{
  "id": 18273784,
  "title": "Make responsible mining bankable",
  "url": "https://urgent.news/2026/11/05/make-responsible-mining-bankable",
  "topic": "world",
  "section": "World",
  "published": "2026-11-05T07:58:15.000Z",
  "source": {
    "name": "Ghanaian Times",
    "slug": "ghanaian-times",
    "url": "https://ghanaiantimes.com.gh/make-responsible-mining-bankable/"
  },
  "original_language": "en",
  "account": "Ghana's small-scale mining sector is vital to the nation's economy, providing income for thousands while boosting gold production and foreign exchange earnings. However, the sector struggles with a major hurdle: access to financing. The Ghana Association of Banks (GAB) reports banks are wary of lending to small operators due to fears their funds may end up financing illegal mining, known as \"galamsey,\" and environmentally damaging practices. These concerns are valid, as no responsible financial institution wants its resources linked to deforestation, water pollution or other illicit activities. Moreover, banks must safeguard their depositors' funds and reputations. This dilemma raises a crucial question: if legitimate small-scale miners cannot secure formal financing, where are they supposed to find the resources to operate responsibly and grow their businesses? If banks do not support the sector, legitimate operators may rely on informal lenders, leading to unfavorable conditions, or they may miss out on modern equipment and safer, environmentally friendly mining methods. To address this issue, Ghana must differentiate between responsible small-scale mining and illegal activities. Illegal galamsey operations should not be a reason to deny credit to every small-scale miner. Banks are ready to support responsible operators through structured loans, equipment financing, and direct payments to suppliers. However, stronger regulatory controls, transparent gold trading, and effective monitoring systems are essential to give financial institutions confidence. The Government, regulators, and mining industry stakeholders must address these proposals. Strengthening licensing and monitoring systems is the top priority. Banks must verify applicants' valid licenses, legitimate access to mining concessions, and necessary documentation. Transparency in gold trading is also critical; when the gold's origin cannot be properly traced, it becomes difficult to distinguish legally mined gold from illegal proceeds. A reliable traceability system is needed to tackle this challenge. The Ghana Gold Board (GoldBod) plays a significant role in ensuring transparent gold purchasing arrangements, enhancing supply chain confidence, and making it easier for banks to identify legitimate operators. Banks should also consider developing financing products tailored to responsible small-scale miners, such as equipment leasing, supplier-backed financing, and loans tied to verified production. Direct payments to approved suppliers would further ensure funds are used for their intended purposes. Simultaneously, the Government must enforce environmental standards consistently. Operators who pollute rivers, destroy forest reserves, or mine outside authorized concessions must face legal consequences regardless of their political or economic connections. Formalization should not become a cover for illegal mining. Ghana cannot afford to abandon a sector with considerable economic potential due to illegal practices, nor can it allow gold pursuit to destroy its natural resources.",
  "summary": "GHANA’S small-scale mining sector plays an important role in the national economy. It provides livelihoods for thousands of people, supports businesses in mining communities and contributes to gold production and foreign exchange earnings. Yet, despite its economic importance, the sector continues to face a major obstacle: access to finance. The Ghana Association of Banks (GAB) … The post Make…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}