Ghana's Gold Board (GoldBod) will roll out a national gold traceability system this year. This system aims to track gold purchased from small-scale miners. The initiative seeks to ensure responsible sourcing and enhance Ghana's position in the global gold market.
The lack of a formal traceability system means GoldBod cannot currently determine the proportion of responsibly mined gold it buys. GoldBod purchased 3.1 million ounces of gold from small-scale miners. This figure exceeds the 2.8 million ounces produced by the large-scale mining sector. The new system will address this gap, ensuring transparency in the supply chain.
This development is crucial for Ghana's economic narrative, which relies heavily on its natural resources. Gold exports are a significant source of foreign exchange for the country. Formalising the small-scale mining sector can increase government revenue and improve working conditions. It also aligns with global trends towards ethical sourcing and sustainable practices in commodity markets.
Sammy Gyamfi, the Chief Executive Officer of GoldBod, confirmed the upcoming implementation. He stated that Ghana has never had a gold traceability system since mining began. Mr. Gyamfi explained that GoldBod has developed a responsible sourcing policy that prioritises traceability. He added that the board is actively acquiring the necessary technology.
The process for acquiring the traceability technology is well underway. GoldBod received bids from 27 companies, which have been narrowed down to 17 after technical evaluations. The board is now evaluating financial proposals. Mr. Gyamfi expects the system to be in place within months, with onboarding of eligible small-scale miners starting this year.
Acquiring the technology is only the first step in a broader strategy. The system will eventually trace every gram of gold back to its mine of origin. This will verify if the source is licensed and how the gold was produced. It will also check for the use of mercury and child labour, ensuring ethical practices.
The ultimate goal is to formalise gold production and bring Ghana's small-scale mining supply chain into compliance with international standards. This includes meeting requirements set by the Organisation for Economic Co-operation and Development (OECD). Compliance will strengthen Ghana's ability to access premium international markets, such as the London Bullion Market Association (LBMA).
Access to these markets can secure better prices and greater value for Ghana's gold resources. This will translate into increased revenue for the nation. The onboarding of eligible licensed small-scale miners and registered cooperatives will commence this year. This will integrate them into the new transparent system.
The initiative represents a significant step towards modernising Ghana's gold industry. It will enhance the country's reputation as a responsible gold producer. This move is expected to have a positive impact on Ghana's economy and its standing in global trade.