The World Gold Council (WGC) and the Government of the Republic of Ghana signed a strategic memorandum of understanding (MoU) to strengthen cooperation on the formalisation of artisanal and small-scale gold mining (ASGM), enhance supply chain integrity, and combat illicit finance and gold flows.
Alongside the MoU, the WGC has committed a development grant of US$250,000 ($357,484) to support cooperative registration under one of the Government of the Republic of Ghana’s flagship programs, the Responsible Cooperative Mining and Skills Development Program (rCOMSDEP).
The two parties say the MoU reflects a shared commitment to the social and economic potential of responsible ASGM for the people of Ghana and for the overall integrity of the gold market.
Minister for Lands and Natural Resources, Republic of Ghana, Hon. Emmanuel Armah Kofi Buah (MP) says that the MoU reflects the country’s commitment to transforming artisanal and small-scale gold mining into a responsible and regulated sector that can economically empower Ghanaians.
“By working with the World Gold Council, we are strengthening our efforts to improve the formalisation of ASGM, eliminate harmful practices, and ensure that the benefits of Ghana’s gold resources are realised by our communities and our nation as a whole.”
World Gold Council CEO David Tait says that Ghana is demonstrating a real ambition in tackling the challenges and opportunities of ASGM.
“This MoU provides a strong platform for collaboration, bringing together government leadership, international standards, and industry expertise to help build a trusted, transparent, and responsible ASGM value chain that works for miners, communities, and markets alike.”
ASGM in Ghana
According to the Africa Centre for Strategic Studies, ASGM in Ghana generates more money than large-scale miners in the country. Approximately 70–80% of artisanal miners operate without a licence, supporting an economy spanning hundreds of thousands of miners, transnational financiers, foreign operations, gold smugglers, equipment suppliers, and others, who operate outside the law.
Governments in Ghana have in the past deployed military and police task forces to combat illegal ASGM — known locally as galamsey.
Illegal gold mining has become a national security threat, transforming from a localised livelihood activity into a sprawling illicit economy that often fuels violence.
A May report by the Global Community Engagement and Resilience Fund (GCERF) highlights the impact of the surge in gold prices over the past few years. It says higher prices have accelerated entry into illegal mining, expanded the financing capacity of illicit networks, and increased environmental destruction. It shows a clear correlation between gold prices and the violent activity seen in Mali and Burkina Faso.
The report notes that in Mali, a 10% rise in the world gold price lines up with one-third more violent extremist events in the country’s gold regions.
The GCERF highlights that eliminating galamsey to address these serious security challenges is unrealistic and potentially destabilising for the country. It does suggest other solutions for governing, formalising, and redirecting galamsey to prevent violence and radicalisation will help to create stability and economic development.
Why the MoU matters
This is where the WGC-Ghana MoU becomes strategically significant. By creating pathways for formalisation, the agreement creates a legal framework under which ASGM can operate, reducing opportunities for illicit actors and limiting the flow of untraceable gold into global markets.
The MoU is also a security intervention, supporting Ghana’s efforts to stabilise its mining regions, protect communities, and ensure that gold revenues benefit the nation rather than criminal networks.
Write to Amy Rotman at Mining.com.au
Images: Unsplash
