Goldbod signs local refining deal with Royal Ghana Gold Refinery

Ghana has taken another major step toward expanding local mineral value addition after the Ghana Gold Board signed a gold refining agreement with Royal Ghana Gold Refinery aimed at increasing domestic gold processing and reducing the export of raw minerals.

The agreement was signed at a ceremony attended by officials from the Bank of Ghana and other stakeholders within the mining and financial sectors.

Chief Executive Officer of the Ghana Gold Board, Sammy Gyamfi, described the agreement as part of President John Dramani Mahama’s broader vision to end the export of raw minerals from Ghana by 2030.

Speaking at the ceremony, Mr. Gyamfi said Ghana’s long-standing dependence on exporting unrefined gold represented a major missed economic opportunity for one of Africa’s leading gold-producing nations.

“When we took office on January 7, 2025, Ghana did not have any functioning gold refinery refining gold locally for export,” he stated.

“All the gold we produced was exported in raw form, and that narrative must change,” he added.

Under the new agreement, Royal Ghana Gold Refinery will be authorised to refine up to one metric ton of gold per week, subject to its operational capacity.

The Ghana Gold Board said the initiative forms part of efforts to ensure that gold produced locally, especially from the small-scale mining sector, is refined domestically before export.

Mr. Gyamfi disclosed that the Gold Board currently purchases an average of 2.5 metric tons of gold weekly with support from the central bank.

He also revealed ongoing discussions with large-scale mining firms aimed at enabling the Gold Board to acquire up to 30 percent of their gold output for local refining.

According to him, refining gold within Ghana would help the country retain significant refining fees that are currently paid to foreign refineries in countries such as United Arab Emirates, India, and Switzerland.

“What this means is that the refining fees that used to leave Ghana will now remain in the Ghanaian economy,” he explained.

“Jobs will be created here, technical expertise will grow here, and value retention will improve,” he added.

Mr. Gyamfi further noted that the initiative supports Ghana’s ambition to secure accreditation from the London Bullion Market Association for local gold refineries.

Analysts say achieving LBMA accreditation would significantly enhance Ghana’s competitiveness within the global bullion market while improving international confidence in locally refined gold products.

Governor of the Bank of Ghana, Dr. Johnson Asiama, described local processing of natural resources as a long-overdue national development strategy.

“It has taken too long for us to get to this stage,” he said.

“Not just gold, but cocoa and oil as well. If we process these resources locally, we will experience significant economic transformation,” he added.

Dr. Asiama indicated that the central bank would continue supporting initiatives aimed at strengthening local refining capacity and improving oversight within the gold value chain.

He also disclosed that the Bank of Ghana still maintains a minority stake in the refinery to support monitoring and operational supervision.

Managing Director of Royal Ghana Gold Refinery, Eric Frimpong, assured government officials that the refinery is fully prepared to begin operations immediately.

According to him, the company aims to refine Ghanaian gold to internationally accepted standards while pursuing LBMA accreditation in the long term.

“Ghana has exported raw gold for centuries,” he stated.

“It is about time we take our destiny into our own hands and add value to what we produce here,” he added.

Mr. Frimpong also pledged support for government’s proposed 24-hour economy policy, indicating that the refinery would operate continuously to maximise production and employment opportunities for Ghanaian youth.

Officials at the event indicated that the refinery could begin processing gold as early as next week, with the first bullion bars expected shortly after initial deliveries.

The agreement represents the latest effort by Ghanaian authorities to reposition the country from a raw mineral exporter to a value-added mineral processing hub in West Africa.

Officials noted that this is the second refinery agreement signed by the Ghana Gold Board, following an earlier arrangement with Gold Coast Refinery.

Industry observers say the strategy could significantly improve revenue retention, create skilled jobs, expand industrial capacity, and strengthen Ghana’s position in the global gold market.