As the gold price crossed $3,200 per ounce for the first time, Ghana, a major gold producer, has officially centralized control over its gold exports under a newly established government entity.
Effective immediately, Ghana Gold Board (GoldBod) becomes the sole institution authorized to buy, sell, assay, and export gold from the country's artisanal and small-scale mining sector to curb illegal mining and boost state revenues.
"The Ghana Gold Board aims to regulate the gold industry, stabilize the cedi, and maximize revenue from gold exports. As Africa's leading gold producer, Ghana derives substantial foreign exchange earnings from gold. However, the benefits accrued from this valuable mineral remain minimal, often coming at a steep environmental cost," Finance Minister Cassiel Ato Baah Forson said in the inaugural statement earlier this year.
The government has also mandated that all foreign gold traders exit the local market by April 30, 2025, though they may still apply to buy gold directly from GoldBod under regulated conditions. All licensed buyers must now conduct transactions in Ghanaian cedis at prices based on the Bank of Ghana's reference rate.
By tightening the regulations, Ghana seeks to address the illegal mining issue, locally known as "galamsey." While small-scale mining accounts for 40% of the country's gold output, an estimated 70 to 80% is unlicensed. Illegal mining causes severe environmental damage, including deforestation, water pollution from mercury and heavy metals, and the destruction of cocoa farms, contributing to spiking cocoa prices.
The impact of galamsey on national revenues is substantial. Although Ghana's gold exports surged by 53.2% in 2024 to $11.64 billion, a large portion of gold produced by informal miners evades legal channels, limiting the government's ability to collect taxes and foreign reserves.
Officials believe consolidating trade under GoldBod will increase fiscal transparency and strengthen the cedi.
Gold mining is vital for the country's economy, contributing around 7% of the GDP and more than 1 million jobs. In 2024, production reached an estimated 4.9 million ounces (around 136 metric tons).
By 2026, major projects like Cardinal Resources' Namdini Mine, Newmont's (NYSE:NEM) Ahafo North, and Azumah Resources' Black Volta Gold Project could collectively add over 846,000 ounces in annual production.
Ghana will host its inaugural Mining in Motion Summit in Accra from June 2 to 4, 2025, to reinforce its leadership in responsible mining.
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