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SLIPPING THROUGH A gold trader in Uganda shows nuggets of gold that he said had been smuggled out of Democratic Republic of Congo. REUTERSDavid Lewis
High prices are luring Africans into prospecting for gold. But huge volumes are smuggled out through the Middle East.
Billions of dollars worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East a gateway to markets in Europe, the United States and beyond a Reuters analysis has found.
Customs data shows that the UAE imported 15.1 billion worth of gold from Africa in 2016, more than any other country and up from 1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity up from 67 tonnes in 2006.
NAIROBI, Reuters - Billions of dollars worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East a gateway to markets in Europe, the United States and beyond a Reuters analysis has found.
Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.
Previous reports and studies have highlighted the black-market trade in gold mined by people, including children, who have no ties to big business, and dig or pan for it with little official oversight. No-one can put an exact figure on the total value that is leaving Africa. But the Reuters analysis gives an estimate of the scale.
Reuters assessed the volume of the illicit trade by comparing total imports into the UAE with the exports declared by African states. Industrial mining firms in Africa told Reuters they did not send their gold to the UAE indicating that its gold imports from Africa come from other, informal sources.
Informal methods of gold production, known in the industry as artisanal or small-scale mining, are growing globally. They have provided a livelihood to millions of Africans and help some make more money than they could dream of from traditional trades. But the methods leak chemicals into rocks, soil and rivers. And African governments such as Ghana, Tanzania and Zambia complain that gold is now being illegally produced and smuggled out of their countries on a vast scale, sometimes by criminal operations, and often at a high human and environmental cost.
Artisanal mining began as small-time ventures. But the romantic era of individual mining has given way to large-scale and dangerous operations run by foreign-controlled criminal syndicates, Ghanas President Nana Akufo-Addo told a mining conference in February. Ghana is Africas second-largest gold producer.
Not everyone in the chain is breaking the law. Miners, some of them working legally, typically sell the gold to middlemen. The middlemen either fly the gold out directly or trade it across Africas porous borders, obscuring its origins before couriers carry it out of the continent, often in hand luggage.
For example, Democratic Republic of Congo DRC is a major gold producer but one whose official exports amount to a fraction of its estimated production Most is smuggled into neighboring Uganda and Rwanda. It is of course worrisome for us but we have very little leverage to stop it, said Thierry Boliki, director of the CEEC, the Congolese government body that is meant to register, value and tax high-value minerals like gold.
The customs data provided by governments to Comtrade, a United Nations database, shows the UAE has been a prime destination for gold from many African states for some years. In 2015, China the worlds biggest gold consumer imported more gold from Africa than the UAE. But during 2016, the latest year for which data is available, the UAE imported almost double the value taken by China. With African gold imports worth 8.5 billion that year, China came a distant second. Switzerland, the worlds gold refining hub, came third with 7.5 billion worth.
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The figures above suggest that official gold exports from Uganda grew exponentially after the launch of the African Gold Refinery, owned by Belgian national Alain Goetz. According to official projections of the refinery, which had been in operation from 2014, it expected to export more than 10 tons of gold in 2017.
Sep 23, 2020nbsp018332Mining is a significant portion of Perus economy and accounts for over 28 percent of the regions total output. 7. Ghana 142.4 tonnes. Ghana is Africas largest producer of gold, beating out South Africa for the top spot in 2019, and is also known for its reserves of various industrial minerals.
African gold was used in Western gold coins, and it remained the principal product of export. From 1500 onwards, African gold would power the world system of coinage. Gold has been the most important and enduring element that has shaped and determined Africas interactions with the rest of the world.
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Oct 15, 2020nbsp018332Several countries in the African continent are expected to produce gold from mining in 2019. ... Africas leading mining companies based on employment 2020 ... value of gold exports
Estimated production volume as of August 2019. Excludes production from artisanal mining. Gold was produced, however, available information was not reliable for making estimates. Does not include gold produced as a byproduct of copper mining. May include artisanal gold production from neighboring countries however, available information was inadequate to make reliable estimates of the output that originated from these countries.