By Kizito CUDJOE
A US$100million state-of-the-art gold refinery – Royal Ghana Gold Refinery (RGGR) – is set to transform the country’s gold industry by boosting value addition.
Currently, a large portion of locally produced gold is exported in its raw form. The new facility is therefore viewed as a significant step toward real value addition, retention, transformation and industrialisation. It is envisioned to position the country as a gold-hub in Africa while addressing the persistent issue of currency instability.
Speaking at the inauguration, Vice President Dr. Mahamudu Bawumia noted the refinery’s strategic importance not only as a key asset in the natural resources sector but also a critical component of government’s broader economic agenda.
“Today, we celebrate not just a new facility but a testimony of our government’s commitment to adding value to our natural resources, creating jobs and ensuring sustainable economic growth,” he stated.
The refinery is a joint venture between government, through the Bank of Ghana (BoG), and Rosy Royal Minerals Limited. Equipped with advanced technology that meets international standards, the facility will enable Ghana 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.
Dr. Bawumia emphasised the economic implications of this shift, noting that the transition from exporting raw gold to refined gold wiill 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 standards of the internationally recognised London Bullion Market Association (LBMA) Good Delivery bars.
“This refinery will offer a premium to gold exported from Ghana,” Dr. Bawumia said. “With the ability to locally refine our gold, we will be able to sell it at its appropriate price; retaining its economic value within our borders and creating numerous job opportunities for the youth.”
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.
“Given Ghana’s strategic position in global gold production, we are more than ready to realise significant benefits in the cedi’s management,” he remarked. 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.
The Vice President also addressed the ongoing challenges of illegal mining, which pose significant environmental and economic threats. Illegal mining not only damages the environment but also risks contaminating the gold supply chain, potentially undermining efforts to achieve international certifications like the LBMA Good Delivery Bar Certification.
“There is a compelling reason, more than ever, to ensure that we curtail the menace of galamsey to ensure responsible mining and safeguard our environment and water-bodies,” Dr. Bawumia asserted.
He outlined a five-pronged approach that includes geological surveys, simplified licencing regimes for small-scale miners, land reclamation initiatives, scaling up environmentally sound mining technologies and stringently enforcing mining laws and regulations.
The 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.
The Minister for Finance, Dr. Mohammed Amin Adam, highlighted the minerals and mining quarrying sector’s importance as the most significant contributor to direct domestic taxes mobilised by the Ghana Revenue Authority (GRA) in 2023, with fiscal payments amounting to GH₵11.6billion – representing 22.7 percent of aggregate direct domestic tax receipts.
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.
On the back of these developments, the minister emphasised: “Beyond supporting companies such as Royal Ghana Gold in pursuing value addition, government will also drive the exploration of potential gold reserves and provide the right mix of policies and incentives to stimulate activity across the gold value chain”.
Michael Akafi, President-Ghana Chamber of Mines, reinforced the importance of the refinery’s inauguration, stating that while it is a crucial step in unlocking the benefits of mineral extraction and processing, it must be complemented with other strategic initiatives to fully realise its potential.
