Ghana, the continent’s top producer of gold, opened its first commercial refinery in Accra on Thursday, a major step toward enhancing the value of its output and raising domestic gold revenue.
The Royal Ghana Gold Refinery with a processing capacity of 400 kg/day is anticipated to refine gold from small-scale artisanal miners as well as, eventually, large-scale miners when the required licences are obtained.
The refinery is a collaboration between India’s Rosy Royal Minerals and Ghana’s central bank, with a 20% stake.
In his address at the opening ceremony, Vice President Mahamudu Bawumia celebrated the refinery as the beginning of “a new era” for Ghana’s gold industry, undermining its potential to reduce gold smuggling and maximize the country’s earnings.
Bawumia said, “With the ability to refine our gold, we will be able to sell it at the appropriate price, enabling us to retain its economic value within our borders while creating numerous jobs for the youth.”
It is anticipated that the refinery will contribute to local employment by creating 80–120 direct jobs and an additional 500 indirect jobs.
Ghana currently exports the majority of its gold in raw form, with large amounts coming from artisanal miners operating outside the law (referred to as galamsey in the local dialect) that are smuggled out of the nation. By offering a local choice for refining and keeping more value within the nation, the new refinery seeks to address these problems.
Ghana continues to be the continent’s leading producer of gold, with 4.03 million ounces produced last year mostly from artisanal and small-scale mining.
According to forecasts, the nation will produce between 4.3 million and 4.5 million ounces of gold in 2024, exceeding its target.
The Bank of Ghana purchased 65.4 tonnes of gold for $5 billion as part of a campaign to stabilize the cedi currency and increase reserves, which it started in 2021.
The Bank Governor, Ernest Addison emphasized the significance of the refinery acquiring certification from the London Bullion Market Association (LBMA) to reduce the bank’s dependency on external borrowing
This certification would allow the bank to diversify and expand its foreign exchange reserves naturally.
Meanwhile, the General Secretary of the Small-Scale Gold Miners Association, Godwin Armah demanded openness in the refinery’s operations, especially about pricing and the management of small-scale miners’ gold yield to boost confidence and win over the industry.
