Dr Bawumia inaugurates State-of-the-art gold refinery

Vice-President and the flagbearer of the New Patriotic Party (NPP), Dr. Mahamudu Bawumia, has inaugurated a state-of-the-art gold refinery aimed at enhancing value addition in Ghana’s mining sector.

The new facility, officially opened yesterday, is expected to play a pivotal role in increasing the value of Ghana’s gold exports by refining the precious metal locally rather than exporting it in its raw form.

Boosting Ghana’s economy through value addition

During the commissioning ceremony, Dr. Bawumia highlighted the strategic importance of the refinery in boosting Ghana’s economy.

He explained that the facility will enable the country to capture more value from its gold resources, which have traditionally been exported in unprocessed forms.

This move aligns with the government’s broader agenda to maximize the benefits of Ghana’s natural resources and reduce reliance on raw commodity exports.

Advanced technology for global market readiness

The gold refinery, equipped with cutting-edge technology, will facilitate the processing of gold into high-purity bars, ready for international markets.

Dr. Bawumia emphasized that this will not only enhance Ghana’s position in the global gold market but also create numerous job opportunities within the country.

He expressed optimism that the refinery will attract further investment into the local mining sector.

Collaboration and support from stakeholders

In his address, Dr. Bawumia also acknowledged the support of various stakeholders who contributed to the completion of the project.

He praised the collaborative efforts between the government, private sector partners, and industry experts in making the refinery a reality.

The project is expected to contribute significantly to Ghana’s economic growth and strengthen the mining sector’s infrastructure.

Dr. Bawumia’s vision for a sustainable mining sector

“It gives me immense joy to address you today on the commissioning of the Royal Ghana Gold Refinery. This historic achievement in the natural resources sector, specifically in gold, marks a significant milestone in Ghana’s journey towards economic transformation and industrialization. Today, we celebrate not just a new facility but a testimony to our government’s commitment to adding value to our natural resources, creating jobs, and ensuring sustainable economic growth,” Dr. Bawumia stated.

Reducing withholding tax to spur local gold production

Dr. Bawumia revealed plans to further reduce the withholding tax from 1.5% to 1% in his future administration, aiming to realize higher production volumes for local refining.

He noted that he had previously advocated for the reduction of the gold export levy (withholding tax) from 3% to 1.5%, which led to a recovery in gold export volumes after a sharp decline in 2021.

Small-scale mining’s contribution to Ghana’s gold production

He highlighted that in the first half of 2024, the small-scale mining sector alone produced a total export volume of 821.97 troy ounces, more than double the volumes of previous years.

In the first half of 2024, small-scale mining significantly bolstered Ghana’s gold production, generating $1.7 billion, which accounts for approximately 36% of the country’s total gold export revenue of $5 billion.

Dr. Bawumia emphasized that his future government would elevate the sector’s standards and productivity by providing technical assistance, financial support, and better access to markets.

Support for large-scale miners and infrastructure development

For large-scale miners, Dr. Bawumia outlined plans to boost investment in infrastructure and technological advancements.

He intends to foster a more conducive environment for large-scale mining operations by facilitating access to modern equipment, optimizing resource management, and streamlining regulatory processes.

This support is expected to enhance efficiency and expand the sector’s contribution to the national economy.

Integrating mining with broader economic goals

Dr. Bawumia also underscored the importance of integrating mining activities with broader economic goals, such as creating jobs and supporting local communities.

He stressed that the benefits from mining should extend beyond the industry itself, contributing to national development and improving the livelihoods of Ghanaians.

Securing international certifications for maximum value

To maximize the value of products from the refinery, Dr. Bawumia highlighted the necessity of obtaining international certifications such as the London Bullion Market Association (LBMA) Good Delivery Bar Certification.

He introduced the “Golden Age of Mineral Resources” policy, focusing on maximizing the value of Ghana’s mineral assets, including gold, bauxite, and manganese, through strategic investments and improved resource management.

Ogyeahoho Yaw Gyebi II applauds govt’s efforts

Ogyeahoho Yaw Gyebi II, President of the National House of Chiefs, praised the government for the inauguration of the Royal Ghana Gold Refinery. He described the commissioning as a pivotal moment in Ghana’s journey toward economic independence and industrial progress. Ogyeahoho Yaw Gyebi II underscored the importance of this venture as a testament to Ghana’s ability to refine and effectively manage its own resources.