Stephen Yeboah on Green Mining, Mercury-Free Gold, and Ghana’s Commodity Future

Can you provide a brief overview of Community Monitor Limited, including its inception and scope of business?

Commodity Monitor is a trading, logistics and research company. It was formed in 2017 to basically provide solutions along the commodity value chain. So, we are looking at both the soft and hard commodities. With soft commodities, we are looking at grains, the wheat, the corn, and then we are looking at the cocoa, the trading of these products, including its by-products or a processed form. Then we are looking at the hard commodities. You’re looking at mining, oil and gas and even energy. So that’s basically the work Commodity Monitor is doing. What we are doing is that, we want to provide both an engineering solution and a sustainable solution. If it’s in mining, for example, we are providing a solution where miners can have absolute solution to the processing of gold so that they get the best profit that they need. So that’s, in short, what Commodity Monitor is about. It was formed out of a passion of two people who were living in Europe. So actually, we schooled both in Europe. My background actually is that I schooled in Geneva, Switzerland, and then Switzerland is basically like the hub of commodities. So, the inspiration to form commodity monitor came from there that, I mean, there are benefits to trading along the commodity chain, and that’s what Commodity Monitor was set up to do. 

What are the services you provide?

 I’m a co-founder and then the CEO of Commodity Monitor, and as part of the services, what we do is that we look at connecting producers and consumers. So, if it’s about corn or maize, and there are shortage of, let’s say maize consumption here in Ghana, we look at connecting to producers, let’s say in Eastern Europe, could be Romania, or it could be, you know, Lithuania, or even Ukraine and Russia. Then we bring these products into the Ghanaian market or even the African market, and the other way around. Especially Ghana, we are able to get some commodities like soya bean, you know, or any other cereal that is much more needed in Europe or other continents. We try to gather them, and then we ship to these consumers outside. So basically, it’s about trading, and trading any type of commodity. We are fixed in between to make sure that we connect the producer and the consumer.
We are looking at agriculture, which is a soft commodity. We are looking at mining. In mining, mostly our focus has been on small scale for now, but we are engaging with some big mining companies, and then we have oil and gas. In oil and gas also it’s about dealing with the supply of oil, but not the production side. So basically, the supply, the distribution of oil, and then we are looking at the energy resources. So basically, if it has to do with renewables, you know, the whole currency of renewables, which is gaining traction today, so we are able to make sure that you’re able to get it. If it’s about solar, because after some of the plants, we try to go green. Some of the machines that we have even used solar, so that we can make sure that we combine consumption of energy to protecting the environment, so green energy transition and all that. So basically, that’s the strand that we do. So, it’s about services around these commodities, making sure that we fulfill the interest of a producer and then the interest of the consumer as a trader. 

What is your Unique Selling Proposition (USP), what makes you stand out as a company?

I think basically what we do is that we are trying to carve a niche. I’ll start with an example of the mining. You know, when we entered this industry, we saw that a larger focus has been given to the multinationals, the big mining companies, the Newmont, AngloGold, the Goldfields. What we saw was that, let’s look at the other side, on the flip side, the other side of the coin are these guys who are working, but they don’t get the needed support. This sector is actually the largest employer, I would say, in Ghana. Currently, there are conservatively over two million people in a small-scale mining industry. But these guys are not catered for. One thing we identified was that along the mining value chain, right from going down, digging, bringing the ore out, processing it and then getting the gold to transport. It’s not just formal, it’s just very disorganized and very rudimentary. We saw that, okay let’s introduce a technology that will boost their operations. So, we’re looking at the production side, which there isn’t much problem. So, you see that they dig a pit or a shaft, they go in, they bring the ore. But over 70% of the challenge is about the processing of the ore. In the processing, they use what is known to them over decades. It’s a Chinese machine that they use, and on top of that, they use a lot of chemicals, which is mercury. Mercury today is documented as a very dangerous to the development of unborn children. It’s very dangerous to their formation. So, we thought, okay, why don’t we do green gold agenda? This agenda is to make sure that the miners can get optimum gold recovery without using mercury. When we meet miners, we tell them the economics mercury. It’s not about you poisoning only yourselves. You are polluting people along the water source. So basically, you are polluting several thousands of communities. Aside from that, you are killing yourselves. Even more dangerous is that you, are buying at an expensive rate. Actually, Mercury is expensive; we did a calculation of mercury and some components of our technology, and actually it could buy some components of our technology within three months. Mercury is very expensive. So, we ask them, ‘why do you buy expensive things to kill yourselves?’ So, we introduced this eco-friendly, mercury-free way of mining, where the miners can get a gold without having to kill themselves, and the recovery is high. We recently conducted a test in the Western Region, comparing our technology with that of the Chinese. After the on-site test, we sent the samples to a lab for final analysis. The results were stark: we achieved an 87% gold recovery, while the Chinese got about 17.5% gold recovery. The difference is clearly significant. Even aside from that, the technology allows the miners to work at a faster rate, and they don’t also kill themselves. These are actually the three wins: they are working at a faster rate, throughput or output is high, and they are doing more recovery. They are recovering more than 80% of their gold, and they are not using chemicals. These three wins, for me, trump basically what the Chinese offer in the system, and this will help the miners at least get something out of their sweat. 

