October 10, 2024

Alchemist | Bitesize: LBMA Makes Strides Towards ASM Goals in Ghana

Alchemist | Bitesize - delivered digitally - explores the latest hot topics which complement existing or upcoming content in the usual Alchemist publication cycle, which we feel deserve a little extra focus.

As part of LBMA’s work to encourage the share of responsible ASM gold in the market, and promote responsible engagement with ASM gold producers, we identified seven key regions with significant quantities of legal and responsible ASM gold. Our aim is to facilitate the increase of the presently small proportion of ASM gold going to LBMA’s GDL member refineries, with a view to supporting the livelihoods of miners. The regions – Colombia, Peru, Ghana, Côte d’Ivoire, Senegal, Tanzania, and Philippines – were also chosen thanks to their good prospects of legal and responsible ASM gold production, processing and refining.

I recently visited Ghana and I am pleased to share positive findings.

Outreach visits have been conducted, alongside Gregory Mthembu-Salter (Consultant for LBMA) and Dr Tom Salter (Consultant for Phuzumoya Consulting), aimed to bring together stakeholders with a joint interest in making legitimate precious metal supply chains work, and to explore the benefits this would bring to the Ghanaian – and wider – market.

OUTREACH VISITS AIMED TO BRING TOGETHER STAKEHOLDERS WITH A JOINT INTEREST IN MAKING LEGITIMATE PRECIOUS METAL SUPPLY CHAINS WORK AND EXPLORE THE BENEFITS THIS WOULD BRING TO THE WIDER MARKET.

In June this year, we accompanied MKS PAMP and Rand refineries in their ongoing due diligence and evaluation of Small-Scale Mines (SSM) and Community Mining Schemes (CMS). The key findings from our visit were reported back to the ASM Task Force – and, I’m pleased to say, were encouraging.

On our visit, we gained a strong understanding of what the Bank of Ghana (BoG) and Minerals Income Investment Fund (MIIF) are doing in the SSM gold space and we strengthened our relationship with the UK Home Office-funded UK Ghana Gold Programme (UKGGP). We engaged with the Ghanaian National Association of Small Scale Miners (GNSASSM) on its role in facilitating the flow of responsibly-mined CMS and SSM gold to the Good Delivery Refineries. Our talks with government stakeholders – both national and international – were also fruitful, and have set the scene for solid cooperation and transparency in the months and years to follow.

In addition, meeting with the main LSM producers in Ghana and the World Bank has been essential in allowing us to understand and explore potential synergies with our work. Our ASM toolkit proved extremely useful during our visit.

During our time in Ghana, Gregory and I discovered that LSM attitudes to ASM/SSM are evolving, which we anticipate will open up exciting opportunities for the local industry and the wider global supply chain.

Deputy Minister of Lands and Natural Resources (MLNR) Honourable George Duker, discussing operations with Neil Harby at the processing of gold bearing ore by the Kacha machine.

Next Steps

Our work with UKGGP and government stakeholders – including BoG, PMMC, Minerals Commission, and MIIF – will continue, together with GDL refiners and state agencies.

ASM Goals

This outreach trip forms a crucial part of LBMA's goal to incorporate more ASM material into the global precious metals supply chain. This work aims to bring individuals involved in small scale mining into the premium global gold supply chain. Our programme of activity continues with Peru, as we visit later this year with PX Precinox and the Swiss Better Gold Association to explore the synergies in this region.

Read more about our key deliverables relating to ASM in Focus Area Three of our Sustainability and Responsible Sourcing Strategy.

You can read more about our Ghana outreach in the next issue of the Alchemist, out next week.

By Neil Harby, Chief Technical Officer (LBMA)

Neil Harby

CChem – Chief Technical Officer

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