Ivory Coast aiming to fight illegal gold production

2012-JAN-27

In the northern region of Ivory Coast conflicts between local citizens and illegal gold producers have been escalating. Experts believe that the under-developed mining sector of this West African state has great potential. Ivory Coast's ministry of mines and energy aims to boost yearly gold production from seven tonnes in 2011 to over 13 tonnes in 2013. To achieve this goal, the government needs to grant more production licences, simplify the bureaucratic process and gain control over illegal gold production.

As in many other countries, rising gold prices have made illegal gold mining an increasingly attractive proposition. This illegal gold production means that Ivory Coast’s government is losing out in terms of potential tax revenue and licensing fees. However, as the ministry of mines and energy recently stated, the government's bureaucratic system is too complex, and laws need to be urgently reformed in order to simplify the licence concession process in the mining sector. In the past 10 years more than 170 companies applied for licences, but so far only 30 licences have been granted. This is clearly not enough to boost the country's mining potential, and as a result its unsurprising that illegal gold production is increasing, since producers are currently selling one gram of gold at an average price of $40. Many citizens of Ivory Coast live on less than a dollar a day.

In recent years problems have started to intensify as illegal gold operations started to encroach on fertile agricultural regions. Farmers complain that, without their permission, holes of up to 20 metres are being drilled on their farmland. Not only do these illegal activities jeopardise the safety of local citizens, but once prospection has proved fruitless, these holes are often left open. This crater landscape is hindering the cultivation of plants which are important for the country's food supply.

According to experts, today's problems are partly based on the civil war which raged from 2002 to 2011. Once the former rebels gained control over the country's north, in many cases they worked together with landowners and community leaders to illegally produce gold and other precious metals. The government faces a tricky task in speeding up the regulatory process and in discouraging people from illegal mining.