Ghana inaugurates first gold refinery
Ghana has opened its first gold refinery after years of mining. The move aims to enhance value addition and increase profits from its gold production.
The facility situated in the country’s capital Accra, represents a partnership between Rosy Royal Minerals of India and Ghana’s central bank, which holds a 20% stake. Dubbed the Royal Ghana Gold Refinery, the development has a processing capacity of 400 kg of gold per day and will initially focus on refining gold dore from small-scale and artisanal miners before expanding to include gold from large-scale miners.
Benefits
The refinery is expected to provide direct employment for 80-120 people and create an additional 500 indirect jobs. Ghanaian Vice President Mahamudu Bawumia said the project is a significant step forward for the country. He emphasized that refining gold domestically would allow Ghana to sell it at fair prices, retain more economic value within the country.
The development is also seen as a strategic move to curb gold smuggling, particularly from unregulated artisanal mining activities, and to enhance Ghana’s gold revenues. Despite being Africa’s top gold producer, much of Ghana’s gold has traditionally been exported in raw form, often through smuggling routes.
In 2021, the Bank of Ghana launched a gold purchase program to bolster its reserves and stabilize the national currency, the cedi. The bank has purchased 65.4 tons of gold, valued at $5 billion, as part of this initiative. Bank Governor Ernest Addison highlighted the importance of obtaining certification for the refinery from the London Bullion Market Association (LBMA), which would help diversify and grow Ghana’s foreign exchange reserves and reduce reliance on external borrowing.
The general secretary of the Small-Scale Gold Miners Association, Godwin Armah, stressed that transparency in gold pricing and quantities would be crucial for the refinery to gain the trust and support of its members.
