At an unlicensed gold mine in Ghana’s Prestea-Huni Valley, men sift through pools of mercury-laden water, seeking precious ore in a risky business that’s thriving alongside the country’s rising gold prices.
Known locally as “galamsey,” the illegal mining industry has expanded rapidly in 2024, contributing to both Ghana’s informal economy and significant health and environmental dangers.
Driven by a 30% surge in global gold prices, small-scale mines in Ghana produced 1.2 million ounces of gold in the first seven months of this year—surpassing total output from 2023.
The country, Africa’s largest gold producer, now sees around 40% of its total gold production coming from small-scale operations, with as many as 80% of those mines operating without licenses.
Despite their output, most of the gold is smuggled out, according to Ghana’s Minerals Commission, contributing little to the nation’s formal export revenue.
Martin Ayisi, head of the Minerals Commission, sees rising gold prices as a potential economic lifeline for Ghana, which received a $3 billion IMF bailout last year.
“We could double our national gold export revenues to $10 billion and potentially exit the IMF program earlier,” Ayisi said.
However, industry analysts suggest that the illegal sector contributes far more to national revenue than official reports indicate, blurring the lines between formal and informal mining.
Environmental and Health Catastrophes Loom
While Ghana’s gold boom may provide a financial boost, it’s not without significant costs. Illegal miners, lacking proper safety equipment, are exposed to toxic chemicals like mercury and nitric acid, which are often dumped into rivers, contaminating 65% of the country’s water sources.
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The rise in respiratory diseases and early deaths among miners and nearby residents is becoming a public health crisis.
Moreover, thousands of acres of cocoa plantations and virgin forests have been destroyed by illegal mining, threatening both the environment and Ghana’s agricultural economy. Public outcry is growing, with protests in Accra calling on the government to act.
“Galamsey has to stop,” said one protester, criticizing President Nana Akufo-Addo’s administration for failing to resolve the crisis.
Organized Crime and Corruption Entrenched
Despite repeated government crackdowns on illegal mining, galamsey persists, bolstered by organized crime networks.
The head of a British-backed regulatory program, Chris Aston warned that crime syndicates are funding miners upfront in exchange for gold at reduced rates, further entrenching the black-market economy.
In addition, the illicit mining trade has fueled gun trafficking, with criminal groups and local elites profiting from the business.
As Ghana prepares for its upcoming general election in December, galamsey remains a top issue for voters.
Both leading candidates, Vice President Mahamudu Bawumia and former President John Mahama, have pledged to formalize the sector, but experts say entrenched corruption may prevent meaningful reform.
“The problem is systemic,” said Emmanuel Kwesi Anning, a security consultant. “It’s an elite consensus—they won’t touch this business.”
With rising gold prices offering a potential economic windfall and organized crime deepening its grip, Ghana faces a difficult balancing act between its financial future and its environmental and social well-being.
