The Ghana Gold Board (GoldBod) is set to implement a national gold traceability system this year, according to its CEO, Sammy Gyamfi. The system will track gold purchased from small-scale miners, helping the country to formalise its gold production and comply with international responsible-sourcing standards.
Gold Traceability System to Begin Implementation This Year
Ghana's current gold traceability system is non-existent, making it difficult for GoldBod to determine the proportion of gold purchased from small-scale miners that was responsibly mined. Mr Gyamfi revealed this during an interview, stating that 27 companies had submitted bids for the traceability system, with the process now narrowed down to about 17 companies following the completion of the technical evaluation.
The new system will enable GoldBod to trace every gram of gold it purchases and sells back to its mine of origin, providing information on whether the source is licensed, how the gold was produced, whether mercury was used, and whether child labour was involved. The system's broader objective is to strengthen Ghana's ability to access premium international markets, including the London Bullion Market Association (LBMA), and secure better prices for the country's gold.
Small-Scale Miners to Be Onboarded onto the System
The onboarding of eligible small-scale miners onto the system is expected to begin this year, according to Mr Gyamfi. The process involves a national competitive tendering process to acquire the necessary traceability technology, followed by the onboarding of eligible licensed small-scale miners or registered cooperatives. The system is expected to eventually enable GoldBod to access premium international markets and secure better prices for Ghana's gold.
Ghana's gold production is dominated by small-scale mining, with the sector producing 3.1 million ounces of gold in 2023, compared to 2.8 million ounces produced by the large-scale mining sector. However, the absence of a formal traceability system has made it difficult for GoldBod to determine the proportion of gold purchased from small-scale miners that was responsibly mined. The new system aims to address this issue and bring Ghana's small-scale mining supply chain into compliance with international responsible-sourcing standards.
What's Next for Ghana's Gold Industry?
The implementation of the gold traceability system is expected to begin in the coming months, with Mr Gyamfi stating that the process will not go beyond this year. The system's success will depend on the effective onboarding of eligible small-scale miners and the provision of necessary support to the sector. If successful, the system will help to strengthen Ghana's gold industry and secure better prices for the country's gold.
Source: Joy Online
