The vice president of IMANI Center for Policy and Education, Mr. Simon Bright has highlighted the complexities surrounding the establishment of the new gold refinery in Ghana, focusing on issues of certification and the credibility of the companies involved.
Bright Simon further explained that gold refining involves purifying gold to achieve higher purity levels, typically aiming for 99.99%. He emphasized the importance of certification, stating, “Certification means that some laboratory has done the right tests and that laboratory has the requisite instruments to do that test to confirm the purity.” Bright Simon elaborated that certification is essential for building trust among international gold buyers and for securing lower insurance costs.
Bright Simon highlighted the challenges that Ghanaian refineries face in achieving certification from reputable international bodies like the London Bullion Market Association (LBMA). He noted, “None of the refiners in Ghana have been able to get to LBMA certification because to get there, you need to operate for at least three years consistently and at a certain level of volume.”
This lack of certification creates a vicious cycle where refineries struggle to attract enough gold to refine, preventing them from obtaining the necessary certification. Bright Simon also raised concerns about the company Royal Gold Ghana, which is reportedly partnering with Ghana’s Precious Minerals Marketing Company (PMMC) to establish the new refinery.
“The company made $3,000 in revenue and incurred $250,000 in losses.” Mr. Bright revealed, casting doubt on whether the government has the resources to invest $20 million in the refinery project.
He questioned the financial and technical capacity of the Indian company involved, pointing out that it has no prior experience in gold refining and has primarily operated in the quarrying industry.
Furthermore, Bright Simon uncovered that the technical expertise for the refinery is being provided by a small consultancy in India, rather than the partnering company itself. He expressed concern about this arrangement, noting, “This raises a lot of fascinating issues,” especially given the involvement of political figures in the venture. Bright Simon’s findings suggest that the project may lack the necessary financial stability and expertise to succeed, raising further doubts about its long-term viability.
Transparency and Accountability
Bright Simon highlighted the need for a forensic audit into the ownership and financial dealings of the new refinery in Ghana. Bright Simon pointed out the concerns surrounding Rosy Royale’s 80% ownership in the refinery.
“We are confident at this stage to say that Rosie Royale is not the investor [and] in what way does it get the 80%?”
Bright Simon Vice President of IMANI Center for Policy and Education
Bright Simon further questioned the actual investment figures being reported, suggesting that the $20 to $25 million being publicized is not accurate. He mentioned insider information, hinting that “far less has been invested in this upfront refinery.” This discrepancy highlights the need for clarity on the actual financial contributions and the refinery’s working capital requirements.
Bright Simon expressed concerns about the potential for a major scandal, suggesting that the situation might be an attempt to control Ghana’s gold purchasing program.
“It begins to look like somebody had an intention to position this refinery as some grand thing so that it can put the Bank of Ghana Group purchasing program under it and use this as a mechanism to control the gold purchasing program.”
Bright Simon Vice President of IMANI Center for Policy and Education
This could have significant implications for Ghana’s gold industry. To address these issues, Bright Simon advocated for immediate government action, stating, “The government ought to commission a forensic audit immediately to establish who the actual owners are, at least the 80%, and the actual money spent on this refinery and its working capital issues.”
He stressed the importance of transparency and accountability to prevent Ghana from potentially “paying for the full refinery and only owning 20% of it. Despite the challenges faced in advocating for such transparency, especially in an election year, Simon affirmed Imani’s commitment to public education.
“We will do our best to make sure that people like you have all the information you need to ask the right questions, but the citizens have all the information they need to make the right judgments.”
Bright Simon Vice President of IMANI Center for Policy and Education
By raising awareness and encouraging public discourse, Bright Simon maintained that IMANI aims to hold the government accountable and ensure that the interests of the Ghanaian people are protected.
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