Ghana has inaugurated its first commercial gold refinery in Accra, marking a significant step for Africa’s top gold producer in adding value and increasing revenue from its gold resources. The Royal Ghana Gold Refinery, which boasts a daily processing capacity of 400 kilograms, will initially focus on refining gold dore from small-scale and artisanal miners, and later expand to include large-scale miners following licensing.
The refinery is a joint venture between Rosy Royal Minerals from India and Ghana’s central bank, which holds a 20% stake. Vice President Mahamudu Bawumia emphasized that the new facility heralds “a new era” for Ghana, aiming to reduce gold smuggling and enhance national earnings from the metal. “By refining our gold, we can sell it at the right price, keeping its economic value within our borders and creating numerous jobs for the youth,” Bawumia stated.
Currently, much of Ghana’s gold is exported in raw form, with a significant portion from unregulated artisanal mining, known locally as galamsey, being smuggled out of the country. The new refinery is expected to directly employ between 80 and 120 people and generate around 500 indirect jobs. Bawumia, who is also a presidential candidate in the upcoming December elections, highlighted the economic benefits of this development.
Last year, Ghana maintained its position as Africa’s leading gold producer, with production reaching 4.03 million ounces due to increased output from small-scale and artisanal mining. The country, which is also the world’s second-largest cocoa producer, is on track to surpass its 2024 gold production target of 4.3 to 4.5 million ounces.
In addition, the Bank of Ghana initiated a gold purchase program in 2021 to bolster reserves and support the cedi currency. Bank Governor Ernest Addison noted that the bank has acquired 65.4 tons of gold, worth approximately $5 billion, and is eager for the refinery to achieve London Bullion Market Association (LBMA) certification. This accreditation would aid in diversifying and organically growing the bank’s foreign exchange reserves while reducing reliance on external borrowing.
Godwin Armah, General Secretary of the Small-Scale Gold Miners Association, emphasized the importance of transparency in the refinery’s pricing and gold handling to build trust and garner support from its members.
