Ghana has finally unveiled its first commercial gold refinery in Accra, a move that the government is tagging as a game-changer for the country’s gold industry. The Royal Ghana Gold Refinery, which can process a whopping 400 kilograms of gold per day, is the latest attempt by Africa’s top gold producer to finally start making some real money off its precious metal. After all, what’s the point of being rich in resources if you can’t keep the wealth within your borders?
What They Are saying
This refinery, a partnership between Rosy Royal Minerals from India and Ghana’s central bank, is being hailed as a major step forward. With the central bank holding a 20% share, it’s clear that the government wants a bigger slice of the pie. Vice President Mahamudu Bawumia, who just so happens to be running for president in December, was all smiles at the grand opening. He declared that this new refinery marks “a new era” for Ghana, one that will supposedly curb gold smuggling and boost national revenue.
“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,” he said.
But let’s not get ahead of ourselves. Ghana has been exporting its gold in raw form for decades, while a significant amount of gold from unregulated miners, known locally as galamsey, continues to be smuggled out of the country. Will this new refinery really change that?
The refinery is expected to employ between 80 and 120 people directly, with an additional 500 jobs created indirectly. Sure, that sounds impressive, but is it enough to make a real dent in the country’s unemployment problem?
Why It Matters
Last year, Ghana held onto its crown as Africa’s biggest gold producer, with output hitting 4.03 million ounces, thanks in large part to small-scale and artisanal miners. And with projections for this year ranging between 4.3 million and 4.5 million ounces, the country is on track to surpass its 2024 gold output target.
The Bank of Ghana has also been busy, launching a gold purchase program in 2021 to shore up its reserves. So far, the bank has amassed 65.4 tons of gold, worth about $5 billion. The goal now? To get the refinery certified by the London Bullion Market Association (LBMA) as quickly as possible. According to Bank of Ghana Governor Ernest Addison, LBMA accreditation would allow the bank to “diversify and organically grow its foreign exchange reserves,” reducing Ghana’s dependence on external borrowing. But let’s not forget—certification is easier said than done.
Bottom Line
Meanwhile, Godwin Armah, the general secretary of the small-scale gold miners association, has warned that the refinery needs to be “transparent” with pricing and the gold quantities received if it wants to gain the trust and support of local miners. After all, trust isn’t something that can be bought, no matter how much gold you have.
