Ghana has officially begun refining gold domestically through a new partnership, a strategic move aimed at capturing greater value from its mineral resources and boosting foreign exchange earnings.
The initiative is a collaboration between the Ghana-based Gold Coast Refinery and South Africa’s Rand Refinery. The joint operation is positioned to process at least one metric tonne of gold weekly, with plans for future expansion.
This shift marks a significant departure for Africa’s top gold producer, which has historically exported raw gold for decades. However, the launch coincides with major concerns over whether Ghana can assure international buyers that its refined gold is free from illicit material.
The spectre of ‘galamsey’ (illegal mining) looms large. The environmentally destructive practice has polluted rivers, destroyed farmland, and dominates the national conversation on mining.
Richard Nunekpeku, Deputy CEO of the state gold marketing company GoldBod, stated the agency is developing a solution. He announced a pilot traceability programme covering up to 600 mines to ensure gold supplied to the refinery is from licensed, sustainable operations.
“The goal is to ensure that all gold supplied to the Gold Coast Refinery is traced to make sure they are from sustainable mines,” Nunekpeku said last month.
Yet, industry observers warn that refining at scale before a fully functional traceability system is operational poses a reputational risk. Major international buyers, including central banks and top-tier refiners, adhere to strict responsible sourcing standards set by bodies like the London Bullion Market Association.
Without clear provenance, they argue, Ghana’s refined gold could face compliance discounts, higher costs, and limited market access.
The stakes are high. Ghana’s gold exports hit a record near $21 billion in 2025. Approximately half of that—over $10 billion—came from the artisanal and small-scale mining (ASM) sector, now fully managed by GoldBod.
Data reveals a market divide: nearly 99% of that ASM gold was sold to markets like Dubai and India, which typically offer lower prices and have less stringent sourcing rules. Only 1.2% reached more premium destinations like Switzerland and the United States.
Meanwhile, in the large-scale mining sector, the government is pursuing new legislation to replace the flat royalty rate with a sliding scale of 5% to 12%, intended to increase state revenue during gold price booms. Mining companies are reportedly lobbying for a lower band.
As Ghana’s new refinery ramps up production, its ability to prove its gold is clean will determine not just its premium market appeal, but the ultimate success of its value-addition strategy.
