The recent partnership between South Africa’s Rand Refinery and Ghana’s Gold Coast Refinery (GCR) has reignited debate over whether stricter international gold standards can finally choke off the market for illegal mining, commonly known as galamsey.
Earlier this week, Rand Refinery, Africa’s leading London Bullion Market Association (LBMA) Good Delivery–accredited refiner, entered into a strategic partnership with GCR to provide Technical and Commercial supervision. The collaboration is designed to support Ghana’s push for local refining of artisanal and small-scale mining (ASM) gold under internationally recognised assaying and responsible sourcing standards.
The collaboration is guided by the LBMA framework, which mandates traceability of gold across the refining process. Under LBMA Responsible Gold Guidance, refineries must demonstrate that every ounce of gold they process can be traced to a legal, verified, and responsibly operated source. Gold linked to illegal mining, environmental destruction, or undocumented supply chains is strictly prohibited.
This raises a critical question for Ghana’s long-running fight against galamsey: can LBMA’s traceability requirements prevent illegally mined gold from being sold, blended, and refined alongside responsibly sourced gold?
The concern is not new. For years, there have been claims that galamsey gold may enter the formal market through intermediaries, where it is alleged to blend with legally mined gold and lose its illegal identity before export. While definitive proof of such blending remains limited, critics argue that weak documentation, cash-based transactions, and fragmented supply chains create vulnerabilities that could allow illegal gold to pass through formal channels undetected.
LBMA standards seek to close this loophole by shifting enforcement from physical crackdowns to market exclusion. Refineries operating under LBMA rules are required to conduct rigorous due diligence on suppliers, verify mining licenses, assess environmental and social risks, and maintain auditable records of gold movements. Any gold that cannot be traced to a compliant source becomes commercially unacceptable.
In announcing the partnership, Rand Refinery underscored this commitment to responsible sourcing. According to its Chief Executive Officer, Dean Subramanian, “Rand Refinery… stands ready to support the aspirations of the Ghana government for local refining, through our partnership with Gold Coast Refinery. We are committed to working with GCR and Goldbod to implement the necessary framework to ensure that the material sourced meets international responsible sourcing requirements.”
Under LBMA requirements, undocumented gold is shut out of formal supply chains. This effectively limits access to accredited refineries, export routes, and premium pricing, which are central to the commercial appeal of illegal mining.
Over time, this could make illegal mining less profitable than operating within a licensed and monitored system.
The role of the government-owned Ghana Gold Board (GoldBod) is also significant. As the sole entity authorised to buy, sell, and export gold from small-scale miners, GoldBod’s alignment with LBMA standards could centralise oversight, reduce informal trading channels, and limit the entry of illegal gold into the supply chain.
Effective implementation will depend on consistent audits, strong domestic enforcement, transparent licensing of ASM operators, and the political will to deny market access even when supply pressures arise. Without these, there remains a risk that illegal gold could still enter the system through falsified documentation or informal networks.
Still, the Rand Refinery–GCR partnership marks a notable shift in strategy. Rather than chasing illegal miners after environmental damage has already occurred, LBMA standards aim to prevent galamsey gold from being bought, refined, or exported in the first place.
