In a historic shift that redefines the structure of Ghana’s gold industry, small-scale mining has overtaken large-scale operations to become the country’s leading source of gold production for the first time in over a century of commercial mining. According to the Ghana Chamber of Mines, the artisanal and small-scale sector contributed 52.4% of national output in 2025, propelling total production to a record 5.94 million ounces—a 23.4% jump from 4.82 million ounces in 2024.
The revelation, made by Christopher Nyarko, Director of Analysis, Research and Finance at the Chamber, during an interview on Channel One TV’s The Point of View, marks a watershed moment for an industry that has long been dominated by multinational industrial miners. “This is the very first time we are seeing this in more than 100 years of mining in the country,” Nyarko said, noting that the shift carries profound implications for government revenue, governance, and employment.
Sectoral Breakdown: A Tale of Two Trajectories
The Chamber’s 2025 industry assessment paints a stark picture of diverging fortunes. Small-scale gold production surged by 63.8%, rising from 1.90 million ounces in 2024 to 3.11 million ounces in 2025. In contrast, large-scale production declined by 2.98%, slipping from 2.92 million ounces to 2.83 million ounces over the same period. As a result, the large-scale sector’s share of national output fell from 60.6% to 47.6%.
Nyarko attributed the large-scale decline to several factors: aging mines with declining ore grades, rising operational costs, and a slowdown in new project development due to global uncertainty and local regulatory hurdles. Meanwhile, the small-scale boom has been fuelled by historically high gold prices—often exceeding $2,000 per ounce—which have drawn thousands of new entrants into the sector, alongside improved access to equipment and informal financing.
Economic Impact: Export Earnings Soar, but State Revenue Lags
The record gold output delivered a massive boost to Ghana’s mineral export earnings, which reached approximately US$21.32 billion in 2025—a figure that Nyarko noted was “95% attributable to gold.” Crucially, the small-scale sector alone accounted for nearly 53% of that gold export value, meaning artisanal miners are now the single largest foreign-exchange earners in the country.
However, Nyarko struck a cautionary note. Despite the sector’s growing contribution to exports, government receipts have not kept pace. The Chamber’s data shows total payments to government from the mining industry stood at GH¢24.22 billion in 2025—a figure that includes royalties, corporate taxes, and other levies. Yet, Nyarko bluntly stated that “the small-scale sector, largely, if I’ll put it very bluntly, is not a tax-paying sector.” He contrasted this with large-scale miners, who operate under formal fiscal regimes, pay corporate income tax at 35%, and contribute royalties, dividends, and social development levies.
This revenue gap is a major concern for the Ministry of Finance, especially as Ghana pursues fiscal consolidation under its IMF programme. While the Bank of Ghana’s GoldBod now purchases doré from artisanal miners and withholds some levies at source, widespread informal trading and smuggling mean that a significant portion of the sector’s value escapes the state’s tax net.
Formalisation Efforts and the Galamsey Paradox
The ascendance of small-scale mining also reignites the long-standing debate over illegal mining—galamsey—which constitutes a large but unquantified share of the sector. While the Chamber’s data includes licensed small-scale operations, Nyarko acknowledged that the line between legal and illegal mining is often blurred. The government, under President Mahama, has intensified military-led operations (NAIMOS) to clear illegal miners from forest reserves, and GoldBod’s new XRF testing mandate (effective September 1) aims to improve traceability and valuation.
Yet, the sheer scale of small-scale activity—now producing more gold than all the industrial mines combined—poses a governance challenge. How can the state regulate a sector that is geographically dispersed, labour-intensive, and often operates outside formal channels? Nyarko suggested that the answer lies in further strengthening the licensing regime, expanding the reach of GoldBod’s buying stations, and using digital payment systems to encourage formalisation, but he conceded that “these are long-term structural solutions.”
Rising Production Costs Pressure Large-Scale Miners
The Chamber’s data also reveals that the large-scale sector is struggling with cost pressures. Ghana’s weighted All-in Sustaining Cost (AISC)—the industry benchmark that measures the total cost of producing an ounce of gold, including mining, processing, and sustaining capital—stood at US$2,031 per ounce in 2025. With gold prices averaging around 2,200 per ounce for much of the year, margins remain positive but thin. Nyarko noted that this AISC is among the highest in Africa, driven by rising energy costs, imported inputs, and a depreciating cedi, which inflates local-currency expenses.
In contrast, small-scale operations have much lower capital and operating costs—often relying on manual labour, cheap equipment, and little to no environmental compliance—which makes them highly responsive to price increases. This cost advantage partly explains why the small-scale sector has expanded so aggressively while large-scale mines have stagnated.
Exploration: The Need to Replace Depleting Reserves
Looking ahead, Nyarko stressed that sustaining Ghana’s gold production—and especially reviving the large-scale sector—will require continued investment in exploration. The Chamber recorded US$135.2 million in exploration expenditure in 2025, a figure that Nyarko called “critical but insufficient.” He explained that mining is a depleting industry: “As you mine, the volume of material that you have available to mine will be depleting. The only way you can extend your production is to continue to invest.”
Exploration spending has been constrained in recent years by geopolitical risks, shifting tax regimes, and the difficulty of securing new mining leases. Without new discoveries, Ghana’s large-scale output could continue its downward trend, further entrenching the dominance of small-scale mining—with all its attendant governance and revenue implications.
Broader Economic Contribution
Beyond exports and taxes, the mining sector’s in-country expenditure—including procurement of local goods and services, wages, and community development—reached US$7.14 billion in 2025, underscoring its role as a key driver of the domestic economy. Nyarko pointed out that the sector supports hundreds of thousands of direct and indirect jobs, particularly in rural areas where alternative employment is scarce.
However, the shift towards small-scale mining also raises concerns about worker safety, environmental degradation, and the long-term sustainability of the industry. Nyarko concluded that “the Chamber’s view is that we need a balanced approach—one that formalises and regulates the small-scale sector while creating a more competitive environment for large-scale investors to thrive.”
Outlook for 2026 and Beyond
The Chamber projects that national gold output could rise further in 2026, reaching between 6.1 million and 6.7 million ounces. Much of this growth is expected to come from the small-scale sector, as gold prices remain elevated and more miners enter the industry. However, Nyarko warned that without significant regulatory reforms and investment in formalisation, the revenue and governance gaps will only widen.
For now, the historic milestone of small-scale mining overtaking large-scale operations is a testament to the resilience and adaptability of Ghana’s gold industry—but it is also a wake-up call for policymakers. As Nyarko put it, “We are producing more gold than ever, but we are collecting less of its value. That is the paradox we must resolve.”
