Ghana's ambition to refine gold locally will impose additional costs on mining companies. Dr. Ken Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines, issued this warning. He stated that the country must accept some financial pain to gain more value from its mineral resources.
Dr. Ashigbey explained that local content initiatives always come with costs. He emphasized that this financial burden cannot fall solely on mining companies. He believes all stakeholders, including the government, must contribute to make the initiative successful. The government needs to actively participate in this collective effort.
This push for local refining aligns with Ghana's broader economic strategy to maximize benefits from its natural resources. The country aims to move beyond exporting raw materials to adding value domestically. This strategy seeks to boost local industries, create jobs, and increase national revenue. Ghana's mining sector contributes significantly to its Gross Domestic Product (GDP), making such policies impactful.
Dr. Ashigbey suggested the government review existing taxes and levies that increase refining costs. He noted that discussions on this matter are already underway. He also called on private refinery owners to invest in advanced technology. This investment would help reduce their operating expenses and improve efficiency.
Energy costs represent another major concern for local refining operations. Dr. Ashigbey highlighted the current high cost of power in Ghana. He proposed that the government consider policy decisions to provide cheaper energy. Specifically, he suggested offering more hydroelectric power to refineries due to their strategic importance. Hydroelectric power is generally less expensive than other energy sources.
The government's 24-hour economy plan includes investments in large solar plants. These plants could reduce energy costs to around 3 to 4 cents per kilowatt-hour. This initiative could offer a viable solution for lowering operational expenses for refineries. Such measures are crucial for making local refining economically competitive.
GoldBod, the state-owned gold aggregator, has issued a directive. From September 1, 2026, Self-Financing Aggregators must refine gold doré in Ghana before export. This means unrefined gold doré will no longer receive approval for export. The aggregator or its approved buyer must cover the refining costs. This directive is a key step towards greater local value addition.
GoldBod has also set an ambitious target for Ghana. By 2030, at least one local refinery should achieve London Bullion Market Association (LBMA) accreditation. LBMA accreditation is a globally recognized standard for gold and silver bars. Achieving this status would significantly enhance Ghana's reputation in the international gold market. It would also ensure the quality and integrity of locally refined gold.
Dr. Ashigbey affirmed that beneficiation, which means adding value to raw materials, is beneficial for Ghana. However, he stressed the importance of a collaborative approach. Government and industry must work together to manage the transition and limit financial impacts. This partnership is essential for reducing the overall cost of doing business in the refining sector.
He cited the Ghana Accelerated National Reserve Accumulation Programme (GANRAP) as an example of existing costs. Large-scale miners are already absorbing additional expenses under this program. For instance, they contribute 0.55% when the weighted average is 0.098%. This represents an extra subsidy to the government. Dr. Ashigbey emphasized that this policy requires a collective national effort. All stakeholders, including investors and the government, must collaborate to reduce costs and achieve the national objective.