Unlocking Ghana’s mineral wealth: Refining for a brighter future

By Dr Kofi AMPONSAH-BEDIAKO

Ghana and many African countries are endowed with abundant natural resources which are often exported in their raw form to other countries, bringing in less revenue than would have been realised if they had been refined  before export.

These precious minerals are used by the countries that purchase them to process them further  into other commodities which are sent back to other parts of the world, including Africa, inform of higher prices. For this reason, the revenue obtained from the raw minerals initially seen as revenue is usually insufficient for the purchase of other products which are manufactured by other countries.

In the case of Ghana, some of the natural minerals often exported in its raw form are bauxite, manganese, diamond and gold, among others. In recent times,  crude oil and lithium have also been discovered in the country. All these minerals can bring in substantial revenue into the country, but it will be better if they are refined before export to other countries

If these minerals are refined before export, then will bring in more revenue than anticipated so that the national needs of the country can be met. At the time of independence in 1957, the population of Ghana was far less than  six million, meaning that demands at the time were far less than today.

As we speak today, the population of the country is estimated at thirty – three million, meaning that the needs of the people have increased tremendously and thereby calling for more revenue to cover the expenditures incurred by the country.  the taste of Ghanaians has also become more sophisticated in all sectors of the economy.

Today, for example, children as part of their education, need to make use of laptops and computers, a situation that was non –  existents some years back. It is therefore necessary to maximise the use of natural resources in the country by refining them to bring in more revenue so as to be able to cover national expenditure

It is for this reason that the decision by the Akufo Addo – Bawumia Administration to refine every mineral in the country before export comes as a laudable idea within the context of modernising and increasing revenue for socioeconomic development

The inauguration of Royal Gold Ghana Limited to refine gold before export is a step  in the right direction, the refinery will bring in substantial benefits to the gold industry in the country. To begin with, the country will be able to rake in greater amount of revenue than we are getting now. Apart from this, more people, operating in the gold business, weather large scale or small scale, will bring in their gold deposits to process them in the refinery before they are exported .

Again, if this is done, the exact amount of gold exported out of the country will be known and recorded.

Last but not the least, the presence of a local gold refinery will enable the production of gold coins and other artifacts which can act as a safe-haven asset, and will broaden investment options in the financial markets and contribute to financial stability.

The process of gold before export will also help to strengthen the financial sector of the country. This is because refined gold can be kept as reserves to support Ghanaian currency, that is, the cedi.

the Bank of Ghana has bought 23 tons of gold valued at about US$1.8 billion. The programme, along with other donor disbursements, puts the Bank in a favourable position to support the country’s external payments obligations as and when they fall due.

Apart from the gold refinery, the Government of Ghana has also planned to established another refinery at Insuta  in the Western Region next year to process manganese before export. In the same way, efforts are also underway to setup other plants to process other minerals such as lithium. All these are meant to expand the revenue base of the country so as to be able to promote the socioeconomic development agenda of the country. This is the way to go  so it is good that the government has seen the light in this way to be able to raise more revenue as a way of enhancing the welfare of people in the country.