The Ghana Gold Board (GoldBod)

GoldBod: Transforming Ghana's Gold Trading Sector

The Ghana Gold Board (GoldBod), established on April 2, 2025, represents a significant milestone in Ghana's precious minerals management. As the sole authority with exclusive rights to buy, sell, weigh, grade, assay, value, and export gold and other precious minerals in Ghana, GoldBod functions under the oversight and supervision of the Ministry of Finance of the Republic of Ghana. This institution has been carefully designed to revolutionize the country's gold trading sector, combat smuggling, promote value addition, and maximize returns on Ghana's natural resources.

Vision, Mission, and Core Values

GoldBod operates with a clear vision: "To be a world-class gold trading organization, promoting sustainability, traceability, and value addition for economic transformation." This vision underscores the organization's commitment to excellence in precious minerals trading, which is further reflected in its comprehensive mission.

The organization's mission encompasses overseeing, monitoring, regulating, and undertaking trading, assay, export, and related activities for gold and precious minerals. GoldBod is dedicated to promoting value addition, combating gold smuggling, supporting small-scale miners, and implementing sustainability initiatives. The ultimate goal is generating foreign exchange for Ghana while supporting gold reserve accumulation by the Bank of Ghana.

Core Values

• Integrity: All transactions are managed with the highest regard for integrity and best corporate governance practices, fostering mutual trust with clients.
• Customer Orientation: The organization understands client perspectives, provides prompt responses to feedback, and prioritizes diverse customer needs.
• Innovation: GoldBod embraces cutting-edge technologies to develop better solutions that meet evolving market needs and trends.
• Transparency/Accountability: The organization functions as a team with stakeholders in a transparent, competitive, and accountable ecosystem to achieve its objectives.

Historical Evolution

The Ghana Gold Board represents the culmination of decades of evolution in Ghana's precious minerals management. Its history traces back to 1963 with the establishment of the Ghana Diamond Marketing Board, initially charged with purchasing and marketing Ghana's diamonds.

In 1965, Legislative Instrument (LI) 401 incorporated the Ghana Diamond Marketing Board as a State-Owned Enterprise. Following the diamonds decree (NRCD 32) in 1972, LI 916 changed the company's name to Diamond Marketing Corporation.

By 1989, PNDC Law 219 transformed the entity into the Precious Minerals Marketing Corporation with expanded functions to grade, assay, and value gold, diamonds, and other precious minerals. In 2000, the corporation was converted to a Limited Liability Company under the Statutory Corporations Conversion to Companies Act (Act 461), operating as Precious Minerals Marketing Company (PMMC) Limited. The PMMC was appointed the national assayer by the government of Ghana in 2016.

To strengthen industry regulation and optimize national benefits, GoldBod was established as part of a strategic initiative to restructure and streamline Ghana's precious mineral trading sector. Section 78 of Act 1140 stipulates that GoldBod would take over the rights, obligations, assets, liabilities, and workforce of the PMMC.

Legal Framework: Ghana Gold Board Act (Act 1140)

The Ghana Gold Board Act, 2025 (Act 1140) provides the legal foundation for GoldBod's operations. This comprehensive legislation outlines the Board's establishment, functions, governance structure, and regulatory powers. The Act stipulates that GoldBod has the sole authority to:

• Grade, assay, weigh, and value gold produced in, brought into, or exported from Ghana
• Purchase and sell gold produced by miners other than large-scale miners
• Export gold produced by mining companies other than large-scale mining companies

The organization is governed by a Board of Directors consisting of a chairperson nominated by the President, the Chief Executive Officer, representatives from the Ministries of Mines and Finance, the Bank of Ghana, the Minerals Commission, large-scale mining firms, small-scale miners, gold service providers, and four other persons with specialized knowledge.

Licensing Framework

GoldBod serves as the sole authority empowered to license all persons engaged in gold trading and related businesses in Ghana. Effective April 23, 2025, GoldBod offers four primary license categories:

• Aggregator License: Required for the purchase, aggregation, and supply of gold to GoldBod with seed financing from GoldBod.
• Self-Financing Aggregator License: Required for the purchase, aggregation, and supply of gold to GoldBod with financing from the aggregator.
• Buyer License (Tier 1): Required for purchasing gold from miners with the buyer's funds for onward sale to licensed Tier 2 buyers.
• Buyer License (Tier 2): Required for purchasing gold from miners or Tier 1 buyers with financing from the buyer or a licensed aggregator for onward sale to an aggregator.

