Ghana, Africa's leading gold producer, has taken a significant step towards maximizing its gold wealth by inaugurating a new commercial gold refinery in Accra.
The Royal Ghana Gold Refinery, a joint venture between Rosy Royal Minerals of India and the Bank of Ghana, marks an important step for the country's gold industry. It aims to curb smuggling and generate greater economic benefits from the precious metal.
The gold refinery, with a daily processing capacity of 400 kilograms, will initially source gold ore from small-scale and artisanal miners. It also plans to obtain licenses to process gold from large-scale producers.
"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," said Vice President Mahamudu Bawumia at the opening ceremony.
Ghana's gold from licensed producers has historically been exported in raw form, while a significant amount of output from artisanal miners (known locally as "galamsey") has been smuggled outside the country. The refinery is expected to create 80-120 direct jobs and 500 indirect jobs.
The Bank of Ghana, which launched a gold purchase program in 2021 to build reserves and stabilize the cedi currency, sees the refinery as crucial for diversifying foreign exchange reserves and reducing reliance on external borrowing.