The Dark Side of Gold: How 'Blood Gold' Fuels West African Turmoil

As gold prices reach record highs, military governments in West Africa exploit their regions’ gold resources amid rising jihadist activity. The situation worsens for local miners, who see no benefits while violent groups vie for gold control. While international efforts to regulate 'blood gold' are lacking, the exploitation continues, exacerbating instability.

In 2025, gold has become an appealing asset amidst global economic turmoil, driving significant investments. Despite the glitter's allure, the origins of this gold often trace back to conflict-ridden regions, particularly in West Africa's Sahel. For the military regimes of Burkina Faso, Mali, and Niger, gold proves to be a crucial revenue source amidst escalating jihadist insurgencies and adverse climate changes.

Beverly Ochieng, a senior researcher at Control Risks, notes the military juntas are determined to harness the profit from soaring gold prices. According to the World Gold Council, these Sahel countries produce around 230 tonnes of gold yearly, yielding an estimated $15 billion. However, this figure likely underrepresents the true value due to insufficient records regarding small-scale and artisanal mining operations.

The Sahel region leads Africa in gold production, but the gold mines have also turned into battlegrounds for control. Russian interests, notably through firms like Yadran Group, are steadily increasing their foothold in the local economy, as Mali invests in a new gold refinery to create jobs. Meanwhile, misinformation campaigns glorifying military leaders such as Capt Ibrahim Traoré in Burkina Faso aim to consolidate power while portraying these ventures as beneficial for citizens.

However, the benefits seldom reach the general populace. Governments are heavily funding counterinsurgency operations, often involving Russian mercenaries, including the Wagner Group. Their presence has drawn accusations of committing human rights abuses against civilians, raising concerns about civil safety as anti-government insurgents gain strength.

The gold industry is rife with complexities. Numerous artisanal mining operations occur informally without adequate oversight, leading to competition between governments and jihadist groups over lucrative resources. Armed factions profit from gold amidst heightened violence and instability.

Even as international gold prices surge, local miners remain trapped in a precarious situation. One anonymous miner shared that despite rising global prices, his earnings have not increased significantly, with substantial profits primarily benefiting mine owners. Professionals like Dr. Alex Vines from Chatham House contend that these dynamics transform gold into Africa's new conflict commodity.

Unlike past efforts to address 'blood diamonds,' gold's intricate supply chain complicates regulatory enforcement. Entities like the London Bullion Market Association operate under loose ethical guidelines, primarily influenced by voluntary compliance from refining countries like the UAE, thus complicating direct oversight.

Compounding the issue is the inability to trace gold origins efficiently. Unlike diamonds, which can be tracked until cutting, gold's early smelting process obscures its background. Experts like Dr. Vines suggest that a portion of 'blood gold' possibly permeates UK markets without any tracking or accountability.

For now, the intertwining of gold revenues with government coffers and the lack of stringent ethical requirements ensures the trade continues. Consequently, communities in the Sahel face the grim reality of tying their economic livelihood to a commodity steeped in conflict and bloodshed.