Additional license categories scheduled for implementation in July 2025 include Refining License, Smelting License, Importation License, Fabrication License, Storage License, and Transportation License.

Advance Payment Guarantee Requirements

Applicants for an Aggregator License from GoldBod must provide:

• A Bank Guarantee or an Advance Payment Guarantee from a recognized financial institution to secure the funds sought from GoldBod as trade capital.
• A Counter Indemnity instrument to accompany the Advance Payment Guarantee.
• An Advance Payment Guarantee conforming to the template provided by GoldBod.

The guarantee serves as security for the advance payment provided by GoldBod as trade capital for purchasing, aggregating, and supplying gold.

Operational and Pricing Requirements

A critical aspect of GoldBod's regulatory framework is the pricing obligation imposed on licensees. All licensees must purchase and/or sell gold strictly at the official price determined and published by GoldBod. The organization has directed all gold traders to buy and/or sell gold at the official Bank of Ghana (BoG) Reference Rate published on www.bog.gov.gh.

This standardized pricing mechanism has positively impacted the local gold market by creating transparency and fair trade practices. It has also helped eliminate the activities of scammers and brokers who previously sought gold deals with unrealistic discounts.

The Chamber of Bullion Traders Ghana (CBTG) has reached an agreement with GoldBod on the pricing mechanism, demonstrating the collaborative approach taken by the organization in policy implementation.

Support for Small-Scale Miners

Section 25 of the Ghana Gold Board Act mandates that the Board shall earmark not more than thirty percent of its surplus funds each year to provide support to small-scale miners. These funds are used to:

• Provide concessional funds and guarantees to licensed small-scale miners
• Facilitate the provision of modern and environmentally sustainable mining equipment
• Fund training and capacity-building programs for responsible mining practices
• Facilitate the establishment of gold processing and refining facilities
• Fund research into sustainable mining techniques and new technologies
• Promote the formalization of the small-scale mining industry

Recently, small-scale miners engaged GoldBod's CEO on pricing concerns and presented a detailed list of equipment needs to support safer and more efficient operations. More information about these initiatives can be found at the Ghana National Association of Small-Scale Miners website.

Corporate Social Responsibility

GoldBod demonstrates a strong commitment to corporate social responsibility, aligning its operations with global standards by supporting the UN Sustainable Development Goals (SDGs), respecting human rights, promoting diversity, and contributing to societal wellbeing. The organization's social interventions focus on four key areas:

• Education: GoldBod places importance on constructing and upgrading school facilities to enhance the quality of learning outcomes.
• Social Infrastructure: The organization prioritizes building potable water systems, electrification projects, roads, and other social amenities to enhance living conditions for vulnerable communities.
• Assisting Mining Communities: GoldBod invests in land and water reclamation activities and empowers mining communities with projects that promote poverty alleviation, alternative livelihoods, and sustainable development.
• Health: The organization supports wellness initiatives and undertakes critical health projects to prevent diseases and enhance access to quality healthcare for vulnerable populations.

Enforcement and Anti-Smuggling Measures

The Ghana Gold Board Act provides robust enforcement mechanisms to combat gold smuggling and other illegal activities. According to Section 49, GoldBod collaborates with relevant institutions to:

• Conduct random audits of gold service providers
• Deploy enforcement teams at strategic border points and export terminals
• Utilize drone surveillance and artificial intelligence-driven monitoring to detect illegal movement of gold

Individuals found guilty of smuggling gold face severe penalties, including fines or imprisonment.

Contact Information and Social Media Presence

GoldBod's head office is located at Diamond House, Kinbu Road, Accra Central, Ghana. The organization can be contacted via:

• Email: info@goldbod.gov.gh
• Phone: +233 030 295 3279 / 84

Follow GoldBod on social media:

Conclusion

The Ghana Gold Board represents a significant advancement in Ghana's approach to managing its precious mineral resources. The institution plays a pivotal role in streamlining operations in the gold sector, combating illegal mining and trading activities, and maximizing returns on Ghana's natural resources. By centralizing authority, implementing robust regulatory frameworks, and promoting responsible practices, GoldBod is positioning Ghana to maximize the benefits of its gold resources while ensuring sustainability and equitable distribution of value.

As stipulated in the Ghana Gold Board Act, GoldBod's establishment marks a new era for Ghana's gold trading industry, with greater emphasis on transparency, accountability, and value addition. Through its licensing framework, support for small-scale miners, corporate social responsibility initiatives, and anti-smuggling measures, GoldBod is set to transform Ghana's gold sector and contribute significantly to the country's economic development.