Vice President Dr. Mahamudu Bawumia recently inaugurated the Royal Ghana Gold Refinery (RGGR), a US$100million state-of-the-art of gold refinery set to reshape the country’s gold industry by adding value to the precious metal.
The refinery is seen as major boost towards economic transformation and industrialisation, and is envisaged to position the country as a gold-hub.
Dr. Bawumia said the refinery’s strategic importance is not only as a key asset in the natural resources sector but also a critical component of government’s broader economic agenda of value addition.
The refinery is a joint venture between government, through the Bank of Ghana (BoG), and Rosy Royal Minerals Limited.
The facility will enable the country to process and refine gold locally, reversing a long-standing practice of exporting raw gold and missing out on its full economic benefits.
The refinery is expected to enhance revenue generation and create jobs within the sector, marking a significant step toward economic transformation and industrialisation.
The transition from exporting raw gold to refined gold will significantly boost domestic tax revenue and generate employment. The refinery is projected to create 80 to 120 direct jobs and an additional 500 indirect jobs.
It will also enable Ghana to refine gold to a purity of 99.99 percent, meeting the standards of the internationally recognised London Bullion Market Association (LBMA) Good Delivery bars.
The Vice President also announced plans to back the cedi with gold, leveraging the country’s enhanced gold reserves made possible by the new refinery.
“This initiative is expected to provide a much-needed anchor for the cedi, which has been plagued by volatility due to external shocks and fiscal challenges.”
Meanwhile, Minister for Lands and Natural Resources, Samuel Abu Jinapor, disclosed that gold exports from the country for first-half of this year amounted to some US$5billion and are projected to reach at least US$10billion by year-end.
He noted that the refinery will significantly contribute to the local jewellery industry, providing Ghanaian jewellers with access to responsibly-sourced, refined gold for production – making it easier to hallmark such jewellery for the international market.
Gold alone has contributed approximately 96 percent of the country’s mineral export revenues since 2004, according to data from the Ghana Chamber of Mines.
Value addition has long be touted as key to realising more revenue from natural resources, hence investing more in this direction is long overdue.
