The Vice President, Dr. Mahamudu Bawumia, has emphasized that the establishment of a refinery in Ghana represents a strategic investment that significantly supports the government’s initiatives to enhance the value of the nation’s mineral resources.
At present, Ghana exports its gold in dore form for refining abroad, which leads to a loss of potential revenue and job creation opportunities. From 2018 to 2023, Ghana’s average annual gold production reached 3.92 million ounces (122.5 tonnes).
The Vice President remarked that historically, Ghana has exported its gold in its unrefined state, thereby forgoing substantial revenue and employment opportunities.
He highlighted that under the leadership of President Nana Addo Dankwa Akufo-Addo, the government has been committed to integrating value addition into its export strategy since 2017. The launch of the refinery is particularly significant as it fulfills a crucial aspect of this vision.
Originally, this vision was to be actualized through a joint venture between the Precious Minerals Marketing Company (PMMC) and Rosy Royal Minerals Limited. PMMC granted part of its land for the construction of the refinery and despite delays due to COVID-19, the beautiful edifice you see today, which started in 2018, was completed in 2022.
He stated that the Bank of Ghana has assumed control of PMMC’s stake in the refinery, while PMMC remains equipped to fulfill its responsibilities as the National Assayer, ensuring quality and revenue assurance for the products of the refinery.
He praised the Board, Management, and Staff of both the Bank of Ghana and PMMC for their unwavering support and collaboration in bringing this significant national project to fruition.
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.
During the inauguration of the new gold refinery, Dr. Bawumia emphasized that Ghana is set to become the gold hub of Africa, thanks to the Bank of Ghana’s domestic gold purchase program (DGPP), which commenced in 2021, alongside the establishment of the refinery.
He articulated that this development signifies a transformative period for Ghana, aligning with his vision of fostering a resilient economy that leverages the nation’s mineral resources, thereby entering a golden age of natural resource governance.
Dr. Bawumia expressed confidence that with appropriate policies and a strategic approach to the utilization of Ghana’s natural resources, the nation can effectively address the recurring depreciation of its currency.
Historically, the nature and structure of our largely primary commodity producing and import-dependent economy is such that a largely flexible exchange rate regime in the context of external shocks, fiscal indiscipline and speculative activities will lead to a continuously depreciating exchange rate over time even if we have periods of stability.
