Ghana’s state-run artisanal gold exporter is planning to redirect shipments to other refining hubs if ongoing flight disruptions to the Dubai, UAE, continue, according to two sources familiar with the matter, reported by Reuters.
The disruptions, triggered by the U.S.–Israeli attack on Iran and its regional spillover, have grounded most flights through Dubai for a week, highlighting Africa’s dependence on the Middle Eastern hub.
Dubai, a major global gold trading centre supplying Switzerland, Hong Kong, and India, normally refines about 80% of output from Ghana’s artisanal and small-scale mining (ASM) sector.
Ghana, Africa’s largest gold producer and the world’s sixth-largest, relies heavily on this system.
GoldBod, the sole official buyer and exporter of Ghana’s ASM gold since its establishment last year, has already drafted contingency routes outside the UAE, though the company has not yet experienced any direct impact, a senior official told reporters on condition of anonymity. The sources did not specify the alternative destinations.
Potential alternatives include refining hubs in Shanghai and India, although traders and analysts warn these options could be more expensive.
Ghana’s ASM sector benefited from record-high gold prices and GoldBod’s centralised trading, pushing official annual ASM production up 63% last year to 96 metric tons, valued at $15.8 billion, representing 52% of the country’s total gold output.
“There is always a market for gold. We have people lined up who have been knocking for years, some even ready to pay a premium,” the GoldBod official said, emphasizing the resilience of trade despite the disruption.
Gold shipments usually travel by air due to their high value-to-weight ratio. However, Dubai airport, typically the world’s busiest, is currently operating at about 25% capacity, prioritising passengers and essential cargo such as pharmaceuticals.
“When flights do start up, the early ones are likely to be carrying perishable goods rather than high value,” said Rhona O’Connell, analyst at StoneX.
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Should the Middle East conflict persist, GoldBod’s contingency plans will be critical to mitigate economic consequences for Ghana and other African countries.
“A no-fly zone declaration would affect us big time, with no trade and no foreign exchange. The local currency may be affected with its economic consequences,” said an ASM gold miner in Ghana, speaking anonymously.
Some airlines have only temporarily extended flight suspensions, while Emirates has resumed limited operations, aiming to return to full capacity within days.
The ASM sector, which accounts for roughly 20% of global mined gold but supports millions of miners and families, remains challenging for many refineries due to concerns about traceability and compliance.
Historically, a significant portion of Africa’s artisanal gold was illicitly exported to the UAE, prompting authorities in both countries to improve oversight.
For GoldBod, formalising the sector is an ongoing process. The agency continues to channel more ASM gold into official supply chains, even as rising gold prices encourage informal mining, which pollutes rivers and threatens cocoa farms.
The recent flight disruptions have also created opportunities to curb illegal exports.
“While the situation in the Middle East is undeniably tragic, it also creates a moment to disrupt the unwanted illicit flows that have long fuelled instability throughout Africa, particularly those driven by criminal and non-state actors,” said Ruth Crowell, chief executive of the London Bullion Market Association (LBMA).
Ghana’s ASM sector is now among the most regulated in the region following GoldBod’s creation last year, with plans to channel 127 tons of ASM gold through formal export routes.
In support of this effort, Africa’s largest refining company, Rand Refinery, partnered with a Ghanaian refinery in January to help GoldBod manage responsible local ASM refining.
Crowell said the Middle East disruptions may accelerate similar partnerships across Africa, encouraging responsible market participants to “reassess their supply chains and make informed decisions about where to source and send their material.”
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Image Credit: Mining.com
