Ghana is set to refine up to 52,000 kilogrammes of gold annually following a new agreement between the Ghana Gold Board (GoldBod) and Gold Coast Refinery Limited, a move aimed at boosting value addition in the country’s gold sector.
The agreement, signed on Tuesday, January 20, forms part of government efforts to shift Ghana from exporting raw gold to refining the precious metal locally before export, thereby increasing national earnings from the sector.
Mr Sammy Adu Gyamfi, Chief Executive Officer of GoldBod, signed on behalf of Ghana, while Dr Said Deraz, Chief Executive Officer of Gold Coast Refinery Limited, signed for the Egyptian-owned company.
The agreement focuses on refining gold sourced from artisanal and small-scale mining operations.
Under the partnership, Rand Refinery – Africa’s only London Bullion Market Association (LBMA)-accredited refinery will provide technical and commercial support as Ghana works towards obtaining LBMA accreditation.
This would enable the country to refine gold from both small-scale and large-scale mining companies.
Each refined gold bar will bear the emblems of GoldBod, the Ghana Standards Authority (GSA), the Bank of Ghana (BoG) and Gold Coast Refinery, and will meet internationally accepted standards.
Speaking at the signing ceremony, Mr Gyamfi noted that although Ghana hosts the largest gold refinery in the sub-region, it has operated far below capacity, with about 99.9 percent of gold exported in raw form.
He said this trend would change under the new agreement.
He announced that gold refining would commence on February 1, 2025, with Ghana entitled to a 15 per cent free share of profits from investments in Gold Coast Refinery.
According to him, local refining would help Ghana maximise benefits from its mineral resources through increased tax revenues and dividends, improved foreign exchange inflows, enhanced gold traceability, and job creation, including opportunities generated through 24-hour refinery operations.
“The millions of dollars we pay as refinery charges to facilities in Dubai, Switzerland, India, Hong Kong and other countries will now remain within our banking system and economy,” Mr Gyamfi said.
He reaffirmed the government’s commitment to the full implementation of the agreement and collaboration with key stakeholders, including the Ghana Chamber of Mines, to bring large-scale mining firms on board.
Dr Deraz described the agreement as a turning point in Ghana’s long-standing role as an exporter of raw gold, adding that it would accelerate efforts to establish an LBMA-accredited refinery in the country.
He said challenges that had constrained operations at Gold Coast Refinery since its commissioning in November 2016 had been resolved, and the facility now had the capacity to process up to 180 metric tonnes of gold annually.
Under the agreement, Gold Coast Refinery will receive gold dore from GoldBod, refine it into bullion and export the finished product.
Dr Deraz said this value addition would increase export earnings, create jobs and support Ghana’s industrialisation agenda.
He pledged the commitment of Gold Coast Refinery and its partner, Rand Refinery, to working closely with GoldBod to ensure effective implementation and measurable outcomes.
Alhaji Yusif Sulemana, Deputy Minister of Lands and Natural Resources, commended the companies for their investment and confidence in Ghana’s economy, and assured them of government support and a conducive operating environment.