World Gold Council pushes for responsible gold mining to combat criminal exploitation

Time of India

30-06-2025

The
World Gold Council
has said that it is ready to collaborate with governments and industry stakeholders to promote responsible
gold
that are sourced from
Artisanal and Small-Scale Gold Mining
(ASGM). ASGM refers to
gold mining
that is traditionally conducted by individuals or small groups using relatively simple methods and equipment.
ASGM is a critical livelihood across rural communities in Africa, Asia, and Latin America, yet about 85% of it operates outside formal regulatory frameworks, making it vulnerable to exploitation by criminal gangs and liable to cause environmental degradation. As the gold price has increased significantly over the past few years, this has become an even more pressing issue.
Through research, policy advocacy, and on-the-ground partnerships, WGC aims to integrate ASGM into legitimate
gold supply chains
while safeguarding communities and ecosystems. We invite government leaders to engage with our findings and join us in shaping a more secure, transparent, and sustainable future for gold mining.
ASGM is characterised by low capital intensity and high labour intensity, and it accounts for approximately 20% of global gold supply and supports some 20 million occupations.
The informal nature of ASGM presents significant governance challenges. WGC's recent report, Silence is Golden, highlights how criminal networks, armed groups, and corrupt officials exploit the sector to fund illicit activities, including terrorism and organised crime. These actors take advantage of weak enforcement, lack of transparency, and fragmented international oversight. The consequences are severe: human rights abuses, environmental harm (especially mercury pollution), and lost tax revenues. For governments, the unchecked growth of illicit ASGM poses a direct threat to national security, economic stability, and the rule of law.
One of the WGC's key proposals to mitigate the negative impacts of ASGM is the development of responsibly managed mercury-free gold processing plants. These facilities have the potential to significantly improve gold recovery rates, displace mercury, enhance miners' incomes, and serve as aggregation points that enhance transparency and traceability in the gold value chain. They can also improve the ability of governments to regulate and formalise the sector and to build miners' and business skills.
Governments can play a pivotal role in enabling the success of these solutions. This includes creating regulatory frameworks that support the establishment of processing plants, investing in infrastructure, and fostering public-private partnerships. Commercial viability must be balanced with social and environmental responsibility. By aligning national policies with international best practices, governments can help transition ASGM from a source of risk to a driver of inclusive economic development.
Governments can support formalisation through intelligent regulation, proper incentives and investment in enforcement, infrastructure and improved services in mining communities.
Public-private partnerships are key to balancing commercial and social goals. For example, industrial miners working with responsible local small-scale miners through partnerships with entities such as the
World Bank
and World Gold Council, involving governments and large-scale mining companies,s can help to enact positive change