Alluvial Gold (Galamsey) Mining Fraudulent Operations

Article 4 Alluvial Gold Scam in West Africa

The word galamsey is derived from a Ghanaian word meaning gather them and sell , this operations is mostly carried out by illegal local miners mostly in the villages where the Environmental Impact Agency rarely visits. This operation is very risky because they are mostly carried out in areas or mines that fall under the prohibited areas by the Government maybe because of their proximity to the railway lines or other Government facilities that might endanger the lives of the local miners and of people living in the region. Also it risky because being operated by locals more often times safety caution is highly undermined and as such these miners face the risk of landslides in most cases not to mention the risks of use of mercury and lead to recover gold particles or gold dust to form gold nuggets. However in this article our focus will be on the methods these illegal miners defraud the owners of the business. It might surprise you to know that the local miners are mostly not the owners they have sponsors that usually enter an agreement with them under the terms that the sponsor pay for the equipment and fuel, lead, diesel, water pumps, hoses and provide logistics , money to run the operation and even at times pay the village heads for the mines to be mined by theses galamsey miners while the local miners provide the mines and carry out the mining operations and the refining of the gold, then all the gold mined in that land these galamsey miners under the said agreement are under obligation to sell all the gold to the sponsor at an agreed discounted price. These sponsors are mostly situated in the cities and it just another way to invest in gold and realize your return on Alluvial gold investment. Usually the sponsor has someone who is with the local miners at the site to monitor the operations so that the miners do not defraud the sponsor of gold mined. The local miners would bring two gold mat which is fixed to the gold washing board, this is the mat that traps the gold using the principle of the force of gravity as gold we know is heavier than other materials. Unknowingly to the sponsor they would switch or replace it with the second mat at intervals of the operation maybe every two hours intervals they would wash the one they intend to hide and keep that to themselves and only report the other to the sponsor. So in a 8 hours operation they might only surrender four hours amount of gold wash to the sponsor and keep the other 50% for themselves. Also the miners knows the gold materials that are richer so even within the washing operation if they observe that some deposits would contain higher quality and quantity of gold they would immediately run those materials for themselves and hide it. It then happens that mines that suppose to produce let’s say 15 kilograms of gold, they end up remitting only half of such amount and or less than half, to the shortage of the sponsor. Another method use by the galamsey miners is when they use the lead as they gather the gold particles from the water where the gold particles are deposited into nugget. They are so good with their tricks that as you look closer in front of them they would hide let’s say one or two nuggets every time they are in the process of using the lead to magnet the gold particles into round shape nuggets. Rumor have it that they use voodoo so that the sponsor do not see the gold nuggets stolen in their fingers before they hide it in their pockets, no one can actually ascertain. It might sound like with this method, they might not be able to steal much but they actually stole as much as over 60% of the sponsor gold. The ones stolen by them are thereafter sold at a current market price and they reap dishonest gains more than the sponsor who invested financially into the business just end up being reaped off by these galamsey local miners in Ghana. As the sponsor goes to sell the gold in an attempt to recover is money invested which is hardly recovered, due to the local miners dubious operations and as result of the slim profit at a discounted price he bought from his local miners, the local miners too also goes to sell their own, with good profit margin without actually investing a single dime, what a heartless way to do business. So whenever you eventually own a gold mine do not use local miners in order to save cost, do your best to own the right machinery for your mining operations which relatively refine the finest gold particles more and if for any reason you must use local or manpower to do your mining operations stay away from these popular local miners, so called galamsey miners and always be vigilant and diligent because they have years of experience of defrauding people.

You watch out for our next article thank you

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