To enable the nation to add value and obtain better dividends from gold output, the government has stated that plans to establish a gold refinery are well advanced.
The decision will assist strengthen local industry and provide jobs for the nation’s teeming youth, according to Minister of Finance Ken Ofori-Atta, who was speaking to Parliament on Thursday, November 24, 2022, during the introduction of the 2023 Budget Statement and Economic Policy.
He claimed that the government would “extend the Bank of Ghana’s gold purchase program to assist forex reserve accumulation, promote a London Bullion Market Association (LBMA) certified gold refinery in Ghana, and promote local currency stability” as part of its economic vision for 2023.
The minister said the continuous drop in value of the country’s major export earning commodities was an indication that the economy cannot rely on exporting raw materials of major produce hence, government needs to put in place the right measures in place to address this challenge.
Ghana, the second highest gold producing country in Africa after South Africa is home to major multinational mining companies who mine and export the precious metal to be refined in other countries, a development that leaves the country shortchanged in terms of revenues that the state makes from its mining sector.
With the substantial increment in gold prices on the world market in recent times, the establishment of a refinery for the production of gold in the country will set the country on a better standing as it is better for the country to add value to the precious metal to get real monetary value than to export it in its raw form.
This the Finance Minister said will help the country derive deserving amount from adding value to its gold than what currently accrues to the state from the sale of its raw gold.
He was optimistic that the gold refinery will diversify the country’s mineral economy from a predominantly export-driven to a value addition economy stressing that it will fetch the country enough foreign exchange to cushion the local currency.