Ghana launches first commercial Gold Refinery in Accra to boost earnings and value addition

Ghana inaugurated its first commercial gold refinery, the Royal Ghana Gold Refinery, in Accra on Thursday.

This marks a significant step in the country’s efforts to add value to its gold production and increase national earnings from the precious metal, which has been mined for centuries.

The refinery, capable of processing 400 kilograms of gold per day, will source gold dore from small-scale and artisanal miners. It plans to expand its operations by obtaining licenses to process gold from large-scale miners as well.

The refinery is a joint venture between Rosy Royal Minerals of India and Ghana’s central bank, with the latter holding a 20% stake.

Speaking at the inauguration, Vice President Mahamudu Bawumia described the launch as “a new era” for Ghana, emphasizing its potential to curb gold smuggling and increase the country’s revenue from gold.

“With our ability to refine gold locally, we can sell it at the appropriate value, allowing us to retain its economic benefits within our borders while creating numerous job opportunities for our youth,” said Vice President Bawumia.

Traditionally, Ghana’s gold from licensed producers has been exported in raw form, while a significant portion of output from unregulated artisanal miners, known locally as galamsey, is smuggled out of the country. The establishment of the refinery is expected to change this dynamic.

The Royal Ghana Gold Refinery will directly employ between 80 to 120 people and is anticipated to create around 500 indirect jobs. Vice President Bawumia, who is also a presidential candidate for the upcoming December elections, highlighted the economic impact of this initiative.

Last year, Ghana retained its position as Africa’s largest gold producer, with output reaching 4.03 million ounces, driven by increased production from small-scale and artisanal miners. The country, which is also the world’s second-largest cocoa producer, is on track to exceed its 2024 gold output target, with production projected between 4.3 million and 4.5 million ounces.

The Bank of Ghana launched a gold purchase program in 2021 to build reserves through domestic acquisitions and support the stability of the cedi. Bank of Ghana Governor Ernest Addison revealed that the central bank has purchased 65.4 tonnes of gold, valued at $5 billion. He also stressed the importance of the refinery obtaining London Bullion Market Association (LBMA) certification quickly.

“LBMA accreditation will enable the central bank to diversify and organically grow its foreign exchange reserves, while accumulating more gold reserves to reduce dependence on external borrowing,” Governor Addison noted.

Godwin Armah, General Secretary of the Small-Scale Gold Miners Association, emphasized the need for transparency in the refinery’s pricing and gold quantity assessments to build trust and support from its members.