How has impact monitoring been progressing? Has it been effective since its implementation last year, and how long has this system been in place?

We have been in the system for the past 4/5 years, and what we’ve realized was that it’s a journey…it’s a process. It’s not an end in itself. Because these miners have been accustomed to the use of the Chinese technology over decades, so they cannot change overnight. So what we saw was that, okay, a key actor in the mining industry in Ghana, of course, across Africa, is actually the state or the government. So we were able to convince the government to say, okay, we are a signatory to the Minamata Convention, which is against the use of mercury; if you want to eradicate mercury usage in Ghana, we have to get them an alternative. If you ask the ordinary miners, ‘why are you using mercury?’ They ask you, in return, ‘what alternative do I have?’ So, if there is an alternative, then definitely they would be compelled to use that alternative and move away from the use of mercury. We engaged the government, and they were convinced enough. So the plan was to get some of the machines, give them to the miners, and set up payment plan, which will take, let’s say, two or three years to pay off, because it’s a quite capital-intensive. Of course, mining plants are very expensive, so the government stepped in to do that, so that, on top of that, they will use that to regulate the miners, to stop “galamsey”. So, we saw our technology as the vehicle toward the formalization of small-scale mining. If you formalize the small-scale mining sector, you basically reduce the tendencies of “galamsey”, which is illegal operations. So, you get a processing plant for them, you have a dedicated jurisdiction, you mount the machine. Then you organize the miners into cooperatives, and then they will be using the machine. This is a very good intervention which the previous government did. We are in talks with the current government to replicate something similar so that we can keep the miners organized. When the groups are well-organized and are sited at a particular location, they can effectively monitor their operations in that area. They (government) can even tax them, because they can get your gold, because now there is a gold board in place, which is the sole buyer of Ghana’s gold. So now, they can get the right people to get the gold, and then the export. It’s not just in Ghana, actually, Zambia is replicating it. Their Minister for mines was here, I think, two, three years ago. He saw the model, and contacted us. We went there, and now they are replicating the same model. So they have grouped their gold miners into cooperatives, and they will be resourcing them with mineral processing technology so that they don’t pollute. They produce more, they recover more, and they state can make money out of it. 

What is the reason behind prioritizing small-scale miners? 

We have been focusing much more on a small-scale miners, because we think it’s a sector that can transform both the rural and national economy of Ghana. We have many communities…So out of let’s say the 13 (16) or so regions that we have in Ghana, there are only two regions that we don’t do mining. Even that is yet to start. We have only Greater Accra and Oti regions. There are mining activities in all the other regions. So mining is a huge component. Of course, it’s the largest in terms of export earnings in Ghana. If you are to really focus and have at least some attention to the small scale mining sector, you could transform the rural economies in terms of employment with a youth growing up, we can employ a lot of people within the mining space, but cautiously, because you want to make sure that the operations do not destroy or pollute the river bodies or intoxicate the local people with chemicals. That’s why as at now, we have been focusing on the small-scale. But we also do because we are registered with the minerals commission as a mine support service company. So we provide support service for both small-scale and large-scale. Just that we’re focused on the small-scale because of the potential there, in terms of creating jobs and wealth within the rural economies, and the wealth for the for the state, and then to make sure that we’re able to engineer the rural population and the sector to be like the formal guys. So basically, what we provide is, we tell people that we want to provide small plants that will make you look like AngloGold or Newmont. You’re operating decently and you’re getting a decent source of income. 

What are the key challenges and potential opportunities in the mining sector overall?

