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Bank of Ghana to have first right of refusal for all gold mined

The government of Ghana has started implementing a policy that gives the Bank of Ghana (BoG) the right to purchase any amount of gold mined in Ghana.

Vice President Mahamudu Bawumia disclosed the report and said the move aims to have the first right of refusal for all gold mined in the country as part of measures to stabilize the country’s currency and ensure macroeconomic stability.

The government is also working to help acquire the necessary certification for refineries in the country as well as help set up more. Speaking at the launch of a collaboration between the Accra Business School and South East Technological University, Ireland, Vice President Bawumia said Government has been and will continue to implement forward-looking measures to ensure the country is not buffeted unnecessarily by external economic shocks as is occurring right now across the world, leading to the country engaging the International Monetary Fund for balance of payments assistance.

One of the key measures, the Vice President emphasized is the right of first refusal for the purchase, at world market prices, of all gold mined in the country to build up the country’s gold reserves to ensure stability of the currency.

New policy

“Notwithstanding being one of the big gold producers in the world, Ghana’s reserves of gold at the central bank at the end of 2021 was only 8.7 kilograms. It was against this background that the Bank of Ghana started a Gold purchase program from gold producers to build up its foreign exchange reserves.

“To enhance this programme, Government will implement a new policy which is already backed by law under which the central bank (Bank of Ghana) will have first right of refusal for all gold mined in Ghana. The central bank will purchase the gold at world market prices and the mining companies will export the portion that is not purchased by the Bank of Ghana. Ultimately, once we accumulate enough gold, future borrowing and our currency can be backed by gold. This will stabilize the cedi long term,” Dr Bawumia explained.

Ghana must also increase the benefits she accrues from the mining of her minerals through value-addition, the Vice President insisted, hence the recent commissioning of a National Assay Lab by the Precious Minerals Marketing Company and the ongoing efforts to acquire international certification for existing refineries.

“We must also deepen our industrialization through value addition to gold. Even though Ghana has two gold refineries, none has London Bullion Market Association (LBMA) certification. This limits our full participation in the gold value chain. We will urgently work towards LBMA certification for our refineries in the next few years.

“Value addition to minerals such as lithium and bauxite will similarly be pursued in addition to the One District One Factory (1D1F) programme and the continued implementation of the automotive sector policy.”

 

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