Ghana opens first gold refinery to boost value, fight smuggling

(MENAFN) Ghana, the largest gold producer in Africa, has inaugurated its first gold refinery, a strategic move designed to increase the value of its natural resources and curb longstanding issues related to gold smuggling. The Royal Ghana Gold Refinery is anticipated to process up to 400 kilograms of gold daily, utilizing output from smaller mining operations. These smaller mines contribute approximately one-third of Ghana's total gold production, which amounts to about 4 million ounces annually.

The new refinery is expected to address significant challenges associated with gold smuggling by providing a formal market for small-scale miners and artisans. Ghana’s central bank governor, Ernest Addison, highlighted the refinery’s potential to reduce the profitability of smuggling operations and enhance transparency within the gold trade. As part of its efforts to boost foreign exchange reserves, the central bank has already purchased USD5 billion worth of gold from small-scale miners since launching the program in 2021.

Ownership of the refinery will be divided between India's Rosie Royal Minerals, which will hold an 80% stake, and the Central Bank of Ghana, which will retain the remaining share. This development is part of a broader trend among African nations, such as Uganda and Madagascar, looking to emulate Ghana's approach to strengthening their currencies and boosting their economies through increased value addition to their natural resources. 

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