In a major move to strengthen control over its gold sector, Ghana has barred all foreign nationals from participating in its local gold trading market, according to a report.
The directive, issued by the newly established Ghana Gold Board (GoldBod), is part of a broader legislative overhaul designed to boost government revenue, combat illegal mining, and enhance oversight of the country’s artisanal and small-scale gold mining industry.
The Ghana Gold Board Bill, which led to the creation of GoldBod, was passed by Parliament on March 29 and signed into law by President John Mahama on April 2. Under the new law, all previous licenses—except those issued to large-scale mining firms—are now void.
“Foreign nationals must exit the local gold market by April 30, 2025,” said GoldBod spokesperson Prince Kwame Minkah. He warned that any individual or company trading gold without a GoldBod-issued license beyond that date would face legal consequences.
GoldBod is now the sole authority responsible for overseeing all gold purchasing, selling, and exporting in Ghana. While foreigners can still apply to purchase gold through GoldBod, they are no longer allowed to directly operate within the domestic gold value chain.
As Africa’s top gold producer and the world’s sixth largest, Ghana has long faced challenges in turning its mineral wealth into widespread economic benefits. Authorities view the reforms as crucial to capturing more value from gold production—particularly from artisanal miners, whose activities generate nearly $5 billion in annual exports.
In March, Finance Minister Cassel Ato Forson announced a $279 million allocation to GoldBod to acquire and export at least 3 metric tons of gold weekly from artisanal miners. All transactions will be conducted in Ghanaian cedis and priced based on Bank of Ghana rates—a strategy intended to boost foreign exchange reserves and stabilize the cedi.
Combating Illegal Mining and Foreign Involvement
While the reform is primarily aimed at revenue generation, it is also expected to help curb illegal mining—known locally as “galamsey”—and its associated environmental damage. Unregulated mining has caused extensive deforestation, mercury contamination, and pollution of over 60 percent of Ghana’s water bodies.
Foreign nationals, particularly Chinese, have often been linked to illegal mining operations. Though the new legislation does not single out any nationality, it effectively limits foreign participation in potentially illicit gold trade.
Limited Impact on Large Mining Firms
The new policy does not affect large-scale mining companies, whose licenses remain valid. Ghana holds a 10 percent free carried interest in these regulated mines.
Major gold companies with operations in Ghana include:
- Kinross Gold – Chirano mine
- Galiano Gold – Asanko mine
- Gold Fields – Tarkwa mine
- Asante Gold – Chirano and Bibiani mines
- Newcore Gold – Enchi gold project
Gold Fields to Shut Down Damang Mine
In a related development, Gold Fields has announced the closure of its Damang mine following the government’s refusal to renew its mining lease. Though mining at Damang had already ended in 2023, the company had continued processing stockpiles and sought an extension as part of its mine closure plan.
“The government has directed Gold Fields to cease operations and vacate the lease area by April 18,” the company said in a statement. Damang contributed 135,000 ounces of gold in 2024, accounting for about 6 percent of the company’s total production. Operations at the company’s Tarkwa mine will continue.