Ghana is a major gold producer in Africa, and the dore gold trade is a significant part of the country’s economy. Dore gold is a semi-refined form of gold that is produced at gold mines. It is a mixture of gold, silver, and other metals, and it must be further refined before it can be used in jewellery or other products.
The dore gold trade in Ghana is a complex and often unregulated industry. There are a number of different actors involved in the trade, including miners, traders, refiners, and exporters. The trade is also subject to a number of challenges, including smuggling, corruption, and environmental damage.
Despite the challenges, the dore gold trade is an important part of the Ghanaian economy. It provides jobs for thousands of people and generates billions of dollars in revenue each year. The trade also helps to finance the development of Ghana’s infrastructure and social programs.
The History of the Dore Gold Trade in Ghana
The dore gold trade in Ghana has a long history. Gold has been mined in Ghana for centuries, and the first recorded exports of dore gold from the country date back to the 16th century. The trade grew significantly in the 19th century, and Ghana became a major supplier of gold to Europe and the United States.
The dore gold trade declined in the 20th century, but it has rebounded in recent years. This is due to a number of factors, including the discovery of new gold deposits, the rise in gold prices, and the increasing demand for gold from emerging markets.
The Actors in the Dore Gold Trade
The dore gold trade in Ghana involves a number of different actors. These include:
- Miners: Gold Miners are the people who extract gold from the ground. They are typically small-scale miners who work in informal mines.
- Traders: Gold Traders buy dore gold from miners and sell it to refiners or exporters. They often operate in the informal sector and are not subject to government regulation.
- Refiners: Refiners process dore gold to remove impurities and produce pure gold. They are typically large, multinational companies that operate in the formal sector.
- Exporters: Exporters sell refined gold to buyers in other countries. They are typically large, multinational companies that operate in the formal sector.
The Challenges of the Dore Gold Trade
The dore gold trade in Ghana faces a number of challenges. These include:
- Smuggling: Dore gold is often smuggled out of Ghana by corrupt officials and miners. This deprives the government of revenue and undermines the formal economy.
- Inbound Smuggling from neighbouring countries that is considered illicit gold.
- Corruption: The dore gold trade is awash in corruption. Bribery and extortion are common, and this undermines the rule of law and economic development.
- Environmental damage: Gold mining can have a devastating impact on the environment. Mercury is often used to extract gold, and this can pollute water supplies and harm wildlife.
Ghana Gold Smuggling
In an investigative report by Aljazeera, it was revealed that a gold smuggler named Alistair Mathias claimed to be able to smuggle $40 million worth of gold out of Ghana every month. The undercover journalists, posing as Chinese criminals, discovered this information during their investigation into gold smuggling in Africa, titled “Gold Mafia“. The activities of gold smugglers in Ghana are well known, but little is known about effective countermeasures to stop these illegal activities
Ghana’s Upcoming LBMA Certified Refinery Marks a Milestone in Gold Industry
Ghana is set to establish a new refinery for the Artisanal Small-Scale Mining (ASM) sector, with support from the London Bullion Marketing Association (LBMA). The Deputy Minister for Lands and Natural Resources in charge of mining, George Mireku Duker, revealed these plans on April 29, 2023. Once established, the refinery will be LBMA-certified, ensuring that it adheres to the highest standards in the industry. This development aims to support the ASM sector in Ghana and promote responsible gold sourcing and refining practices.
The Future of the Dore Gold Trade
The future of the dore gold trade in Ghana is uncertain. The trade faces a number of challenges, but it also has the potential to be a major source of economic growth and development. The government of Ghana needs to take steps to address the challenges facing the trade, such as smuggling, corruption, and environmental damage. If the government is successful, the dore gold trade can be a major engine of economic growth for Ghana.
