Ghana has officially opened a commercial gold refinery, the Royal Ghana Gold Refinery, in Accra, a significant step in the government’s efforts to add value to the country’s mineral resources.
The refinery, a joint venture between Rosy Royal Minerals of India and Ghana’s central bank, with the latter holding a 20% stake, has the capacity to refine 400 kilograms of gold per day.
Initially, it will source gold dore from small-scale and artisanal miners, with future plans to secure licenses for processing gold from large-scale mining operations.
Vice President Dr. Mahamudu Bawumia, who commissioned the refinery, emphasized that this facility is a strategic investment that aligns with the government’s vision to add value to Ghana’s mineral resources, thus retaining more economic benefits within the country.
He noted that, historically, Ghana has exported its gold in raw form, leading to significant revenue losses and missed job creation opportunities.
“The government of President Nana Addo Dankwa Akufo-Addo has been determined to make value addition a critical component of our export strategy since 2017, and the launch of this refinery is a key part of realizing that vision,” Dr. Bawumia stated.
He further explained that the Precious Minerals Marketing Company (PMMC) initially partnered with Rosy Royal Minerals Limited to actualize this vision, granting part of its land for the refinery’s construction, which began in 2018 and was completed in 2022 despite delays due to COVID-19.
The Bank of Ghana later took over PMMC’s interest in the refinery, while PMMC continues to serve as the National Assayer, ensuring quality and revenue assurance for the refinery’s products.
Dr. Bawumia expressed optimism that with the refinery’s ability to process gold locally, Ghana will be able to sell the refined gold at its appropriate value, thereby retaining its economic worth within the country and creating numerous job opportunities for the youth.
“In addition, the government’s intention to refine all gold produced in Ghana will further enhance our economic independence and resilience,” he added.
He highlighted that with the Bank of Ghana’s Domestic Gold Purchase Programme (DGPP), launched in 2021, and the establishment of the refinery, Ghana is now positioned as the gold hub of Africa.
This development marks a new era for Ghana and aligns with the government’s vision of building a resilient economy anchored on the country’s mineral resources.
Reflecting on the broader economic implications, Dr. Bawumia explained that Ghana’s current economic structure, heavily reliant on primary commodities and imports, has historically led to a depreciating currency. However, he expressed confidence that the right policies and deliberate use of natural resources could stabilize the cedi and reduce external borrowing needs.
Looking forward, Dr. Bawumia outlined his plans, should he become president, to invest in geological surveys and mapping of mineralized zones, ensuring that small-scale mining concessions in these areas remain 100% Ghanaian-owned.
He also emphasized the need for increased efforts towards land reclamation in areas degraded by mining and proposed the establishment of a Minerals Development Bank to support indigenous Ghanaians in the mining sector.
In conclusion, Dr. Bawumia stressed the importance of responsible sourcing for the refinery’s operations, given the ongoing challenges posed by illegal mining, known locally as galamsey.
He assured that his government would adopt practical policies to address these issues, prioritizing the small-scale mining sector while ensuring environmental protection. The commissioning of the Royal Ghana Gold Refinery represents a significant milestone in Ghana’s journey towards economic transformation and value addition in the natural resources sector.