Ghana, Africa’s top gold producer, opens its first refinery after centuries of mining

Ghana, Africa’s biggest gold producer, has launched its first-ever refinery after centuries of mining of the valuable commodity, in a bid to reap more value from its abundant natural resources.

The Royal Ghana Gold Refinery is set to refine 400 kilograms of gold a day, sourcing the raw material primarily from artisanal and small-scale mines, which officially account for a third of the West African country’s output of about 4 million ounces a year.

Rosy Royal Minerals Ltd. of India owns 80% of the refinery and the Central Bank of Ghana (BoG) the remaining 20%, according to government officials. “This refinery will play an important role in reducing gold smuggling which has been a major challenge for the country over the years by providing a ready market for artisanal and small-scale miners,” said BoG Governor Ernest Addison.

A large but unknown amount of gold is illegally produced by miners locally known as ‘galamsey,’ who smuggle their output out of Ghana. “This gold refinery can mitigate the incentive for smuggling and help promote transparency and accountability in gold trading,” Addison added. The BoG has bought $5 billion worth of gold from artisanal and small miners as part of a program launched in 2021 to boost Ghana’s foreign-exchange reserves, a move that has been followed by other African nations, such as Uganda and Madagascar. The launch of Ghana’s first refinery also fits within a wider push across the continent to add value to natural resources before exporting them to secure greater economic benefits.