Ghana, Africa’s leading gold producer, inaugurated its first commercial gold refinery in Accra on Thursday, marking a significant step towards adding value to its gold production and increasing national revenue from the precious metal. The Royal Ghana Gold Refinery, capable of processing 400 kilograms of gold per day, is expected to refine gold sourced from both small-scale artisanal miners and, eventually, large-scale miners once necessary licenses are acquired.
The refinery is a joint venture between India’s Rosy Royal Minerals and Ghana’s central bank, with a 20% stake. At the opening ceremony, Vice President Mahamudu Bawumia hailed the refinery as the beginning of “a new era” for Ghana’s gold industry, emphasising its potential to curb gold smuggling and maximise the country’s earnings.
“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,” Bawumia said. The refinery is expected to create between 80 to 120 direct jobs and an additional 500 indirect jobs, contributing to local employment.
Currently, Ghana’s gold is mostly exported in raw form, with significant quantities from unregulated artisanal miners—known locally as galamsey—being smuggled out of the country. The new refinery aims to address these issues by providing a local option for refining, thereby retaining more value within the country.
Ghana has maintained its position as Africa’s top gold producer, with output reaching 4.03 million ounces last year, driven largely by small-scale and artisanal mining. The country is on track to exceed its 2024 gold production target, with projections between 4.3 million and 4.5 million ounces.
The Bank of Ghana, which initiated a gold purchase program in 2021 to build reserves and stabilise the cedi currency, has acquired 65.4 tonnes of gold worth $5 billion under the scheme. Bank Governor Ernest Addison stressed the importance of the refinery obtaining London Bullion Market Association (LBMA) certification, which would enable the bank to diversify and grow its foreign exchange reserves organically, reducing reliance on external borrowing.
However, Godwin Armah, General Secretary of the Small-Scale Gold Miners Association, called for transparency in the refinery’s operations, particularly in pricing and the handling of gold quantities from small-scale miners, to build trust and ensure the industry’s support.
The launch of the Royal Ghana Gold Refinery represents a strategic move to enhance Ghana’s gold sector, offering the potential to transform the country’s economic landscape by capturing more value from its vast mineral wealth.
Melissa Enoch
Follow us on:
