Home Headlines Ghana Partner LBMA to Elevate Small-Scale Gold Mining on Global Stage

Ghana Partner LBMA to Elevate Small-Scale Gold Mining on Global Stage

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The government of Ghana is set to form a strategic partnership with the London Bullion Market Association (LBMA), supported by the UK-Ghana Gold Programme (UKGGP), to enhance global market access for small-scale miners.

This collaboration aims to unlock substantial opportunities for Ghana’s mining sector, potentially tapping into a market valued at over $1.5 billion annually.

A recent study by the Ghana Chamber of Mines indicates that the small-scale mining sector contributes about 35% of the country’s total gold output. However, many small-scale miners face challenges accessing international markets due to lack of compliance with global standards. The LBMA partnership seeks to address these issues by providing technical support and training to ensure adherence to responsible mining practices.

In a press release issued on Wednesday, June 5th, the LBMA highlighted the significant economic and environmental benefits of this initiative. The association emphasized that miners adhering to LBMA standards could reduce environmental harm by implementing sustainable mining techniques. “This partnership could address environmental concerns associated with unregulated mining, safeguarding community well-being,” the statement read.

Research from the University of Ghana’s Institute for Environment and Sanitation Studies has shown that unregulated mining activities have led to severe environmental degradation, including deforestation and water pollution, in mining communities. By aligning with LBMA standards, the initiative aims to mitigate these adverse impacts.

The release also highlighted the growing momentum for mining regulation reforms. The Shared Prosperity Initiative advocates for reinvesting mining royalties into community development projects. Data from the Ghana Extractive Industries Transparency Initiative (GHEITI) reveals that in 2022, approximately $200 million in mining royalties were collected, with a significant portion earmarked for local development.

As the LBMA delegation visits Ghana, there is optimism for a positive transformation in the mining sector. Enhanced access to global markets could significantly boost economic prosperity. According to the World Bank, improved market access could increase Ghana’s gold export revenues by up to 20%, translating to an additional $300 million annually.

Gregory Mthembu-Salter, a consultant for the LBMA, expressed confidence in the initiative, stating, “We are encouraged by the government’s evident commitment and the substantial groundwork already laid.”

Mthembu-Salter highlighted the importance of continuous improvement in the supply chains used by Good Delivery List refiners. He noted that such improvements would enhance miners’ livelihoods and mitigate environmental hazards. “Adhering to these standards would enable Ghanaian producers and aggregators to access formal, global markets,” he added.

However, he cautioned that this opportunity comes with significant responsibilities. “The gold must be legally and responsibly mined and traded. We are sure there are many ready to take up the challenge, and we look forward to engaging with them,” Mthembu-Salter stated.

The LBMA’s initiative is viewed as a significant step forward in promoting sustainable and ethical mining practices in Ghana, promising long-term benefits for the country’s gold industry.

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