the Ghana Gold Board (GoldBod), Sammy Gyamfi, has said. Gyamfi said GoldBod currently cannot determine how much of the 3.1 million ounces of gold it purchased from small-scale miners was responsibly produced because Ghana has never had a formal traceability system.
He said 27 companies initially submitted bids to provide the technology, with 17 firms advancing after technical evaluations. The procurement process is expected to be completed within the year. The system will track gold from its mine of origin and determine whether it was legally produced, whether mercury was used and whether child labour was involved.
GoldBod said the initiative will help formalise small-scale mining, meet international responsible-sourcing standards and improve Ghana’s access to premium markets such as the London Bullion Market Association.
The Nigerian stake is clear. Ghana’s gold sector is a direct competitor to Nigeria’s mining industry. If Ghana succeeds in formalising its small-scale mining sector and gaining access to premium markets, it could attract investment away from Nigeria.
From a Nigerian vantage point, Ghana’s traceability system is a model for Nigeria. The country has significant gold reserves, but the sector is largely unregulated. A similar system could help formalise Nigeria’s artisanal mining sector and reduce the environmental and social costs of illegal mining.
This echoes the 2020s push for responsible sourcing in Africa, which has seen several countries introduce traceability systems. The mechanism then was different, but the result was the same: a focus on formalising the mining sector.
The winners: Ghana, which will gain access to premium markets; and Ghanaian miners, who will benefit from formalisation. The losers: Nigeria, which risks falling behind; and the Nigerian government, which must act to formalise its own mining sector.
Bottom Line: Ghana is tracking its gold. Nigeria is watching. The question is whether Nigeria will follow Ghana’s example or fall further behind.