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Ghana Expands Gold Production, Aims for Global Market Leadership

New Mines Open, Gold Refinery Construction Enhances National Output

by Adenike Adeodun

In an ambitious move to bolster Ghana’s gold industry, President Nana Addo Dankwa Akufo-Addo has announced the construction of gold mines in the Ahafo, Upper East, and Upper West regions. This strategic development was revealed during his State of the Nation Address on Tuesday, February 27, 2024, highlighting the nation’s proactive approach to enhancing its gold production capabilities. With the establishment of these new mines, Ghana’s gold output is projected to surge to approximately 4.5 million ounces per year, signifying a significant leap in the country’s mining sector.

In a further bid to maximize the value derived from this increased production, the government, in collaboration with private partners, has embarked on the construction of a 400-kilogram capacity gold refinery. This initiative is not only poised to elevate Ghana’s gold industry to new heights but is also on the cusp of achieving a prestigious certification from the London Bullion Market Association (LBMA), marking a critical milestone in the country’s quest for enhanced global competitiveness in the gold market.

Expanding beyond traditional resources, President Akufo-Addo also shed light on the nation’s forward-thinking policy regarding the exploitation and management of green minerals, such as lithium. This policy aims to ensure that Ghana benefits across the entire value chain of these increasingly important minerals, underpinning the country’s commitment to sustainable and inclusive growth in its mineral sector.

The President’s address underscored Ghana’s resurgence as a powerhouse in the African gold industry, reclaiming its status as the continent’s leading gold producer—a position previously held by South Africa. This remarkable achievement, according to President Akufo-Addo, is attributable to the government’s progressive policies, which have revitalized dormant mining operations, such as the Obuasi and Bibiani Mines, and facilitated the expansion of existing ones.

A noteworthy policy adjustment highlighted by the President was the reduction of the withholding tax on unprocessed gold by small-scale miners from 3% to 1.5%. This fiscal incentive has catalyzed a staggering 900% increase in gold exports from the small-scale sector over the past two years, showcasing the potential impact of targeted governmental interventions on sectoral growth.

Capitalizing on the burgeoning success of Ghana’s gold sector, the government has introduced the innovative Gold for Oil Policy. This policy leverages the country’s gold reserves to procure approximately 30% of its total crude oil consumption, illustrating a creative approach to addressing the nation’s energy needs while optimizing its natural resource endowments.

As Ghana continues to expand its mining infrastructure and refine its policy frameworks, the nation stands on the brink of a new era in its gold industry. Through strategic investments and the cultivation of a conducive business environment, Ghana aims to not only solidify its position on the global stage but also ensure that its natural wealth translates into tangible benefits for its people, fostering economic development and sustainable prosperity.


Source: Graphic Online

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