The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has hinted that the establishment of the new gold refinery, Royal Gold Ghana Limited (RGGL), will help to combat gold smuggling and optimize the nation’s gold resource management.
Dr. Addison, who spotlighted the persistent issue during the high-profile inauguration of the refinery acknowledged that illegal gold exports have long plagued Ghana, a country rich in gold deposits, undermining its ability to maximize revenues from the precious metal. The root of the problem, he noted, lies in the absence of a reliable market for the artisanal and small-scale miners who contribute significantly to the country’s gold output.
With the launch of the RGGL refinery, the Governor emphasized a new chapter for Ghana’s gold sector. The facility is set to provide a stable and legitimate market for these miners, who have often been driven to the shadowy world of smuggling due to a lack of access to formal trading channels. This initiative is expected not only to curb the illegal gold trade but also to bolster transparency and accountability within the sector.
It is envisaged that as BoG leads efforts to streamline gold trading and close loopholes exploited by smugglers, the refinery’s success could mark a turning point for the country, enhancing its standing in the global gold market and ensuring that the wealth generated from its mineral resources benefits the nation as a whole.
The persistent lack of a reliable market for artisanal and small-scale miners has driven much of the gold smuggling in Ghana. Dr. Addison explained that the new refinery aims to address this issue by providing a stable and legitimate market for these miners. This, in turn, is expected to reduce incentives for smuggling and enhance transparency and accountability in the gold trading sector.
In 2021, the Ghanaian government instituted a 9-member committee to address the persistent issue of gold smuggling. Deputy Minister of Lands and Natural Resources George Mireku Duker, during the committee’s inauguration, stated, “People are smuggling our gold, and we want to prevent that. That is the purpose of this committee.”
Mr. Mireku Duker stressed the urgency of the committee’s mission, citing the decline in Ghana’s gold production statistics. He warned that if the trend continues, Ghana could lose its position as a leading gold producer in Africa. He also pointed out that the 3% withholding tax on unprocessed precious minerals from small-scale miners has exacerbated the smuggling problem, as some miners choose to export gold to avoid the tax.
With the recent opening of the Royal Gold Ghana Limited (RGGL) refinery, a new era in Ghana’s gold industry begins. Dr. Addison pointed out that this refinery will help grow the economy, reduce poverty, and improve people’s lives. By processing gold locally, the refinery can boost foreign exchange earnings, strengthen the country’s financial position, and protect the economy from external shocks.
