On Thursday, Ghana launched its first commercial gold refinery in Accra as part of an initiative to increase earnings from the country's centuries-old gold mining industry. The Royal Ghana Gold Refinery, with a processing capacity of 400 kilograms of gold per day, will primarily source gold from small-scale and artisanal miners before expanding to larger operations.
The refinery is a joint venture between Rosy Royal Minerals of India and the Bank of Ghana, which holds a 20% stake. During the opening ceremony, Vice President Mahamudu Bawumia highlighted the significance of the refinery in curbing gold smuggling and enhancing national revenue.
“With the capacity to refine our own gold, we can sell it at fair market prices, retain its economic value within the country, and create jobs for the youth,” Bawumia stated.
Currently, most of Ghana's gold is exported in raw form, and a significant portion of gold from unregulated artisanal miners is smuggled out of the country. The new refinery is expected to create 80-120 direct jobs and 500 indirect jobs.
Ghana, Africa's leading gold producer, saw a boost in output last year, reaching 4.03 million ounces, largely due to contributions from small-scale miners. The country is on track to surpass its 2024 gold production target, with projections between 4.3 million and 4.5 million ounces.
In 2021, the Bank of Ghana initiated a gold purchase program to build reserves and stabilize the cedi. Bank of Ghana Governor Ernest Addison reported that 65.4 tonnes of gold, valued at $5 billion, have been purchased under the program. Addison emphasized the importance of the refinery securing London Bullion Market Association (LBMA) certification to diversify and strengthen the bank's foreign exchange reserves.
Godwin Armah, General Secretary of the Small-Scale Gold Miners Association, stressed the need for the refinery to maintain transparency in pricing and gold quantities to earn the trust of small-scale miners.
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