Ghana opened its first commercial gold refinery in Accra on Thursday, marking a significant step in the country’s efforts to add value to its gold production and increase earnings from the precious metal, which has been mined for centuries.
The Royal Ghana Gold Refinery, with a capacity to process 400 kilograms of gold per day, will initially source gold dore from small-scale and artisanal miners, with plans to acquire licenses for processing gold from large-scale miners.
Currently, Ghana’s licensed gold producers export raw gold, while a substantial portion of output from unregulated artisanal miners, known locally as galamsey, is smuggled out of the country.
World’s Sixth-largest Gold Producer
The refinery is a joint venture between Rosy Royal Minerals of India and Ghana’s central bank, which holds a 20% stake. The facility is expected to employ 80-120 people directly and create 500 indirect jobs.
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Ghana maintained its position as Africa’s largest gold producer last year, with increased output from small-scale and artisanal miners pushing production to 4.03 million ounces.
According to GlobalData, Ghana is the world’s sixth-largest producer of gold in 2023, with output up by 10% on 2022.
Over the five years to 2022, production from Ghana decreased by a CAGR of 2.11% and is expected to rise by a CAGR of 0.37% between 2023 and 2027.
65.4 Tonnes Valued at $5 Billion
The West African nation, also the world’s second-largest cocoa producer, is on track to exceed its 2024 gold output target, with production expected to reach between 4.3 million and 4.5 million ounces.
In 2021, the Bank of Ghana launched a gold purchase program to build reserves through domestic acquisitions and support the cedi currency. Bank of Ghana Governor Ernest Addison says the program has accumulated 65.4 tonnes of gold, valued at around $5 billion.
The central bank is now focused on ensuring that the newly opened Royal Ghana Gold Refinery quickly obtains certification from the London Bullion Market Association (LBMA), enhancing its credibility on the global market.
