The National Concerned Association of Small-Scale Miners, Ghana (NCSSMAG) has backed the establishment of a Gold Board initiative by the government to, among other things, regulate the purchase of gold from small-scale miners.

According to the association, this initiative will ensure fair pricing, eliminate exploitation by foreign buyers, and enhance the economic viability of the small-scale mining sector.

In a press statement signed by the association, its President, Michael Kwadwo Peprah, said the association reaffirmed its commitment to policies that promote transparency and sustainability in the sector.

The statement follows last year’s engagement with the National Democratic Congress (NDC) flagbearer John Dramani Mahama, during which discussions centered on incorporating small-scale mining reforms into the NDC manifesto.

During the meeting, the former president, now the president, assured the miners that, if given the opportunity, his administration would implement policies to support small-scale miners, including the establishment of a Gold Board to provide fair and stable gold pricing.

NCSSMAG welcomed the newly established Gold Bod proposal, by Sammy Gyamfi, the Acting Managing Director of the Precious Minerals Marketing Company (PMMC), describing it as a significant step towards eliminating unfair trading practices that have long disadvantaged local miners.

The association emphasised that the idea of a structured gold purchasing framework was first discussed during a stakeholder meeting on June 11, 2024.

The meeting, attended by representatives from the Precious Minerals Marketing Company (PMMC), examined the challenges faced by small-scale miners in selling gold at fair prices.

According to NCSSMAG, foreign buyers, particularly Indian traders, have been purchasing gold at rates 10 to 15 percent below market value, leaving miners with little choice but to accept unfavourable deals due to the lack of a regulated buying system.

While the law permits the Precious Minerals Marketing Company (PMMC) to buy gold from small-scale miners, the association noted that inadequate government funding has prevented the company from competing effectively in the market.

As a result, miners have been forced to rely on foreign buyers, leading to revenue losses for both miners and the state.

NCSSMAG, therefore, called on the government to allocate adequate resources to the proposed Gold Board to ensure a well-structured, transparent, and competitive gold market.

Beyond fair pricing, the association also urged the government to invest in modern mining equipment to enhance productivity.

It emphasised that inadequate machinery remains a significant challenge for small-scale miners, reducing efficiency and limiting growth in the sector.

NCSSMAG reiterated its commitment to collaborating with all stakeholders to ensure small-scale miners operate in a fair and sustainable environment.

The association expressed optimism that the establishment of the Gold Board would not only protect the interests of local miners but also contribute to national economic growth.