In a significant step towards maximizing its gold resources, Ghana officially opened its first commercial gold refinery on Thursday. The Royal Ghana Gold Refinery, located in the capital city, marks a new era for the African nation, renowned as the continent’s leading gold producer.
With a daily processing capacity of 400 kilograms, the refinery will primarily source its raw material from small-scale and artisanal miners. It is a joint venture between India’s Rosy Royal Minerals and Ghana’s central bank, which holds a 20% stake.
Vice President Mahamudu Bawumia hailed the refinery as a crucial step in combating gold smuggling and increasing the country’s revenue from the precious metal. By refining gold domestically, Ghana aims to capture greater value and create employment opportunities, especially for the youth.
Ghana’s gold production has been on the rise, with small-scale and artisanal miners contributing significantly to the overall output. However, a substantial portion of this production, often referred to as “galamsey,” is smuggled out of the country. The new refinery is expected to address this issue by providing a legal and profitable channel for these miners.
The refinery is projected to create over 600 jobs, both directly and indirectly, contributing to the nation’s economic growth. As Ghana strives to diversify its economy, the gold refinery is seen as a key component of its development strategy.
The Bank of Ghana, a major shareholder in the refinery, has been actively purchasing gold from local miners to bolster the country’s foreign exchange reserves. The central bank’s governor, Ernest Addison, expressed optimism about the refinery obtaining the prestigious London Bullion Market Association (LBMA) certification, which would further enhance Ghana’s position in the global gold market.
While the refinery is seen as a positive development, small-scale miners have called for transparency in pricing and gold quantities to ensure fair treatment and build trust.