Ghana opened its first commercial gold refinery in Accra, the capital, on Thursday August 8.
This is part of an effort by Ghana— Africa’s leading gold producer to add value and earn more from the precious metal, which has been mined for centuries.
Before obtaining licenses to process gold from large-scale miners, the Royal Ghana Gold Refinery, which has the capacity to process 400 kilograms (kg) of gold per day, will source gold dore from small-scale and artisanal miners.
Rosy Royal Minerals of India and the central bank of Ghana jointly own a 20% stake in the refinery.
Vice President Mahamudu Bawumia stated during the ceremony that the opening of the Royal Gold Refinery marked “a new era” that would assist in containing gold smuggling and increasing national earnings from the precious metal.
“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,” he said.
Ghana’s gold from licensed producers is exported in raw form while a sizeable amount of output from unregulated artisanal miners, locally called galamsey, is smuggled outside the country.
The refinery will employ 80-120 people directly and create 500 indirect jobs, according to the Vice President, who is running for president in the December polls.
As small-scale and artisanal miners increased production to 4.03 million ounces, Ghana maintained its position as Africa’s largest gold producer.
The West African country, which is likewise the world’s number two cocoa producer, is on track to beat its 2024 gold output target, with production seen between 4.3 million and 4.5 million ounces.
The Bank of Ghana launched a gold purchase programme in 2021 to build reserves through domestic purchases and cushion the cedi currency.
Bank of Ghana Governor Ernest Addison said purchases totalled 65.4 tones, equivalent to $5 billion and the bank was keen on the refinery acquiring the London Bullion Market Association (LMA) certification quickly.
The BOG head said LBMA accreditation for the refinery would help the bank “diversify and organically grow its foreign exchange reserves and accumulate more gold reserves to reduce dependence on external borrowing.”
The general secretary of the small-scale gold miners association, Godwin Armah, said the refinery has to be “transparent” with pricing and gold quantities received from members to help earn their trust and support.
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