Ghana’s gold reserves hit $5 billion as new refinery launches

The Bank of Ghana (BoG) has announced a significant milestone in the country’s gold reserve accumulation, revealing that over US$5 billion worth of gold has been amassed under the Government’s Domestic Gold Purchase Programme since its inception in 2021. The total gold reserves reached 65.4 tonnes by December 2023, with an additional 23 tonnes purchased between January and June 2024, valued at $1.6 billion, bringing the reserves to 73 tonnes.

The BoG utilized $1.6 billion from these reserves as equity in the Government’s ‘Gold for Oil’ initiative, aimed at stabilizing the Cedi and curbing the rising demand for foreign currencies. This achievement was highlighted during the official commissioning of the Royal Gold Ghana Limited (RGGL), a joint venture gold refinery, in Accra.

The RGGL, a collaboration between the Precious Minerals Marketing Company (PMMC) and Rosy Royal Limited, an Indian gold refinery firm, marks a significant step towards adding value to Ghana’s natural resources. The $450 million refinery is equipped with state-of-the-art technology that meets international standards, significantly boosting the country’s capacity to process gold locally.

Vice President Dr. Mahamudu Bawumia, who officiated the commissioning, emphasized the importance of this development in Ghana’s journey towards economic transformation and industrialization. He expressed the government’s commitment to anchoring the local currency with gold to strengthen it against foreign currencies.

The Vice President also underscored the strategic importance of the partnership between the Government, through the BoG, and Rosy Royal Limited, noting that the refinery would play a crucial role in creating jobs and ensuring sustainable economic growth. The RGGL is expected to receive London Bullion Market Association (LBMA) accreditation after three years of operation, provided it sources its gold from responsible suppliers.

Dr. Bawumia reiterated the government’s determination to make value addition a critical component of the country’s export strategy, pointing out that Ghana has historically exported gold in its raw form, missing out on significant revenue and job creation opportunities. The new refinery is expected to reverse this trend, enabling Ghana to refine gold to 24 carats, 99.99% purity, which meets the LBMA standard.

The establishment of the refinery is anticipated to create between 80 to 120 direct jobs and an additional 500 indirect employment opportunities, boosting domestic tax revenue through corporate taxes. The Vice President highlighted that with the BoG’s domestic gold purchase programme and the new refinery, Ghana is positioning itself as the gold hub of Africa, ushering in a new era of economic resilience and independence.

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