GoldBod commits to 2026 rollout of nationwide tracing system to fight galamsey – Life Pulse Daily

Introduction: Ghana Gold Board’s Landmark Move Against Illegal Mining

In a groundbreaking announcement, the Ghana Gold Board (GoldBod) has committed to launching a nationwide track-and-trace system by the first quarter of 2026 to combat galamsey, the illegal small-scale mining menace plaguing Ghana’s gold supply chains. CEO Sammy Gyamfi unveiled this initiative during a televised interview with TV3’s “Key Points” program, emphasizing its role in eradicating the infiltration of illicitly sourced gold into formal markets. This move aligns with Section 31X of the Gold Board Act (Act 1140), passed by Parliament in 2025, which mandates traceability for all gold transactions. With over 700 licensed gold buyers operating nationwide and allegations of systemic leakage into illegal networks, GoldBod aims to leverage technology to secure its supply chain and bolster compliance.

Analysis: The Challenges and Strategic Imperatives

The Scale of the Problem: Licensed Buyers and Systemic Gaps

GoldBod oversees a vast network of 700+ licensed gold buyers operating in regional and district capitals. While these brokers act as intermediaries between miners and the formal market, their decentralized operations create oversight challenges. As noted by CEO Gyamfi, many buyers procure gold off-site—often without direct access to mining locations—making it difficult to verify the legitimacy of origins. This gap has enabled galamsey operators to exploit the system, smuggling illegally mined gold into formal supply chains.

Legal Framework: Section 31X and Compliance Obligations

The Gold Board Act (Act 1140) mandates that all gold purchases must originate from licensed sources. Section 31X explicitly prohibits transactions with unlicensed miners, tasking GoldBod with rigorous due diligence. However, enforcement has historically been hampered by the informal nature of small-scale operations and insufficient technological infrastructure.

Countering Misinformation: Addressing Claims About Illegal Sources

Public advocate Kofi Bentil’s assertion that 85% of GoldBod’s gold purchases stem from illegal activities has been vehemently denied by the board. Gyamfi clarified that GoldBod only collaborates with the Ghana National Association (GNASSM) and its registered members, explicitly stating, “We do not engage with unauthorized miners.” Despite Pushback, the board emphasized its commitment to addressing accusations through legal channels and community engagement.

Summary: Key Takeaways from GoldBod’s Initiative

GoldBod’s 2026 track-and-trace system represents a pivotal step in Ghana’s fight against galamsey. By digitizing gold provenance, the system aims to:

• Verify the origin of every gram traded through 700+ brokers.
• Ensure compliance with Act 1140 through blockchain-like tracking.
• Reduce reliance on trust-based transactions vulnerable to fraud.

This initiative not only safeguards the formal supply chain but also supports national efforts to regulate the small-scale mining sector.

Key Points: GoldBod’s National Tracing System

• 📅 Rollout Timeline: Q1 2026 (Q1 2026).
• 🏭 Scope: Tracks gold from mines to buyers via geolocation and blockchain.
• ⚖️ Legal Basis: Rooted in Section 31X of the Gold Board Act (Act 1140).
• 📊 Source Breakdown: 20% from large-scale mines, 80% from licensed small-scale operators.

Practical Advice for Miners and Buyers

Steps for Small-Scale Miners to Ensure Compliance

1. Register with the Ghana National Association of Small-Scale Miners (GNASSM).
2. Install GPS-enabled equipment trackers for all mining activities.
3. Maintain digital records of gold production and sales.
4. Register as a licensed buyer through the GoldBod portal.

How Formal Buyers Can Authenticate Sources

Buyers should:

1. Verify diggers’ licenses via GoldBod’s online database.
2. Demand geo-tagged documentation of gold pickup locations.
3. Use the track-and-trace system’s dashboard to validate origins post-purchase.

Points of Caution: Risks and Challenges Ahead

Resistance from Informal Miners

The move may face pushback from unlicensed operators who lack formal documentation. Compliance could initially reduce market supply, affecting prices and livelihoods.

Technological and Logistical Barriers

Implementing a nationwide system requires:

• Training 700+ buyers on digital tools.
• Ensuring connectivity in remote mining regions.
• Investing in redundant servers to prevent data loss.

Legal Implications: Enforcement Under the Gold Board Act

Under Section 31X, GoldBod has the authority to:

• Suspend licenses for entities trading with unregistered miners.
• Impose fines exceeding 5% of transaction values for non-compliance.
• Collaborate with the Minerals Commission to prosecute fraud.

This framework underscores the risk of severe penalties for entities attempting to circumvent the system.

Comparisons: How Ghana Stacks Up Globally

While Ghana’s initiative mirrors strategies used in countries like South Africa and Botswana, its unique challenge lies in transitioning a largely informal economy to a digital compliance model. Unlike neighboring West African nations with centralized mining registries, Ghana’s decentralized broker network demands tailored technological solutions.

Conclusion: A New Era for Ghana’s Gold Sector

GoldBod’s track-and-trace system epitomizes the intersection of regulation, technology, and environmental responsibility. By prioritizing traceability, the board aims not only to curb galamsey but also to restore Ghana’s reputation as a reliable supplier of conflict-free gold. As the 2026 deadline approaches, stakeholders must prepare for a paradigm shift in mining governance.

FAQ: Answering Common Questions

How Does the Track-and-Trace System Work?

The system uses GPS, blockchain, and IoT sensors to log gold movement from mines to buyers, ensuring transparency at every stage.

What Happens to Unlicensed Miners Caught in the System?

Unregistered entities face prosecution under the Minerals and Mining Act, including fines and jail terms;

Will This System Affect Small-Scale Miners’ Profits?

While initial costs may impact margins, long-term compliance could enhance market access and pricing stability.