ECONOMIC PRESSURES
With rising central bank gold buying and broader geopolitical tensions
potentially pushing gold to $5,000 an ounce, Sahel-focused security and mining analyst Ulf Laessing warned that more violent confrontations around mining operations could be expected in the coming months.
"The more the gold price rises, the more conflicts we will see between industrial and informal miners," said Laessing, head of the Sahel program at Germany's Konrad Adenauer Foundation.
A surveillance drone is seen inside a control room at Ghana's Minerals Commission in Accra, Ghana, April 13, 2025. REUTERS/Francis Kokoroko
Nine wildcat miners were shot dead in January at AGA's Obuasi mine in Ghana when they cut open the fenced 110-square kilometer concession to scavenge gold, according to a source in the company who asked not to be identified.
At AGA's Siguiri Mine, northeast of Guinea, hundreds of wildcat miners invaded the concession in February, prompting military intervention, according to a source familiar with the mine's operations.
At least three wildcat miners were shot by guards while others were injured at Newmont’s Ahafo gold mining site in northwestern Ghana in January, police said.
In Mali's gold-rich Kayes region, an excavator operator at an illegal mining site in Kenieba told Reuters that operations have expanded rapidly this year, with Chinese bosses deploying more equipment to new sites as gold prices climb. Reuters could not establish who such Chinese operators were, or whether they have any links to companies or official organizations.
This year, Ghanaian authorities have been ransacking dozens of informal mining sites, arresting hundreds of locals and foreigners, particularly Chinese nationals, who operate unregulated gold operations in the country's vast forests, including protected areas and bodies of water.
"Because of porous borders and weak regulations, the majority of their produce is smuggled," says Marc Ummel, researcher at Swissaid, "depriving the countries of the full benefits."
Ghana lost more than 229 metric tons of largely artisanal gold to smuggling between 2019 and 2023, according to Swissaid, which analysed export data within the period.
Adama Soro, president of the West African Federation of Chambers of Mines, said artisanal miners also compete with large-scale miners for ore, shortening mines' lives. "We're seeing artisanal miners digging up to 100 meters and impacting the ore body of the big miners, so we're losing money," he said.
Masked security personnel prepare for an anti-illegal mining operation at the Gold Fields Mine in Tarkwa, Ghana, April 10, 2025. REUTERS/Francis Kokoroko
ARMED MILITARY PROTECTION
Miners are resorting to unconventional methods and increased spending at the expense of investment and community projects, said the head of a mining company in Ghana heavily affected by wildcat miners.
The mine spends approximately half a million dollars annually on measures, including drone surveillance to combat wildcat mining, but still experiences frequent attacks, the source said.
Nordgold, Galiano Gold
(GAU.TO)B2Gold
(BTO.TO)and Barrick Gold
(ABX.TO) have all seen incursions recently.
Ghana's major corporate miners have intensified their campaign for military protection at mining sites this year. Similar requests have been made in Burkina Faso and Mali, according to three mining executives and an industry analyst, who requested anonymity.
"Ideally, we want military presence at all mining operations, but we understand the need to prioritize sites facing consistent attacks while implementing regular patrols at others," said Ahmed Dasana Nantogmah, chief operating officer of Ghana's Chamber of Mines.
Industry leaders met government officials in mid-April to press their case, with discussions yielding "positive" results, said Nantogmah.
Ghana's government did not respond to requests for comment.
Ghanaian authorities want miners to cover deployment costs, estimated at 250,000 Ghana cedis ($18,116) per contingent daily of under 50 personnel, said two mining executives who were part of the negotiations.
Ghana's mining sector regulator, the Minerals Commission, is taking a technological leap forward, establishing an AI-powered control room to analyze data from 28 drones deployed to illegal mining hotspots. The system includes trackers on the excavators and a control system that can remotely disable excavators operating outside authorized boundaries.
"This is a fight we can win with technology if we allow full deployment," says Sylvester Akpah, consultant for Ghana's mining sector regulator's drone surveillance and AI-powered project.
Source: Reuters