As global gold prices rise, African leaders want the wealth in the ground to benefit the people living on it, placing small-scale miners at the centre of Africa’s mining future.
By Conrad Onyango
African governments are rewriting outdated mining codes with recent moves of taking over gold mines from foreign companies and placing them under local or state control.
Part of these reforms includes legalising, formalising, and professionalising small-scale mining while cutting down significant shareholding by foreign investors to allow local communities to reap more benefits from an ongoing gold boom.
The sweeping reforms several governments have said are aimed at reclaiming greater control over their gold sectors and building equitable economies.
“We’re proposing a legal regime that allows indigenous people to own part of the business,” Ghana’s Deputy Minister of Lands and Natural Resources, Alhaji Yusif Sulemana, told attendants at the Mining in Motion 2025 Summit in Accra in early June.
Across Africa, artisanal and small-scale gold mining contributes a significant portion of national gold output, yet much of the activity remains informal, unregulated, and vulnerable to exploitation.
In Ghana, for instance, artisanal gold miners contribute over 35% of the country’s national share.
Since launching its Community Mining Scheme in 2023, Ghana continues to push for deeper structural reforms, including the creation of a new medium-scale mining category to bridge the gap between informal and industrial operations.
“We want miners to start small, adopt sustainable practices, and gradually move up. It’s about creating an ecosystem of growth and accountability,” said Sulemana.
The Community Mining Scheme (CMS) in Ghana operates within designated areas and is governed by structures such as Community Mining Oversight Committees (CMOCs), a code of practice, and support service providers.
The CMOCs play a key role in overseeing mining activities, registering licensed miners, enforcing legal compliance, and preventing illegal mining within their communities.
These committees ensure that miners operate in line with environmental regulations, protecting water bodies, forests, and farmlands from degradation.
According to Ghana’s Ministry of Lands and Natural Resources, 15 legal Community Mining Schemes have been commissioned across Ghana from 98 mining concessions, covering a total land area of 2,174.94 acres.
The scheme has generated around 60,000 direct and 22,800 indirect jobs, contributing to a total of 82,800 employment opportunities.
To strengthen regulation and maximise revenue, Ghana this year established the Ghana Gold Board, a new body tasked with overseeing and managing all gold and precious minerals activities.
The goal is to align the sector with international standards, enhance value addition, and bolster the country’s foreign exchange reserves.
“If we can convert a domestic asset into a tradable foreign asset, we can begin to build our gold reserves,” Bank of Ghana Risk and Foreign Reserves Management head Dr Steve Opata said during the event.
According to the World Gold Council Chief Executive Officer, David Tait, the artisanal and small-scale mining (ASM) sector now accounts for over 20% of global gold production from a paltry 4% in 1990. He said with this growth, the nascent sector requires urgent attention.
“With rising global demand and gold prices, illegal mining is on the rise – fuelling civil unrest, child labour and depriving governments of billions in revenue that could support development. There is a risk in slow policy responses,” said Tait.
Research from a Ghanaian scholar at the School of Environmental Studies at Queen’s University Canada noted that between 2008 and 2016, over 50,000 Chinese gold seekers migrated to rural Ghana to engage in illegal artisanal small-scale mining.
These illegal miners have become entrenched in Ghana’s ASM sector, often operating through corrupt arrangements with local chiefs and officials. They have repeatedly been accused of severe environmental pollution with over 60% of the country’s water bodies’ pollution linked to the activities of illegal miners.
In October 2024, China’s Zijin Mining Group acquired the Akyem gold mine project in Ghana from the US-based Newmont Corporation for US$1 billion, highlighting the significant involvement of Chinese and American companies in gold mining in Ghana.
Away from Ghana, other African countries are also taking the cue.
In Malawi, the government is investing in human capital and linking artisanal miners with financial institutions to grow formal, bankable enterprises.
“We are building capacity and linking ASM miners to banks so they can grow into formal enterprises,” said Malawi Minister of Mining Kenneth Zikhale Ng’oma.
The DR Congo said it is introducing tighter oversight and community-focused reforms.
“We have a new vision. One where we are adding more value to minerals and providing jobs. Environmental protection is also a top priority in ASM-operated areas,” said DRC Deputy Minister of Mines, Godard Motemona Gibolum.
African governments have also been increasingly asserting control over large-scale gold mining operations run by foreign companies.
In May, Guinea became the latest country to revoke four gold exploration permits from UK-based Endeavour Mining, citing inactivity and regulatory violations.
In October 2024, the Malian government nationalised the Yatela gold mine following a retrocession agreement with AngloGold Ashanti, the South African company, and Canada’s Iamgold, which each owned 40 per cent.
Mali held the remaining 20 per cent. The gold mine was transferred to the state-owned Mali Mineral Resources Research and Development Corporation.
In 2023, Mali passed a new mining code that increased the state’s stake in mining projects from 20% to 35%.
In August 2024, under Ibrahim Traore’s government, Burkina Faso struck a deal with Lilium Mining Company to acquire and nationalise the Boungou and Wahgnion gold mines for US$80 million. These mines were previously owned by London-listed Endeavour Mining, which had agreed to sell them to Lilium Company in 2023 for US$300 million.
After introducing a gold-backed digital currency in 2024, Zimbabwe has intensified its support for small-scale miners.
The Zimbabwean government launched a US$23.7 million project called Planet Gold last year to reduce mercury use in gold extraction across mine sites in the country. Mercury has been linked to damage to the lungs, skin, and eyes.
In Zimbabwe, government data indicates that over 300,000 people work in artisanal gold mining, with this sector contributing more than 40 per cent of the country’s mineral exports.
These moves come amid bullish forecasts for gold by Goldman Sachs Research, which predicts prices to reach US$3,700 per troy ounce by the end of 2025 and possibly US$3,880 if a recession triggers a rush to safe-haven assets.
bird story agency
African countries are implementing significant mining reforms to ensure that rising global gold prices benefit local communities. Governments are revising mining codes, placing mines under state control, and reducing foreign ownership to favor local stakeholders. This includes legalizing and formalizing small-scale mining, seen as crucial in regions like Ghana, where artisanal miners contribute significantly to national gold output. Ghana, for example, has introduced the Community Mining Scheme to professionalize small-scale activities, establish regulatory oversight, and enhance accountability in mining practices.
Additionally, Ghana has launched the Ghana Gold Board to oversee gold activities and strengthen revenue generation by converting domestic gold assets into tradable foreign resources. Broader concerns about illegal mining and environmental degradation are also taken seriously. In countries like Malawi, artisanal miners are being connected to financial systems to build formal enterprises. The Democratic Republic of the Congo is enhancing regulatory focus on value addition and environmental protection in mining activities.
This shift towards local control is visible beyond Ghana, with countries like Mali and Burkina Faso nationalizing mines and increasing state stakes in mining projects. Initiatives like Zimbabwe’s Planet Gold project aim to support small-scale miners and mitigate environmental damage from mercury use. These collective efforts align with bullish gold market forecasts, signaling increased governmental efforts to harness potential economic benefits for African nations.
These moves aim to convert domestic mineral wealth into sustainable economic development, protect the environment, and create jobs while addressing potential challenges like illegal mining and foreign company dominance in the gold mining sector.
