Ghana to Implement National Gold Traceability System This Year

Key Takeaways

• The Ghana Gold Board (GoldBod) is set to implement a national gold traceability system this year.
• The system will track gold purchased from small-scale miners to ensure responsible mining practices.
• The system is expected to formalize gold production and bring Ghana's small-scale mining supply chain into compliance with international responsible-sourcing standards.
• The system will enable GoldBod to access premium international markets, including the London Bullion Market Association (LBMA), and secure better prices for the country's gold.

The absence of a formal traceability system has hindered Ghana's ability to determine the proportion of gold purchased from small-scale miners that was responsibly mined. According to Sammy Gyamfi, the Chief Executive Officer of GoldBod, the gold board currently cannot determine what proportion of the gold it purchased from small-scale miners was responsibly mined.

Ghana's gold mining sector is dominated by small-scale miners, with GoldBod purchasing 3.1 million ounces of gold from them in the past year. However, the lack of a traceability system has made it difficult for GoldBod to ensure that the gold is mined responsibly.

Background & Context

Ghana has a long history of gold mining, with the industry dating back to the 19th century. However, the industry has been plagued by issues such as child labor, mercury use, and lack of regulation. The introduction of a national gold traceability system is expected to address these issues and bring Ghana's gold mining sector in line with international standards.

The OECD has established a set of responsible sourcing standards for gold, which Ghana's gold mining sector is expected to comply with. The standards include requirements for gold mining companies to disclose their supply chains, ensure that gold is mined responsibly, and prevent the use of mercury and child labor.

Key Findings

The Ghana Gold Board (GoldBod) is currently involved in a national competitive tendering process to acquire a traceability system. The system is expected to enable GoldBod to track gold from its point of origin and ensure that it is mined responsibly. The system will also help establish whether the source is licensed, how the gold was produced, whether mercury was used and whether child labor was involved.

GoldBod has developed a responsible sourcing policy which prioritizes traceability and is now taking steps to implement a system capable of tracking gold from its point of origin. The system is expected to eventually enable GoldBod to trace every gram of gold it purchases and sells back to its mine of origin.

Broader Implications

The implementation of a national gold traceability system is expected to have far-reaching implications for Ghana's gold mining sector. It will enable GoldBod to access premium international markets, including the London Bullion Market Association (LBMA), and secure better prices for the country's gold. It will also help to formalize gold production and bring Ghana's small-scale mining supply chain into compliance with international responsible-sourcing standards.

The system will also help to prevent the use of mercury and child labor in the gold mining sector, and ensure that gold is mined responsibly. This will not only improve the reputation of Ghana's gold mining sector, but also ensure that the country's gold is mined in a way that is sustainable and responsible.

Looking Ahead

The implementation of a national gold traceability system is expected to begin this year, with the onboarding of eligible small-scale miners onto the system expected to start soon. The system is expected to be fully implemented within the next few months, and will enable GoldBod to track gold from its point of origin and ensure that it is mined responsibly.

The success of the system will depend on the effective implementation of the traceability system and the cooperation of small-scale miners. It is expected that the system will have a significant impact on the gold mining sector, and will help to formalize gold production and bring Ghana's small-scale mining supply chain into compliance with international responsible-sourcing standards.