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New Authority for Gold Trade in Ghana

Combating Galamsey as a Pressing Task

The Chairman of the Coalition against Illegal Mining, Dr. Kenneth Ashigbey, has called on the state-run Environmental Protection Agency (EPA) and the Ghanaian army to significantly improve the equipment of their personnel in order to combat illegal mining more effectively.
For some time now, the EPA and the army have been carrying out targeted operations, during which, in addition to galamsey, other criminal activities have also been uncovered. Dr. Ashigbey reiterated his demand for an absolute ban on mining in protected forest reserves. The fight against galamsey is becoming increasingly dangerous, as the miners are now heavily armed. During an operation in the Subri Forest Reserve in the Western Region, an underground cave system was discovered, housing people from Nigeria, Guinea, Mali, Niger, and Burkina Faso. Authorities suspect a highly dangerous cartel, which is not only involved in illegal mining but also in prostitution, human trafficking, and drug offenses.

In light of the growing threat from organized crime, the training and equipment of the EPA and the army must be significantly improved, said Dr. Ashigbey, calling on the new government for a comprehensive and coordinated deployment of all state forces to finally put an end to illegal mining.
It is in this context that the creation of a new authority should be viewed. The Ghana Gold Board (GoldBod) will henceforth have the sole authority over gold trading in the country. Ghana is now the largest gold producer in Africa and the sixth largest in the world. Recently, Chinese nationals in particular have been involved in illegal gold mining, which, in addition to economic burdens, has also caused massive environmental damage. There are now estimates suggesting that 60% of Ghana’s rivers and lakes are affected by mercury contamination and similar pollutants.


The ban on gold trading for foreigners is seen as a first step toward bringing the gold sector under control and effectively combating galamsey. Licenses of domestic traders have also been revoked. The government has provided the new authority with around $280 million to purchase three tons of gold per month and market it internationally. Finance Minister Ato Forson hopes to generate foreign exchange and stabilize the Cedi. Due to trade tensions between the US and China, investors are seeking safe investment opportunities, which is driving the price of gold to ever greater heights.
 

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