Unlicensed Gold Mining in Ghana

By Maxwell Akalaare Adombila
PRESTEA-HUNI VALLEY, Ghana (Reuters)
At an unlicensed gold mine in Ghana, men in t-shirts, shorts, and rubber boots wade through pools of muddy water laced with mercury, pulling out rocks with bare hands and operating a rickety sluice as they search for the precious ore.

The ramshackle mine is part of a booming business generating livelihoods and informal revenue streams for Ghana’s economy, despite its detrimental impacts on health, the environment, and rising crime rates.

“It’s risky but I just want to survive,” said one young man at the wildcat site visited by Reuters in the Prestea-Huni Valley district. The 24-year-old accounting student, who wished to remain unnamed, has been skipping classes to prospect for gold, needing the money after losing his father in his teens.

There was no professional protective equipment at the mine. Most wore flimsy plastic shopping bags on their heads, while others improvised with swimming goggles or rice bags as makeshift protection.

The unlicensed gold mining industry, known as “galamsey,” has exploded in growth this year, spurred on by a nearly 30% increase in global gold prices, attracting new entrants. Small-scale mines produced over 1.2 million ounces of gold in the first seven months of this year, surpassing output from all of 2023.

About 40% of Ghana’s total gold output comes from small mines, with 70-80% of these being unlicensed. Martin Ayisi, head of Ghana’s Minerals Commission, noted that most galamsey gold is smuggled out of the country, failing to contribute to national gold export revenues.

Despite the booming sector’s potential to revitalize the economy, experts stress the blurred lines between legal mining and galamsey and caution that informal mines could account for a larger share of revenues than acknowledged.

The dangers associated with galamsey are indisputable. Reports indicate dozens of miners have died in collapsing pits, while hospitals in nearby towns report high incidences of pulmonary diseases caused by dust and toxic fumes from chemicals like mercury and nitric acid.

These pollutants have contaminated approximately 65% of water sources in Ghana and led to the destruction of vast areas of cocoa plantations and virgin forests. Recent protests in Accra have criticized President Nana Akufo-Addo’s government for its perceived failure to address these challenges. Demonstrators expressed their frustrations with signs reading, “Leaders, you’ve failed us!” and called for an end to galamsey practices.

In response, the government argues it is taking measures against galamsey, including deploying soldiers for crackdowns and destroying mining equipment. However, with an upcoming general election on December 7, candidates have promised to formalize the sector by providing funding to explore and map gold mining areas for locals.

Despite these promises, previous governments have struggled to effectively tackle the issue, hampered by the influence of powerful stakeholders benefiting from galamsey. Chris Aston, leading a British initiative for small-scale mining regulation, highlighted how artisanal miners often fall prey to organized crime groups that fund their operations.

The intersection of illegal mining with organized crime has led to increased gun trafficking, with miners seeking armed protection. Allegations suggest that politicians and local leaders are taking advantage of galamsey profits, creating an environment resistant to change. Ghana’s information minister did not respond to inquiries about the organized crime links or the corruption allegations. A national security official indicated efforts are underway to address the intertwining of illegal mining, money laundering, and gun trafficking.