Ghana, Africa’s leading gold producer, has launched its first gold refinery to capture more value from its abundant natural resources.
The Royal Ghana Gold Refinery is set to process 400 kilograms of gold daily, primarily sourcing raw materials from artisanal and small-scale mines, which contribute about one-third of Ghana’s annual output of about 4 million ounces, Bloomberg reported.
According to the Bank of Ghana Governor Ernest Addison, “This refinery will play an important role in reducing gold smuggling which has been a major challenge for the country over the years by providing a ready market for artisanal and small-scale miners,”
“This gold refinery can mitigate the incentive for smuggling and help promote transparency and accountability in gold trading,” he said.
Rosy Royal Minerals Ltd. of India holds an 80% stake in the refinery, with the Bank of Ghana owning the remaining 20%. The refinery is part of broader efforts to formalize Ghana’s artisanal and small-scale gold mining sector.
The central bank has been purchasing gold from small miners to bolster its foreign exchange reserves and address a weakening currency—a strategy that other African countries, including Zimbabwe, Uganda and Madagascar, have either adopted or are considering.
The plant aligns with a broader continent-wide initiative to add value to natural resources before exporting them, aiming to secure greater economic benefits for African countries.
“Our failure to successfully ensure value addition across the entire resource chain has meant that we have been unable to properly harness the benefits of being among the top 10 gold producers in the world,” said Finance Minister Mohammed Amin Adam.
The Ghanaian government is currently in discussions with the London Bullion Market Association, which certifies responsibly sourced gold, to help small-scale miners gain access to a broader market.
“If we work hard, we can achieve LBMA status,” said Eric Santeng, a director at Royal Ghana Gold. “This status is within our grasp but requires the concerted effort of all.”
