Gold is in the spotlight today — in 2025 alone we saw prices surge 67% to a record high, capturing the investment world’s attention. Yet beneath those highs there is truly transformational work at play that must and will build even greater confidence in the gold market for the long term. One such change is tackling the systemic threats from the illicit trade of gold linked to artisanal and small-scale gold mining (ASGM).
If we look back to the end of the last century, ASGM accounted for just 4% of global gold production, today it is estimated to be at least 20%, and we believe it could be higher. In a short period of time it has changed beyond recognition, driven by the increases in gold’s price, lack of alternative livelihoods, poor enforcement, climate change, high unemployment and population displacement.
Today about 20-million people directly depend on ASGM for their livelihood. Yet its footprint and impact go far beyond those individuals, unfortunately enabling illicit activity around the world, not only in producer regions such as Africa, Latin America and Asia-Pacific, but also in downstream destination markets such as North America and Europe. Organised criminal groups operating in the West are laundering their ill-gotten gains through ASGM.
At the World Gold Council we are mobilising support, working on a practical, scalable solution that can drive formalisation, by which we mean access to the formal gold market for responsible artisanal miners.
While ASGM was once seen as an alternative to subsistence agriculture, it is now a major source of livelihood and a significant economic sector. The negative effect of irresponsible ASGM is too often severe. Human rights abuses, child labour and environmental harm, especially mercury pollution, are all consequences of poor practices. Exploitation and corruption are unfortunately rife, and action is needed to both halt bad actors and support the individuals and nations most affected.
The changes needed are economic, political, social and technological. They require the collective and collaborative focus of government, industry and individuals. At the World Gold Council we are mobilising support, working on a practical, scalable solution that can drive formalisation, by which we mean access to the formal gold market for responsible artisanal miners. Our goal is to divert this gold to responsible buyers to reduce opportunities for illicit actors to abuse the gold supply chain. This is important for the gold market, and critical to support economic and social development in the communities and countries where this gold mining takes place.
Our solution is threefold and connected — it leverages technological developments to give confidence in the provenance of gold; incentivises responsible processing by increasing gold recovery rates; and mobilises responsible buyers to ensure gold produced by responsible ASGM can enter the formal supply chain.
Technology’s role in tracing gold’s origin
This solution is underpinned by harnessing technological advancements. Key to that is origin verification technology. Put simply, this geolocates the source of gold using a combination of the chemical footprint of an orebody and big-data analytics. It gives confidence to those within the formal gold sector — such as processing plants operators and gold buyers — that the gold has come from a recognised and acceptable source. It has the potential to bring gold that has been mined by artisanal and small-scale means into the mainstream. It also helps with valuation, measuring the gold content within the ore. Origin verification technology complements on-the-ground due diligence that is essential for a responsible supply chain.
Scaling up professional and regulated processing plants is critical and is the biggest opportunity to economically incentivise responsible artisanal miners. In taking their ore to these processing plants, the miners have the opportunity to significantly increase yield. Organised processing plants use cyanide, which can be well managed and controlled. In contrast, mercury is often used by artisanal miners, which has negative long-term environmental effects.
Indeed, many countries are now facing crises as their drinkable water supplies decrease. In addition to the environmental benefit, the use of cyanide (again, in a well-managed and controlled manner) can significantly increase the gold content extracted from ore. These processing plants can — and should — be regulated, allowing authorities greater control and oversight of the ASGM sector and providing increased confidence to companies purchasing gold from the processing plants.
Progress is being made. We are working with UN-backed Tech Against Terrorism to create a Global ASGM Index, an AI and open-source intelligence-powered database designed to quantify and map ASGM activity worldwide and enhance currently available data.
Getting greater engagement from buyers is also vital. If the trusted buyer pool for ASGM gold can be significantly developed and expanded, that will help further mitigate the influence of bad actors. Our initial focus here is with central banks, but we also see significant opportunities for the commercial sector. For central banks, purchases of locally produced gold in a local currency provides a cost-effective means of building gold reserves or acquiring gold for subsequent sale in foreign currency on international markets. And as official sector institutions, central banks have the influence and power to work with domestic government ministries and agencies to drive change through the system.
Progress is being made. We are working with UN-backed Tech Against Terrorism to create a Global ASGM Index, an AI and open-source intelligence-powered database designed to quantify and map ASGM activity worldwide and enhance currently available data. Already a handful of central banks are signatories to the London Principles, indicating their commitment to creating legal ways to purchase domestic ASGM gold, reduce mercury and co-operate internationally to further legitimise ASGM gold supply. In collaboration with this group of central banks, the World Gold Council has co-developed a good practice framework for national ASGM gold purchase programmes. Encouragingly, more are set to join them.
Yet this is progress we must make together, to drive the change that is needed. Working across borders, we must recognise the risk yet take on the challenge and collaborate to do more. Together, we can accelerate this change and ensure that a nation’s natural resources are best deployed to support long-term social and economic development.
• Tait is CEO of the World Gold Council.
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