The Vice President of the Republic, Dr. Alhaji Mahamudu Bawumia, on Thursday, August 8, 2024, commissioned the Royal Ghana Gold Refinery, a state-of-the-art facility capable of refining four hundred kilograms (400kg) of gold daily.
The Accra-based refinery, which can produce refined gold at twenty-four (24) carats with a quality rate of ninety-nine point nine-nine percent, marks a significant milestone in the government’s journey to move Ghana from mineral production to value addition.
Delivering the address at the commissioning, the Vice President, Alhaji Dr. Mahamudu Bawumia stated that the fruition of the refinery represents a strategic investment decision by the government and further drives the mission to add value to Ghana’s mineral resources. He disclosed that the refinery will create more than 600 direct and indirect jobs for Ghanaians.
Dr. Mahamudu Bawumia highlighted features of the refinery that makes it an outstanding achievement for the government in job creation and revenue generation avenues, and also moves Ghana a step closer to the dream of making the country a hub for mineral refinery.
“The establishment of this refinery is a strategic investment which contributes immensely to the Government’s efforts in ensuring value addition to our mineral resources. Currently, our country’s gold is exported in raw form and is refined outside Ghana, resulting in lost revenue and missed opportunities for job creation. Between 2018 and 2023, Ghana’s average annual gold production was 3.92 million ounces (122.5 tonnes). All this gold was exported unrefined, resulting in lost revenue and missed job creation opportunities.
“The refinery will offer more premium to gold exported from Ghana. Initially, it is expected to create 80 to 120 direct jobs and another 500 indirect employment opportunities, boosting domestic tax revenue in the form of corporate taxes and enabling us to refine gold to 24 carats, 99.99% purity – the same quality as a good delivery bar (LBMA standard).8
“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,” he said.
Dr. Bawumia touched on the issue of illegal mining and smuggling of gold, appealing to all stakeholders in the sector to work with the government to ensure that the country derives the full benefit from its mineral resources.
On his part, the Minister for Lands and Natural Resources, Hon. Samuel A. Jinapor, MP disclosed that government, right from the onset, recognized that for Ghana to enjoy maximum benefit from its natural resources, there must be a paradigm shift from the archetypal method of exploiting resources to a modernized and value-addition-based harnessing of the resources.
Hon. Jinapor disclosed that Vice President Dr. Mahamudu Bawumia has been at the forefront of the initiative, with his commitment, expertise, and knowledge proving crucial in the implementation of various policies aimed at enhancing the exploitation of resources in the country.
“The Vice President has been at the forefront of policies aimed at ensuring optimal benefits from our mineral resources and improving the livelihoods of our people, including the digitalization of the National Assay Laboratory, the Domestic Gold Purchase Programme, which has led to a tremendous increment in our gold reserves, and the Gold for Oil Programme, which has contributed over thirty percent (30%) of our total crude consumption.
“The reconstruction of the Appiatse community, which was razed down some two years ago, and the ongoing efforts at digitalizing the records of the Lands Commission to make it fit for purpose are also some of the remarkable interventions of the Vice President in the Lands and Natural Resources sector,” he said.
The Minister stated that the establishment of the Royal Gold Refinery is a feather in the cap of the government pursuant to its bid to ensure that Ghana rakes in the maximum benefits from its resources and also becomes the hub of mineral refinery in the sub-region.
“And this afternoon, Ladies and Gentlemen, he (Dr. Bawumia) unveils a great milestone that embodies our commitment to value addition, thereby realizing the vision of the Akufo-Addo/Bawumia Government to make Ghana the mining hub of Africa, where all mining and mining-related activities, from exploration to downstream production, and from research to innovation, will be centered.”
He disclosed that the efforts to build refineries continue unabated with the construction of a $450 million manganese refinery at Nsuta in the Western Region, which will be the bedrock of the growth of the steel, aluminum, and copper industries in Ghana.
He further stated that the arrival of the refinery presents a huge boost in Ghana’s quest to secure a London Bullion Market Association (LBMA) Certification to ensure that the country can trade its refined gold on the international market.
The Minister of Finance, Dr. Mohammad Amin Adams, asserted that the commissioning of the gold refinery marks a crucial role in Ghana’s journey towards economic independence, ensuring the retention of value addition in Ghana.
He said the Government, through the Ministry of Finance, will continue to support Ghanaian participation across the mineral value chain.
Director of the Royal Ghana Gold Refinery Limited, Mr. Eric Santeng, in his welcome address, extended his gratitude to the government for their commitment to making the setup of the world-class refinery a reality.
“Ghana is renowned as one of the world’s top gold producers, and it is befitting that we have the opportunity to refine our precious resources in the country. By refining gold locally, we add substantial value to our exports, increasing our foreign exchange earnings and positioning Ghana as a leading player in the global gold market,” he said.
Established in 2018, the Royal Ghana Gold Refinery is a private-public partnership that embodies the spirit and collaboration of innovation that drives the country forward with dedication and hard work for the prosperous future of Ghana.
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