Ghana inaugurated its first commercial gold refinery in Accra, the capital, on Thursday.
This initiative by Africa’s leading gold producer aims to increase value and boost revenue from its centuries-old gold mining industry.
The Royal Ghana Gold Refinery, with a daily processing capacity of 400 kilograms of gold, will initially source gold dore from small-scale and artisanal miners. Plans are in place to acquire licenses to process gold from large-scale mining operations.
The refinery is a joint venture between India’s Rosy Royal Minerals and Ghana’s central bank, which holds a 20% stake in the project.
At the inauguration, Vice President Mahamudu Bawumia described the launch of the Royal Gold Refinery as “a new era” that would curb gold smuggling and enhance the country’s 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 typically exported in its raw form, while a significant portion of output from unregulated artisanal miners, known locally as galamsey, is smuggled out of the country.
According to Bawumia, who is running for president in the upcoming December elections, the refinery will directly employ 80-120 people and create 500 additional indirect jobs.
Last year, Ghana maintained its position as Africa’s top gold producer, with increased production from small-scale and artisanal miners boosting total output to 4.03 million ounces.
The West African nation, also the world’s second-largest cocoa producer, is on track to surpass its 2024 gold production target, with output projected between 4.3 million and 4.5 million ounces.
The Bank of Ghana initiated a gold purchase program in 2021 to build reserves through domestic acquisitions and stabilize the cedi currency.
Bank of Ghana Governor Ernest Addison noted that purchases have reached 65.4 tonnes, equivalent to $5 billion, and emphasized the importance of the refinery quickly obtaining London Bullion Market Association (LMA) certification.
Addison 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.