Ghana inaugurated its first commercial gold refinery in Accra on Thursday, marking a significant step in the country’s efforts to increase the value derived from its gold production. The Royal Ghana Gold Refinery, with a daily processing capacity of 400 kilograms, is set to source gold dore from small-scale and artisanal miners before expanding to large-scale miners.
The refinery is a joint venture between Rosy Royal Minerals of India and Ghana’s central bank, which holds a 20 percent stake. Speaking at the launch, Vice President Mahamudu Bawumia described the refinery’s opening as ‘a new era’ for Ghana’s gold industry. He highlighted that the facility would help curb gold smuggling and enhance national revenue from the precious metal.
‘By refining our gold domestically, we can ensure it is sold at fair value, retaining its economic benefits within our borders while creating jobs for our youth,’ Bawumia stated.
Currently, Ghana’s gold from licensed producers is primarily exported in raw form, with a significant portion of output from unregulated artisanal miners being smuggled out of the country. The new refinery is expected to employ 80-120 people directly and create an additional 500 indirect jobs.
Ghana, which retained its position as Africa’s leading gold producer last year with an output of 4.03 million ounces, is projected to surpass its 2024 production target, aiming for between 4.3 million and 4.5 million ounces.
The Bank of Ghana, which launched a gold purchase programme in 2021 to build reserves and support the cedi, has accumulated 65.4 tonnes of gold, valued at $5bn. Bank Governor Ernest Addison emphasised the importance of the refinery securing London Bullion Market Association (LBMA) certification to help the bank diversify its foreign exchange reserves and reduce reliance on external borrowing.
Godwin Armah, General Secretary of the Small-Scale Gold Miners Association, urged the refinery to maintain transparency in pricing and gold quantity processing to build trust and support from miners.
Africabriefing