Mining has been happening in Ghana for the past 100 years. There’s always the common literature about scarce resources, or the paradox of the plenty. There are these resources here, especially now, they use the comparative case of Obuasi and Johannesburg, mining almost started in the same period of time, but Johannesburg is up there, and Obuasi still is, down there. So, I think basically it’s about using the resources to advance the economy of Ghana. It hasn’t happened so because of the architecture of the mining space. The challenge has been that we have been unable to use the resources that come from gold mining to invest in the local people in the communities. I think this is what is very important for a state or government to look at. Also, the economics of it is that we have for so long, depended on royalties and taxes when it comes to the benefits you can gain from mining. I think it’s about time governments sit down and say, okay, if you want to make absolute benefit in mining, we also have to partake in a risk of investment. If for example, there was a recent discovery of lithium here in Ghana. Atlantic lithium spent money to discover the lithium. If the state of Ghana wants to benefit, you cannot just sit down and let the company invest and discover it and think you can get 50% share. No, because it’s a private entity. If you want to partake or get a larger share, you also invest in the resources. So I think if a government wants an equity share that’s respectable, and at least makes sense in terms of having enough to develop your country, they have to invest, invest in the geology, which is the exploration of these mineral resources, and then develop it, then we can gain absolute benefit. If you are dependent on taxes and royalties, these are very insignificant if you want to really transform your economy. I think this has been one of the key challenge when it comes to mining. But we tell people that there are still benefits. The gold rush period in America, today Canada, Australia, most of these economies developed on the back of gold or mining. You can develop the other productive economic sectors using mining. Agriculture, for example, today, mostly Ghana is a consumption-based economy. Even the wheat, the corn, they are still imported so that we can meet demand. If this is to happen, what we have to do is that we develop the mining sector. The revenues from the mining sector can be used to push the agriculture sector. But having to develop agriculture sector alone, there are difficulties in it. That’s why, in the, you know, in the US and other economy, they use mining as a stronger base to develop the other productive economic sectors. This is the opportunity that we have. The resources are there, they are not finished yet. Obuasi’s 100 years of gold is not even up to 10% of the potential of Obuasi. There is still a lot of gold there. So, it’s up to the state to formalize and reshape their policies to make sure that they’re able to attract private investment, and also, they’re able to invest themselves to make more gains.

What is the way for the next five years? What would you like to achieve? 

Our vision is basically to transform the commodity value chain, where there are shortages within the chain from production to consumption, we make sure that we’ll be able to identify the problem within this chain and provide a solution. Basically, what we are looking at is to get some farmers to increase production, because Africa has the largest arable land globally. So, if there are lands, why don’t we, you know, increase production. It’s about sophistications in terms of agriculture, and increasing the farms size, making sure that there are tools and machines they can produce. Now, today, there is a, it’s a growing importance of AI in agriculture where some machines are able to detect even pests and insects, they know when to water and all that. I think all these things are yet, you know, to penetrate within the African or the Ghanaian system. So, it’s about us having to identify these growing IT and digital technologies, apply them in a commodity chain, so that we can improve production, then we can also be an exporter, rather than always importing. In the mining chain, what you’re looking at is that we can get minerals without having to destroy the environment, because today, sustainability is at the core of every intervention. We want to increase the pace of sustainability within all the extraction processes, whether gold or gemstone in Zambia or, let’s say, the diamond in Sierra Leone, the gold in Burkina Faso or Mali or Niger. We have the ability to make sure that there are sustainability aspects. Otherwise, you will basically wind down your wins. You win, and then it becomes a costly win, because you’ll be getting the gold, but the communities are polluted. Actually there was a case in Obuasi back then, where people used to have a skin infection because, AngloGold Ashanti at that time, emitted smoke everyday, so it affected the locals and created a lot of mess. So we have to make sure that our footprints, terms of the environment, is a good one, and that is where Commodity Monitor is really looking towards.
Mining can be destructive, going for commodities can be destructive, whether it’s extracting oil, gold or diamond. We just need to be environmentally cautious. That’s what we want to bring in as we ramp up our production and miners want to produce more. We have to make sure they are environmentally safe and sound.

Are you currently involved in any ongoing projects?

Yes. When people ask us, what we do, we tell them, we provide engineering solutions. whether it’s within the agricultural, mining, oil and gas or energy sectors. What we are working on is, we are constantly changing our machines everyday, because gold, for example, is very dicey. Gold in Obuasi is different from the gold in Tarkwa, Similarly, it’s different from the gold in Wa in upper west, and also different from gold in upper east. So, we adjust the machines and we fine-tune it to match the latest technology, so that if there is a need to change, we come in and we change it. We train the miners on the use of the technology, and then that’s how it goes. So, everyday, we’re constantly looking forward, especially with our broad network of partners in South Africa, Canada, the US, and China. What we do is create that Citadel, or let’s say, the pivot around which we can revolve around these, because we have to learn from them before we grow. We look forward to becoming a very competitive engineering company that takes a problem, we engineer it, and then we get a solution to better our economy and the lives of our people.

In a nutshell…

I think basically it’s, it’s about African government reinvigorating the focus on developing the commodity chain. So, if it’s about cocoa that you are trading, you have to be competitive enough to make the gains in cocoa. The money is not in cocoa…the money is in chocolate. So, it’s about processing and value addition. If it’s mining or any other mineral, it’s about beneficiation. Make sure you establish an industry that will feed in. Because as at now, within even local procurement in the larger mining companies, most of the things were being imported, whether it’s bolt and nut. We didn’t have companies here that will produce. It was recently that some companies started coming in, and now, we can produce just a balls for the ball mill machines and others. I think this is the way to go if you want to strengthen the economies, it’s about making sure that value addition happens here.