Ghana Launches Its First Gold Refinery 

Ghana, Africa’s largest gold producer, has opened its first gold refinery to extract more value from its enormous natural resources.

The Royal Ghana Gold Refinery will process 400 kilogrammes of gold each day, largely from artisanal and small-scale miners, which account for around one-third of Ghana’s yearly output of around 4 million ounces, according to Bloomberg.

According to 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 owns 80% of the refinery, with the Bank of Ghana holding the remaining 20%. The refinery is part of a larger initiative to formalise Ghana’s artisanal and small-scale gold mining sector.

The central bank has been buying gold from local miners to boost its foreign exchange reserves and address a falling currency, a policy that other African governments, including Zimbabwe, Uganda, and Madagascar, have implemented or are exploring.

The factory is part of a larger continental movement to add value to natural resources before exporting them, with the goal of ensuring higher 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.”