Maina wa Njuguna
Ghana is Africa’s leading exporter of gold in Africa. According to Statista, the country exported 5.3 billion dollars worth of gold in 2021.
The Royal Ghana Gold Refinery, with the capacity to process 400 kilograms (kg) of gold per day, was inaugurated on Thursday by Ghana’s Vice President Dr. Mahamudu Bawumia, who hailed it as a “historic achievement… towards economic transformation and industrialisation.”
Gold exports account for 96% of the country’s mineral export and 50% of the total exports. All of it has had to be exported in its raw state for years, leaving the cash strapped nation loosing significant revenues.
The vice president said “With the ability to locally refine our gold, we will be able to sell the refined gold at its appropriate price, enabling us to retain its economic value within our borders, while creating numerous job opportunities for the youth. In addition, the Government’s intention to refine all gold produced in Ghana will further enhance our economic independence and resilience.”
It was a joint venture between the Bank of Ghana and Precious Minerals Marketing Company (PMMC). Dr. Bawumia stated at the commissioning of the new gold refinery, the Bank of Ghana (BoG) domestic gold purchase programme (DGPP), and the refinery, Ghana is positioned as the gold hub of Africa and this marks a new era for the country in his vision of building a resilient economy anchored on the country’s mineral resources in a golden age of natural resource governance.
Dr. Bawumia is campaigning to be the next president since his boss, the current president, Nana Akfo Addo is term limited.
The VP said ” A minimum of US$5 million will be invested in this geological investigation of mineralized zones from 2025. With evidence of proven reserves, we will ensure that earmarked concessions in these resource-mapped areas with proven reserves will be 100% Ghanaian-owned for small-scale mining.”
VP, Dr. Bawumia
Ghana’s currency, the Cedi has experienced lots of volatility mainly because of how the Ghanian economy is structured. The country’s main resources are exported in raw form, and it is import-dependent. Refining locally will bring more leverage in its main exports and that will quell external shocks and enhance stability.
The vice president said “We will use a comprehensive and collaborative approach to ensure strict adherence to our mining laws and regulations to prevent illegal and improper mining practices such as mining near or in river bodies, the use of prohibited chemicals or equipment for mining, and environmental degradation.”
“Among the many approaches, will be the establishment of a Minerals Development Bank to provide financial resources to indigenous Ghanaians in the sector. This will deepen the Ghanaian ownership dream and avoid situations whereby Ghanaians acquire mining licenses and sell to foreigners because they do not have the required capital. We will also set up common user processing factories for the small-scale mining sector to enable them to scale up how much they realize from processing.” – VP Dr. Bawumia
According to the VP, the greatest challenges lie with illegal mining. To operate with international certification, sourcing standards will have ro be adhered to hence Royal Ghana Gold Refinery must ensure that its entire feedstock is responsibly sourced.
“The next NPP government under my presidency shall adopt practical policies to address the root causes of galamsey (illegal mining) and support the small-scale mining sector. I am of the firm conviction that while galamsey is a menace, small-scale mining is not, and therefore the latter must be prioritised.”
