Ghana will begin purchasing 30% of gold produced by large-scale mining companies from July 1 under a new agreement aimed at strengthening the country’s foreign exchange reserves and expanding its domestic gold refining industry.
The new arrangement was disclosed on Thursday in a government statement announcing an agreement reached with large-scale mining companies through the Ghana Chamber of Mines.
The latest policy builds on Ghana’s domestic gold purchase programme introduced in 2022, when the Bank of Ghana began buying a portion of gold produced by mining companies to diversify the country’s foreign reserves, reduce dependence on foreign currencies and strengthen macroeconomic stability.
The programme initially required industrial miners to sell 20% of their annual gold output to the central bank, helping Ghana’s gold holdings rise to 19.2 metric tonnes by February. Earlier this year, the government revamped the initiative with the ambitious goal of increasing reserves to as much as 157 metric tonnes by 2028.
Under the new agreement, large-scale mining companies will now sell 30% of their gold production, in dore form, to the state-owned Gold Board (GoldBod), up from the previous 20% requirement.
- The purchases will be made at a 0.55% discount to the Bank of Ghana’s reference price and paid for in Ghanaian cedis.
- Beyond strengthening the country’s gold reserves, the initiative is also expected to support Ghana’s ambition of securing London Bullion Market Association (LBMA) accreditation for at least one domestic refinery by 2030.
- Under the arrangement, the gold will first be refined locally before being sent to an LBMA-accredited refinery for final melting, stamping and eventual inclusion in the Bank of Ghana’s reserves.
GoldBod already purchases the entire production of Ghana’s artisanal gold mining sector, with officials saying larger gold reserves will provide a buffer against external economic shocks while creating an additional source of foreign exchange earnings when needed.
