Ghana surpassed South Africa several years ago to become Africa's leading gold producer. While this growth in gold output, largely driven by industrial mines operated by foreign multinationals, has significantly boosted government revenue, it is simultaneously fueling persistent conflicts with local communities. Although gold is shining brightly on international markets with prices recently spiking above $3,500 per ounce the metal's luster is far from visible for some Ghanaians.

While Ghana has eclipsed South Africa as Africa’s top gold producer, its booming industrial mining sector is facing an escalating crisis of social conflict. Deadly clashes between local residents and multinational companies have intensified in recent months, revealing an increasingly untenable coexistence.

The tensions come as a report by Pure Earth and the Ghana Environmental Protection Agency warned this week of alarming mercury levels in six mining regions, a consequence of artisanal operations. While "galamsey," the name for illegal small-scale mining, fuels public anger over its environmental and health effects, industrial mining has long faced similar criticism.

Tensions peaked on September 9 when a local politician was killed at the Asanko gold mine, owned by Canada’s Galiano Gold. The fatality occurred during a confrontation between local youth, who accused the company of insufficient community development investment, and soldiers deployed as part of a security operation coordinated by the Ghana Chamber of Mines.

Recurrent Protests and Fatal Incidents

The relationship between miners and residents is equally strained in Obuasi, where AngloGold Ashanti operates one of the country's largest mines. Tensions date back to at least 2016, when repeated incursions by illegal miners forced the company to suspend activities before a 2019 restart. The problem resurfaced in June 2023 with renewed clashes after clandestine miners invaded the concession.

While no deaths were reported then, violence erupted again in January 2025, leaving at least seven people dead after soldiers intervened against miners accused of trespassing. Weeks later, residents of Binsere, in the same area, protested the construction of a mine waste dam, citing toxic pollution and demanding compensation and relocation.

Before Obuasi, the country’s largest gold mine, Ahafo, long symbolized this difficult cohabitation. Operated by the world’s top gold producer, the U.S.-based Newmont, the site was plagued by severe tension from its launch. In June 2006, a violent demonstration at Ntotroso nearly disrupted the construction completion ceremony, with young people accusing the company of unfair treatment and briefly holding journalists hostage. Subsequent grievances included mass displacement, insufficient compensation, repression of protests, and a 2009 cyanide spill that contaminated rivers and threatened local water access.

Economic Impact Versus Social License

Across years of protests and tragedies, a central complaint by communities against gold producers is their insufficient economic contribution. This perception persists even though mining companies are vital to Ghana’s economy. Their output propelled the country to the top of African gold production, and gold became the leading export, generating $11.6 billion in 2024, accounting for 57% of total exports.

In 2023, gold alone accounted for 7.2% of Ghana’s GDP. In 2024, the Chamber of Mines reported a 51% increase in tax contributions to 17.7 billion cedis ($1.43 billion) and a 76.7% increase in royalties to 4.9 billion cedis. Mining companies, primarily gold producers, provided nearly a quarter (24.3%) of the direct taxes collected nationally, solidifying their role as a fiscal pillar.

Faced with recurrent attacks on mine sites, the state has consistently sided with the companies, guaranteeing protection and operational continuity, often widening the gap with communities. While companies operate within official regulations, the protests reveal a demand for a different kind of legitimacy: the social license to operate (SLO). Unlike a legal mining permit, the SLO is informal and depends on the continuous acceptance of neighboring communities. As Nick Holland, then-CEO of Gold Fields (owner of two mines in Ghana), noted in 2014, the absence of this social license can permanently stall a project, regardless of central government support.

In West Africa, this issue has become critical. Joshua Mortoti, former President of the Ghana Chamber of Mines, argued that traditional ESG standards are no longer sufficient. He advocated for a renewed approach that involves communities more directly through job creation outside the mine site and, ultimately, direct local participation in the equity of companies operating in their territory.

Other experts, like Dr. Ahamadou Mohamed Maïga, stress state responsibility. Maïga suggests that mining companies generally meet their formal fiscal and social obligations, but the Local Mining Development Funds (LMDFs), intended to benefit the local territories, suffer from structural weaknesses. The lack of inclusive governance, poor planning, inadequate accountability, and poorly targeted projects fuel the perception of injustice. Communities then associate the companies with their impoverishment, even when corporate commitments are formally met.

“Projects using the LMDF must be designed with affected residents through a direct assessment of local needs. To ensure their long-term viability and coherence, these initiatives must align with local authorities' broader development plans,” he recommended.

Emiliano Tossou