Africa’s Illegal Gold Mining Menace

Africa has around 30 per cent of the world’s mineral reserves, 8 per cent of the world’s natural gas, and 12 per cent of the world’s oil reserves. Gold is one of the continent’s most profitable mineral resources. In 2021, Africa produced 680.3 metric of gold. Yet, its people have not felt the profitability of gold. In 2024, approximately 429 million of its population live below the extreme poverty of $2.15. Since its population is approximately 1.4 billion, roughly a third of the population is extremely poor. Illegal gold mining is widespread in the continent and has significantly contributed to poverty and other problems such as organised crime, economic loss, and environmental degradation.

Illegal mining of gold creates an environment for organised crime to flourish in Africa. It generates enormous profits and is attractive to organised criminal groups. Moreover, its high-value-to-volume ratio creates anonymity and the ability to move financial assets globally quickly. Gold has a reliable inherent value and is a viable option to settle debts. This allows criminals to launder illegal proceeds from gold and turn them into legitimate commodities. According to the United Nations Office on Drugs and Crime, criminals are willing to pay 105-110 per cent above the international market price to launder illicit proceeds and access international banks and markets. African countries have struggled with illegal gold mining as organised criminal organisations get into illegal gold mining. For instance, in Nigeria, the Zamfara state police arrested two Chinese nationals for allegedly taking part in the illicit extraction of gold. In July 2023, the Economic and Financial Crime Commission of Nigeria arrested 13 Chinese nationals for allegedly partaking in the illegal mining of gold. Russians are also involved in illegal mining through the help of politicians and locals. Other African countries, such as South Africa,  struggle with this issue as well.

Illegal mining of gold has led to substantial economic loss for the continent. A non-governmental organisation, Swissaid, reported that  321-474 tons of gold produced from illegal mining go undeclared yearly. At least 435 tons of gold from illicit activities are smuggled out of the continent. These yearly undeclared and smuggled gold are valued between $24-$35 billion. This represents a substantial loss for African states. A country like Ghana loses $2 billion annually to illegal gold mining. Nigeria loses $1.8 billion to illegal mining of gold. Illegal gold mining presents a significant economic challenge to a continent that struggles with extreme poverty.

Illegal mining of gold destroys the environment and endangers nature and individuals. In the Central African Republic, waste from the illicit extraction of gold pollutes water bodies in the country, resulting in the loss of floras and faunas. Toxic chemicals such as mercury and cyanide result in air pollution, posing a threat to local communities where gold mining is illegal. It negatively affects the health of individuals. Likewise, Ghana has seen over 60 per cent of its water resources contaminated by toxic chemicals from illegal gold mining. This resulted in hundreds of Ghanaians taking to the streets and urging the government to crack down on illegal gold mining.

Existing and consistent policy goes a long way in preventing the illegal mining of gold. However, this is something that some African states struggle with. For instance, in Nigeria, the lack of coherent and consistent policies created chaos and allowed illegal gold mining to flourish. Weak enforcement of regulatory laws also gives way to the illegal mining of gold. The cumbersome process of obtaining a mining license allows unlawful gold mining to flourish. For example, acquiring a mining license in Ghana can take up to three years. However, the productive life span of small-scale mining is usually 6-18 months. These miners also do not have geo-prospecting knowledge and lack capital. Also, there is a disconnect between rules and the realities of mining. Some miners use different techniques and have various expertise in extracting minerals. For instance, in Ghana, the regulatory framework for small-scale miners is not adequately defined and classified. Subsistence miners who use rudimentary tools for mining are subject to the same framework as a person with a more sophisticated tool. Some are unaware of this and may think they may not require a license if their operational activities do not destroy water bodies. Illegal mining has been persistent in Africa because influential people are involved. In countries such as South Africa, there are politicians engaged in illegal gold mining, allowing it to continue relentlessly.

African countries need to make comprehensive, consistent, coherent policies around mining. This will mean having a good understanding of the difference between artisanal mining and small-scale mining. Some African countries, such as South Africa, do not have a proper distinction between artisanal mining and small-scale mining. In some other countries, such as Mali, there is a distinction between the two. In Mali, small-scale mining is distinguished from artisanal mining by a permanent fixed installation created once an ore body is formed. The lack of distinction makes room for illegal gold mining. Policymakers in African countries must work with researchers who have extensively studied the artisanal and small-scale mining sectors. This will help policymakers understand the difference and build a sound policy framework incorporating artisanal and small-scale mining. This will help curb illegal gold mining.

According to a study on obtaining a mining license, getting a mining license in Africa can be cumbersome. The process for getting a license should consider the short-term and long-term miners. Easing the process of getting a mining license, especially for small-scale miners, will help control and curb the issue of illegal gold mining in Africa. This can be done by implementing digitalisation and technology solutions to make the process easier. There should be proper vetting and registration of mining companies. Proper vetting and an adequate registration process will help guard against foreign companies involved in illegal gold mining. There should be transparency and stakeholder engagement. This allows people to understand the requirements for obtaining a mining license.

African countries must enforce existing laws on illegal gold mining and create coherent policies. In Nigeria, the Mineral and Mining Act of 2007  prohibits the exploration and exploitation of minerals without authority. There have been talks about amending the act. Such an amendment should incorporate ASM and clearly define what constitutes illegal mining. African countries should severely punish perpetrators of unlawful gold mining. In response to the protest, the Ghanaian government has implemented new measures to fight against the illegal mining of gold. These new measures should be reviewed to ensure that they effectively curb the gold mining issue. On the regional level, the Economic Community of West African States need to formulate a firm policy around the illegal mining of gold. ECOWAS should coordinate member states to fight against the illegal mining of gold and ensure that each member state complies with the legal framework against illegal gold mining.