Ghana’s gold industry has reached a new milestone. The country’s first gold refinery was inaugurated on August 8. The “Royal Ghana Gold Refinery” has a refining capacity of 400 kilograms of gold per day, representing an annual production of 120 tonnes. This is enough capacity to process Ghana’s entire gold production, which amounts to approximately four million ounces per year. Located in Accra, this facility will allow gold to be processed locally. Processing, which was previously impossible, caused enormous losses to the country. “Between 2018 and 2023, Ghana exported most of its annual production (3.9 million ounces) in raw form“, according to Mahamudu Bawumia, Vice President of Ghana.
This initiative provides a structured market for artisanal and small-scale miners, the refinery helps to regularize the gold sector. According to Ernest Addison, Governor of the Bank of Ghana, the refinery will eventually contribute to the fight against gold smuggling which threatens the stability of the sector in the country. This project is part of a broader Africa-wide strategy aimed at adding value to natural resources before export, in order to derive greater economic benefits.
A turning point for the Ghanaian economy
For Amoatia Ofori Panini, traditional chief of the Akyem tribe, “the inauguration of this refinery symbolizes a turning point for Ghana, which is finally beginning to fully exploit its natural resources“. The refinery, capable of producing 99.99% pure gold (24 carats), will directly employ between 80 and 120 people and create around 500 indirect jobs. The Ghanaian government aims to have the Royal Ghana Gold Refinery certified by the prestigious London Bullion Market Association.
It will join the Rand Refinery in South Africa, the only other refinery on the continent to have this certification. This recognition would not only guarantee the quality of the refined gold, but also its ethical origin, free of conflict and human rights abuses. The new refinery is majority-owned by Rosy Royal Minerals Ltd., an Indian company, which holds 80% of the shares. The remaining 20% is owned by the Bank of Ghana. This project complements the efforts already underway to formalize the country’s artisanal and small-scale mining sector.
In 2022, the mining sector represented approximately 12% of Ghana’s GDP, and in 2023, gold accounted for nearly 40% of export revenues, contributing 10% to the national GDP. A major economic impact, according to the Ghanaian authorities. The new refinery is crucial to mastering the gold value chain, which has a significant impact on the national economy. It represents a guarantee of development for the country, allowing it to better exploit and enhance the value of its natural resources.
