trending Market Intelligence /marketintelligence/en/news-insights/trending/ilebi1SJzfAPxO9iDmZ4fw2 content esgSubNav
In This List

Top African gold producer Ghana tightens laws on illegal mining

Blog

Insight Weekly: US stock performance; banks' M&A risk; COVID-19 vaccine makers' earnings

Blog

Insight Weekly: LNG exports surge; investors unfazed by inflation; neobanks drive VC funding

Blog

Essential Metals Mining Insights November 2021

Blog

[Infographic]: 2021 World Exploration Trends


Top African gold producer Ghana tightens laws on illegal mining

Ghana, the largest gold producer in Africa, approved amendments to its mining laws to address illegal mining, including setting a minimum sentence of 15 years, deporting foreigners and confiscating mining equipment for anyone found breaking the law.

Research by S&P Global Market Intelligence indicates that 36% of Ghana's gold production comes from small-scale miners.

Ghanaian President Nana Addo Dankwa Akufo-Addo announced Aug. 20 that he had approved the Minerals and Mining Amendment Act, which increases penalties for a person who buys or sells minerals without a licence or engages in illegal mining.

The president criticized the judicial system for not taking a hard enough stance against offenders, saying the law took away some of the discretion of the judges. "It's unfortunate that it should be so because all of us should be able to trust them to do their bit in stamping out crime and its consequences [to] our society," he said in a statement.

The country has battled for a number of years with illegal mining, introducing incentives for small-scale miners to register with the government.

The president has raised his concerns about the environmental damage caused by the miners, but the government is also losing revenue due to unlicensed mining operations. Market Intelligence research indicates that while small-scale gold mining has fallen by between 10% and 15% from a 2016 high of about 1.7 million ounces, artisanal production still remains at 1.5 Moz. Ghana produced an estimated 4.32 Moz of gold in 2018, according to Market Intelligence data.

Akufo-Addo said the country is also looking at strengthening its institutions to address the problems posed by illegal mining, adding that "many of these things that happen are [also] the result of delinquency on the part of the state itself."

In December 2018, Ghana lifted a 23-month ban on small-scale mining, allowing compliant companies to resume operations. The Ghanaian government said it would allow small-scale mining to resume for those whose mining concessions have been validated and passed the vetting process, which includes focusing on environmental stability. The government would continue to target illegal mining, it said. Ghanaian Environment Minister Kwabena Frimpong-Boateng said at the time the ban was lifted that the country would need US$29 billion to reclaim areas damaged by small-scale mining.