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Ghana has started operating the Ghana Royal Gold Refinery, the first of its kind in West Africa, in an effort to add value to the country’s gold production and increase its presence in international markets.
Ghana’s Royal Gold Refinery aims to obtain the coveted international accreditation and position the country as Africa’s leading gold hub, marking a major leap forward in the country’s quest to transform its economy and add value to its mineral sector.
The state-of-the-art refinery aims to receive accreditation from the London Bullion Market Association (LBMA), marking a key moment for Ghana, currently the continent’s leading gold producer. LBMA accreditation will make the Royal Gold Refinery the second refinery in Africa to receive this accreditation after South Africa, and the Bank of Ghana, which owns a 20% stake in the refinery, is interested in accelerating the process.
“What we are celebrating is not just the inauguration of a new facility, but a testament to government’s commitment to adding value to our natural resources, creating jobs and ensuring sustainable economic growth,” said Vice President Mahamudu Bawumia.
The Ghana Royal Gold Refinery is a joint project between India’s Rosy Royal Minerals and the Central Bank of Ghana, with a designed daily refining capacity of up to 400 kg of gold. The raw materials for the refinery mainly come from artisanal and small-scale mines, which account for about one-third of Ghana’s annual production.
The joint venture is a strategic investment in the country’s future, with the potential to transform Ghana from an exporter of raw gold to a hub for refined gold in the international market.
Data from the Central Bank of Ghana shows that gold exports have been a major contributor to the country’s economy, accounting for 54% of total exports in the first half of 2024, with revenue totaling $5 billion out of Ghana’s $9.2 billion in exports. Rising gold prices, especially in the second quarter of 2024, have contributed significantly to this boom.
The average price of gold hit an all-time high of $2,338 per ounce, up 18% from the previous year, and reached an all-time high of $2,482 per ounce in July 2024.
Small-scale mining played a vital role in the export growth, contributing about $1.7 billion, or around 36% of gold exports by mid-year.
After centuries of mining the precious metal, Ghana has taken a decisive step by opening a gold refinery as the country joins a wider movement across Africa to add value to its mineral wealth, particularly those that are crucial to the energy transition.
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