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20% of refined gold to be sold to central bank in Ghana

As part of measures of using gold to buy oil-products, the Government of Ghana has issued orders to mining companies in the country to sell 20% of refined gold to Bank of Ghana.

Vice-President Mahamudu Bawumia explained that, the gold to be purchased by the Bank of Ghana and the PMMC will be in cedis at spot price with no discounts. Large scale miners will sell their percentage to Central Bank while community mining schemes and licensed small-scale miners will to sell their gold to the government through PMMC.

Mining industry

“The Bank of Ghana and the Precious Minerals Marketing Company (PMMC) will coordinate with the large scale mining companies to ensure compliance with this directive. This is part of measures we are taking to tackle dwindling of foreign currency reserves,” said Mahamudu Bawumia.

The Mining industry of Ghana accounts for 5% of the country’s GDP and minerals make up 37% of total exports, of which gold contributes over 90% of the total mineral exports. Thus, the main focus of Ghana’s mining and minerals development industry remains focused on gold.

The country is one of the top two gold producers in the world. Ghana is one of the top two gold producers in the world. However, 35% of its output is from the artisanal and small-scale gold miners. The unregistered also fall in this category. The government made registration mandatory for all the miners under the Minerals and Mining Act, 2006 to cub problem of conflict, informality, poverty, illegality and lack of state control.

 

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