The Galamsey Millionaires: How Small-Scale Miners Just Overtook Big Mining for the First Time in a Century

Let me start with a number that should shock every Ghanaian who has ever worried about the environmental destruction caused by illegal mining. Three point one one million ounces. That is how much gold small-scale miners produced in 2025. That is 63.8 percent more than they produced in 2024. And it is enough to give them 52.4 percent of the country's total gold output, surpassing large-scale mining for the first time in over a hundred years. The small-scale miners, the same sector that is often demonised for galamsey, have become the dominant force in Ghana's most important export industry. That is not a headline. That is a revolution.

Let me break down the Accra Street Journal numbers from the annual review of the mining sector presented at the 98th Annual General Meeting of the Ghana Chamber of Mines.

Total attributable gold production rose by 23.41 percent, climbing from 4.82 million ounces in 2024 to 5.94 million ounces in 2025. That is a huge increase. The most striking development came from the small-scale mining subsector, where output surged by 63.82 percent, from 1.90 million ounces to 3.11 million ounces. As a result, small-scale mining accounted for 52.4 percent of national gold output, surpassing large-scale mining's share of 47.6 percent. Large-scale gold output actually fell by 2.98 percent, declining from 2.92 million ounces in 2024 to 2.83 million ounces in 2025. For more than a century, large-scale mining companies dominated Ghana's gold production. That era is over. At least for now.

What drove this extraordinary growth? The Chamber attributes the strong performance per report by Accra Street Journal largely to ongoing reforms, including the establishment of the Ghana Gold Board, which has sought to formalise gold trading and improve regulatory oversight. The Gold Board provides a platform for small-scale miners to sell their gold legally. That encourages formalisation. It reduces smuggling. It allows the government to collect royalties and taxes. And it gives small-scale miners access to the formal financial system.

Higher gold prices also played a role. Gold has been trading above 4,500 dollars per ounce. When prices are high, even marginal deposits become profitable. Small-scale miners, who have lower overheads than large-scale companies, can ramp up production quickly. They do not need to conduct feasibility studies or obtain environmental permits, at least not the same way. They just dig.

The decline in large-scale output is modest, 2.98 percent, but symbolically significant. The sector's share of national gold production fell from 60.6 percent in 2024 to 47.6 percent in 2025. That is the first time in over a century that large-scale miners have produced less than half of Ghana's gold. The decline reflected lower production across several operations, although gains at Asanko Gold Mine and AngloGold Ashanti's Obuasi Mine helped cushion the downturn. Production was further supported by output from Newmont's Ahafo Mine, Cardinal Resources' Namdini Mine, and Zijin Mining's Akyem Mine. The decline is not a collapse. But it is a trend.

The mixed performance across other minerals is also notable. Manganese production increased from 5.0 million tonnes to 5.2 million tonnes, 3.85 percent growth. Bauxite production expanded by 21.9 percent, reflecting continued investment and operational improvements. Diamond production, however, fell sharply, from 332,297 carats in 2024 to 197,233 carats in 2025, a decline of 40.65 percent, due to weaker natural diamond prices, competition from lab-grown diamonds, and subdued global demand.

Now, let me give you the analysis that the Chamber might not highlight. The small-scale mining surge is a double-edged sword.

On one hand, it represents economic activity, employment, and foreign exchange earnings. Small-scale miners are often Ghanaians. They are capturing value that would otherwise go to foreign-owned large-scale mines. The government's revenue from small-scale mining, taxes, royalties, licence fees, has increased. The Minerals Income and Investment Fund reported first-quarter 2026 royalty receipts of GH¢2.01 billion, up 40 percent. The small-scale surge contributed to that increase.

On the other hand, small-scale mining is associated with environmental degradation. Deforestation. Water pollution. Land destruction. Illegal mining, galamsey, has poisoned rivers, destroyed farmlands, and created social conflict. The formalisation drive has reduced illegality but not eliminated it. You cannot walk through parts of the Western Region without seeing muddy pits, deforested hillsides, and rivers that run brown. That is the cost of the gold.

The challenge for the government is to sustain production growth while improving environmental performance. Formalisation must continue. Simplify licensing. Provide extension services. Enforce environmental standards. The Gold Board should be strengthened to provide a market for all legally produced gold. The Minerals Commission and the Environmental Protection Agency need more resources to regulate the sector effectively.

The large-scale sector's response is also important. Mining companies have invested in community relations and environmental management. They may argue that small-scale miners operate with lower standards and avoid taxes. There is some truth to that. But the government cannot ignore the fact that small-scale miners now produce the majority of the country's gold. The policy must adapt.

The shift to small-scale dominance is not necessarily permanent. Large-scale miners could increase production by investing in new mines or expansions. The Namdini mine is new. Other projects are in development. The large-scale sector's decline may be temporary. But the trend is clear. Small-scale mining is no longer a fringe activity. It is the mainstream.

What does this mean for Ghana's economy? Gold exports generate foreign exchange, supporting the cedi and the trade surplus. The sector employs thousands of Ghanaians, directly and indirectly. The government's revenue from royalties and taxes has increased. In the short term, the small-scale surge is a boon.

For mining policy, the shift requires a recalibration. The government has historically focused on large-scale mining, negotiating leases, and attracting foreign investment. The rise of small-scale mining requires a different policy toolkit. Formalisation. Environmental management. Community engagement. The government must invest in the Minerals Commission and the Environmental Protection Agency to regulate the sector effectively.

For the environment, the small-scale surge is a concern. Illegal mining has devastated water bodies, forests, and farmlands. The formalisation drive has reduced illegality but not eliminated it. The government must enforce environmental regulations, rehabilitate degraded lands, and provide alternative livelihoods for miners who are operating illegally. This is not an environmentalist's luxury. It is a survival imperative. If the rivers die, the farmers die. If the farmers die, the country starves.

For large-scale miners, the shift is a warning. The industry must adapt. Invest in community relations. Support formalisation. Demonstrate that large-scale mining offers benefits that small-scale mining cannot, such as employment, technology, and environmental management. The large-scale sector's decline may be reversed with new investment.

For small-scale miners, the shift is an opportunity and a responsibility. Formalisation provides legal protection, market access, and support services. But with formalisation comes compliance. Environmental standards. Safety regulations. Tax obligations. Small-scale miners must embrace these responsibilities to sustain the sector's growth. The days of digging a pit and dumping waste in the river should be over. The law will catch up. And when it does, the miners who have not formalised will be the ones who suffer.

The 2025 mining data reveals a historic shift. Small-scale miners now produce the majority of Ghana's gold. The growth is impressive, but the challenges are significant. Formalisation must continue. Environmental enforcement must strengthen. Large-scale miners must adapt. The shift is not necessarily permanent, but it is a wake-up call. Ghana's mining policy must evolve. The gold is still in the ground. The question is who digs it, how they dig it, and what they leave behind. That is not just a mining question. It is a national question. And it is time for an answer.

Source Used: Accra Street Journal

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