Game-changing gold refining deal to transform economy signed

By Innocent Samuel Appiah

In a move that could fundamentally reshape Ghana’s gold sector and unlock billions of dollars in untapped economic value, the Ghana Gold Board has signed a landmark agreement with Gold Coast Refinery and Run Refinery that promises to transform the country from a raw gold exporter into a refined gold producer.

The deal, which takes effect February 1, 2026, represents the first formal government commitment to process gold domestically on a significant scale—a shift that experts say has been overdue for decades.

Under the agreement, a minimum of one metric ton of gold will be refined locally each week, with the potential to scale up as capacity increases. While the volume might seem modest, the implications are profound.

For generations, Ghana has exported its gold in raw form, watching millions of dollars in refining fees, processing value, and related economic benefits flow to refineries in Switzerland, Turkey, and other foreign locations. This agreement aims to change that calculus entirely.

“This is groundbreaking,” said Sammy Gyamfi, CEO of the Ghana Gold Board, during the signing ceremony. “We are stopping the routine export of raw gold and retaining millions of dollars in refining fees and related economic benefits within Ghana.” The government has also secured a 15 percent free-carried interest in Gold Coast Refinery, meaning Ghana will receive dividends from the company’s profits while maintaining oversight of operations.

The hidden cost of raw gold exports

The decision to pursue domestic refining stems from a sobering reality that Ghana’s policymakers have long grappled with: the country has been systematically undervalued in international gold markets.

When Ghana exports unrefined gold, the final purity is determined by foreign refineries through assays conducted abroad. Historically, these assays have revealed purity losses and undervaluations that have cost Ghana significant revenue—losses that might have been prevented or minimized with domestic processing and verification.

Consider the mechanics: a gold producer ships ore or concentrate to Ghana Gold Board, which then exports it raw to international refineries. Those foreign refineries perform the final assay, determining the exact purity and weight of pure gold.

By that point, Ghana has no ability to verify these results or recover any materials lost during processing. The refining fees—typically ranging from tens to hundreds of millions of dollars annually depending on global gold prices and volumes—go entirely to foreign companies.

“We discovered severe underutilisation and operational shortcomings during a review of Gold Coast Refinery,” Mr Gyamfi explained, noting that the government subsequently implemented technical recommendations to improve the facility’s capacity.

The revelation that Ghana possessed an underutilised refinery capable of handling significant volumes while simultaneously exporting raw gold highlighted a critical inefficiency in the nation’s gold value chain.

Building Africa’s refining powerhouse

Central to the agreement is a partnership with Run Refinery, the only London Bullion Market Association (LBMA)-accredited refinery in Africa. The LBMA accreditation is crucial—it’s the international standard that ensures refined gold meets stringent quality, ethical sourcing, and environmental standards.

Run Refinery will provide technical support and mentoring to help Gold Coast Refinery achieve its own LBMA accreditation, a process that could position Ghana as the continent’s premier gold refining destination.

This technical partnership is not incidental; it’s essential to the agreement’s success. LBMA accreditation requires sophisticated equipment, rigorous quality control procedures, and demonstrated capacity to trace gold through responsible sourcing channels. By securing Run Refinery’s expertise, Ghana is essentially fast-tracking Gold Coast Refinery’s path to international certification—a journey that might otherwise take years.

The agreement’s emphasis on sustainability and traceability reflects the global gold industry’s evolution toward ethical sourcing. All gold refined under the agreement must comply with OECD and LBMA responsible sourcing guidelines.

The Ghana Gold Board has committed to launching a track-and-trace system to verify that gold comes from legitimate sources, a development that officials say makes the formalisation of artisanal and small-scale mining (ASM) an urgent imperative.

This distinction is important for Ghana’s reputation. The international gold market increasingly scrutinises the origins of precious metals, with buyers—particularly institutional investors and jewelry companies—demanding assurance that gold was not sourced through environmentally destructive practices or conflict zones. By implementing comprehensive traceability, Ghana’s gold gains a premium in international markets, potentially commanding higher prices.

The economic multiplier effect

The financial implications of domestic refining extend far beyond refining fees. Each gold bar refined locally will bear a hallmark featuring Gold Coast Refinery, the Ghana Gold Board, the Ghana Standards Authority, and the Bank of Ghana—essentially Ghana’s quality stamp on the world market. This certification enhances the reputation and integrity of Ghana’s gold exports, potentially commanding premium prices from buyers who value the assurance.

The agreement projects numerous direct and indirect benefits. Gold Coast Refinery is committing to 24/7 operations aligned with Ghana’s 24-hour economy policy, creating jobs in operations, quality control, logistics, and ancillary services. Higher employment translates to increased tax revenues for the government through personal income taxes and corporate levies.

Crucially, the agreement addresses a long-overlooked opportunity: the recovery of silver. Historically, when Ghana’s gold was refined abroad, any silver content was processed and retained by foreign refineries. Under the new arrangement, Ghana can accurately determine silver content and retain it for local fabrication and jewelry production.

This silver—often a byproduct of gold refining—represents additional value that can supply Ghana’s jewelry and fabrication industries, reducing their dependence on imported precious metals.

The refining fees themselves—millions of dollars that previously flowed out of Ghana—will now remain in the domestic economy, strengthening the financial sector and providing capital for reinvestment in other economic activities.

Scaling and integration challenges

While the agreement represents a major policy shift, its success depends on execution. The commitment to process a minimum of one metric ton weekly is substantial but requires consistent supply from gold producers. The Ghana Gold Board is negotiating with the Chamber of Mines to integrate large-scale mining producers into domestic refining arrangements, recognizing that ASM alone cannot supply the volumes needed for the refinery to operate at optimal capacity.

The gradual phase approach outlined in the agreement—ramping up volumes subject to capacity improvements—suggests realistic expectations about the challenges ahead. Building processing capacity takes time, and ensuring consistent quality output to LBMA standards requires investment and expertise.

A turning point

For Ghana, this agreement represents a turning point in how the nation approaches its most valuable natural resource. Rather than simply extracting and exporting raw materials, Ghana is moving toward value addition—refining gold domestically and capturing the economic benefits that come with processing. The 15 percent government stake ensures that Ghana shares in the refinery’s profitability, creating a revenue stream beyond traditional taxation.

As the February 1 start date approaches, all eyes will be on Gold Coast Refinery’s ability to meet commitments and achieve LBMA accreditation. Success could position Ghana as a model for African nations seeking to maximize the value of their natural resources. For a country that has long exported its greatest wealth in unprocessed form, keeping gold refining domestic isn’t just an economic strategy—it’s a statement about reclaiming control over Ghana’s economic destiny.

The post Game-changing gold refining deal to transform economy signed appeared first on The Business & Financial Times.

Read Full Story