Ghana to refine gold locally in bid to capture more value

Ghana has taken a decisive step towards keeping more value from its gold industry, signing a new agreement that will see the precious metal refined locally before export.

• Ghana has signed a new deal to refine gold locally, reducing its reliance on raw exports.
• The agreement involves GoldBod, Gold Coast Refinery, and South Africa’s Rand Refinery.
• Gold refining is set to begin in February 2025 with plans to meet global bullion standards.
• Authorities say the move will boost forex inflows, jobs, and national revenue.

The Ghana Gold Board, known as GoldBod, on Tuesday confirmed it had entered into a partnership with Gold Coast Refinery Limited to refine gold sourced from artisanal and small-scale mining operations.

The move aligns with the government’s broader push to deepen value addition in the mining sector and maximise national earnings.

Under the agreement, Ghana is expected to refine about one metric tonne of gold annually. Although the country hosts one of the largest refineries in the sub-region, the vast majority of its gold has historically been exported in raw form. GoldBod says that the pattern is set to change.

“About 99.9 per cent of our gold has been exported without refining,” said Sammy Adu Gyamfi, chief executive officer of GoldBod, adding that the new arrangement would mark a turning point in how Ghana benefits from its mineral wealth.

The deal was signed by Gyamfi on behalf of GoldBod and by Said Deraz, chief executive of Gold Coast Refinery Limited. It also brings in South Africa’s Rand Refinery, Africa’s only London Bullion Market Association-accredited refinery, to provide technical and commercial support.

The support is expected to strengthen Ghana’s bid to secure LBMA accreditation, particularly for gold produced by large-scale mining firms.

All refined gold bars will carry the emblems of GoldBod, the Ghana Standards Authority, the Bank of Ghana, and Gold Coast Refinery, and will meet international quality standards.

Gold refining is scheduled to begin on 1 February 2025. As part of the agreement, Ghana will receive a 15 percent free share of profits from investments in Gold Coast Refinery.

GoldBod says the initiative will improve foreign exchange inflows, boost tax revenue and dividends, enhance traceability across the gold supply chain, and create direct and indirect jobs through round-the-clock refinery operations.