In a significant milestone for Africa’s top gold producer, Ghana inaugurated its first commercial gold refinery in the capital city of Accra on Thursday. The establishment of the Royal Ghana Gold Refinery aims to enhance value addition and maximize earnings from the precious metal, which has been mined in the region for centuries.
With a processing capacity of 400 kilograms of gold per day, the Royal Ghana Gold Refinery will source gold dore from small-scale and artisanal miners. Plans are underway to acquire licenses to process gold from large-scale miners as well. The refinery represents a strategic partnership between India’s Rosy Royal Minerals and Ghana’s central bank, which holds a 20% stake.
Speaking at the opening ceremony, Vice President Mahamudu Bawumia heralded the launch as the dawn of “a new era” for the country’s gold industry. He emphasized that the refinery would play a crucial role in curbing gold smuggling and boosting national revenue from the sector.
“With the ability to refine our gold, we will be able to sell it at the appropriate price, enabling us to retain its economic value within our borders while creating numerous jobs for the youth,” Bawumia stated.
Currently, gold from licensed producers in Ghana is exported in its raw form, while a significant portion of the output from unregulated artisanal miners, locally known as galamsey, is illicitly smuggled out of the country. The new refinery is expected to employ between 80 to 120 people directly and create approximately 500 indirect jobs.
Ghana maintained its position as Africa’s leading gold producer last year, with increased contributions from small-scale and artisanal miners pushing output to 4.03 million ounces. The West African nation, also the world’s second-largest cocoa producer, is on track to exceed its 2024 gold production target, with forecasts predicting outputs between 4.3 million and 4.5 million ounces.
In an effort to bolster its reserves and stabilize the national currency, the Bank of Ghana initiated a gold purchase program in 2021, focusing on domestic acquisitions. Bank of Ghana Governor Ernest Addison revealed that the bank’s gold purchases have reached 65.4 tonnes, valued at $5 billion. He also expressed the institution’s commitment to ensuring that the refinery swiftly attains London Bullion Market Association (LBMA) certification.
