Gov’t seeks to buy 30% of gold from miners to boost reserves, central bank

The Government of Ghana has announced plans to increase the amount of gold large-scale mining companies must sell to the central bank from 20% to 30% of their annual production, as authorities intensify efforts to strengthen the country’s gold reserves and stabilise the economy.

The proposed policy forms part of a revamped reserve-building strategy being spearheaded by the Bank of Ghana, which aims to significantly expand the country’s bullion holdings over the next few years.

According to Paul Bleboo, head of the Bank of Ghana’s Gold Management Programme, the central bank is currently negotiating with industrial mining firms to secure a larger share of their annual gold production in dore form — partially refined gold bars produced directly from mines before full refining.

“This time, we intend to negotiate for 30% of annual production from industrial miners, with the entire 30% to be delivered in dore form,” Bleboo said during remarks on Thursday.

The move comes amid a growing global trend in which central banks are increasing their gold reserves as soaring bullion prices enhance gold’s attractiveness as a safe-haven reserve asset.

Ghana, Africa’s leading gold producer, first launched its domestic gold purchase programme in 2022. Under an earlier agreement reached with the Ghana Chamber of Mines, mining firms were expected to supply 20% of their annual gold output to the central bank.

Data from the Bank of Ghana shows the country’s gold reserves rose to 19.2 metric tons in February, a development authorities say has helped stabilise the Ghanaian cedi, improve foreign exchange reserves, and support economic recovery following one of the country’s worst financial crises in decades.

Government officials are now targeting a much larger reserve stockpile of up to 157 metric tons by 2028, equivalent to approximately 15 months of import cover.

Despite the earlier agreement, the central bank disclosed that compliance levels from industrial miners fell below expectations last year. According to Bleboo, industrial mining firms delivered only about 10 metric tons of gold out of approximately 100 metric tons declared in annual production — representing just 10% instead of the agreed 20%.

Authorities say the revised framework is also intended to improve transparency and traceability within the country’s gold export sector. Under the new structure, state gold trading agency GoldBod would serve as the primary “gatekeeper” through which all gold exports are expected to pass.

Where mining firms export directly, the central bank wants 30% of exported gold retained in dore form to ensure accurate tracking of shipment volumes and reserve allocations.

However, the proposed increase has triggered fresh negotiations and concerns within the mining industry, particularly over pricing structures, discounts, and implementation timelines.

The Bank of Ghana argues that off-take discounts are necessary to account for refining, freight, transportation, and purity-related costs associated with converting dore gold into reserve-quality bullion.

Bleboo stated that a proposed discount of less than 1% on industrial gold purchases should be viewed as part of the cost of building strategic national reserves.

But mining companies are pushing back against aspects of the proposal.

Chief Executive Officer of the Ghana Chamber of Mines, Kenneth Ashigbey, confirmed that negotiations between the government and mining firms are still ongoing and that no final agreement has been reached.

He explained that discussions surrounding pricing formulas and discount structures remain complicated and commercially sensitive.

A mining industry executive familiar with the talks also revealed that several firms oppose volume-based discounts and are concerned about proposals that would assign zero value to by-products such as silver extracted during gold production.

Industry players additionally argue that the proposed 1% discount could effectively function as an additional tax burden on mining companies.

Mining firms have also raised concerns over the speed of implementation, explaining that many operational and export plans were originally designed around the previous 20% requirement.

As a result, some companies are reportedly proposing a phased or gradual increase rather than an immediate jump to 30%.

The negotiations are expected to continue in the coming weeks as government balances its reserve accumulation ambitions with concerns from one of Ghana’s most important export industries.