Government’s Gold Refinery Initiative Aims to Maximize National Resource Benefits – Jinapor

The creation of a local gold refinery is a strategic effort by the government to ensure that Ghana fully benefits from its abundant natural resources, according to the Minister for Lands and Natural Resources, Samuel A. Jinapor. He emphasized that this initiative marks a significant shift from traditional methods of resource exploitation to a more modernized, value-addition approach, which is essential for the country’s economic growth.

Minister Jinapor highlighted that Vice President Dr. Mahamudu Bawumia has played a crucial role in driving policies aimed at maximizing the benefits from Ghana’s mineral resources. These include the digitalization of the National Assay Laboratory, the Domestic Gold Purchase Programme, and the Gold for Oil Programme, which have significantly boosted the country’s gold reserves and contributed to stabilizing its crude consumption.

The establishment of the Royal Gold Refinery is a major milestone in the government’s efforts to position Ghana as a hub for mineral refining in the region. The refinery will play a vital role in adding value to Ghana’s gold resources, increasing foreign exchange earnings, and reducing the country’s reliance on raw mineral exports.

In his speech, Vice President Dr. Bawumia proposed a new framework to anchor the value of the Cedi to gold, which he believes will enhance foreign exchange management and ensure long-term stability for the currency. This framework is designed to channel significant gold demand through the Bank of Ghana’s gold purchase program, thereby stabilizing the exchange rate and providing additional reserves for the country.

The Governor of the Bank of Ghana, Dr. Ernest Addison, also underscored the importance of the Royal Gold Refinery in supporting the Domestic Gold Purchase Programme. He noted that since its inception, the Bank has accumulated substantial foreign exchange buffers, exceeding expectations under the IMF program. The refinery is expected to reduce gold smuggling, promote transparency in gold trading, and enable the country to secure London Bullion Market Association (LBMA) certification, allowing Ghana to trade refined gold on the international market.

The establishment of this local gold refinery is a significant step toward realizing the full potential of Ghana’s gold resources. It presents immense opportunities for job creation, economic development, and financial stability, while also reducing the country’s dependence on foreign refineries and external borrowing.