Chairman and Chief Executive Officer of the Dr. Said Deraz, has pledged that the the refinery will exclusively process gold from responsible and legitimate sources in a landmark agreement with the Ghana Gold Board (GoldBod Gold Coast Refinery,).
This commitment is designed to synchronize the refinery’s operations with global ethical standards, ensuring that every ounce of gold refined within its walls is free from the taint of illicit trade or environmental exploitation.
By aligning with GoldBod’s stringent procurement protocols, the refinery aims to bolster the integrity of Ghana’s precious minerals on the international market, moving the nation closer to becoming a hub for certified, conflict-free gold.
“Gold Coast Refinery has all the facilities that meet international standards, it has all the capacity to process up to one hundred metric tonnes of gold yearly. We hold the necessary license to refine gold from Africa and responsible sources including those by the Ghana Gold Board. It will be ethically prudent to support GoldBod’s resolve to purchase gold from legitimate sources for the refinery operations.”
Dr. Said Deraz
This strategic move serves as a critical pillar in Ghana’s broader industrialization agenda, specifically targeting the enhancement of local refining capacity to retain economic value within the country.
Historically, a significant portion of Ghana’s gold has been exported in raw form, leading to “historical purity losses” and the loss of millions of dollars in refining fees to foreign entities.
The new deal stipulates that GoldBod will supply a steady stream of raw material to the refinery, which boasts a yearly capacity of up to one hundred metric tonnes.
By insisting on “responsible and ethical sources,” the Ghana Gold Board is effectively cracking down on smugglers and unregulated intermediaries who have long undermined the formal economy.
This partnership not only creates direct and indirect jobs but also ensures that “silver content and other precious metals” are accurately recovered and taxed, providing a substantial boost to the national treasury.
The Perils of Unethical Sourcing on Industrial Stability
The impact of illegal and unethical sourcing often referred to as galamsey cannot be overstated, as it poses a terminal risk to international accreditation and long-term facility viability.
When gold is sourced from unregulated sites, it often carries chemical impurities from mercury and cyanide used in clandestine processing, which can damage sensitive refining equipment and lower final purity levels.
Furthermore, the global bullion market, governed by strict international standards, maintains a zero-tolerance policy toward minerals linked to human rights abuses or environmental destruction.
If the refinery were to process unverified gold, it would face immediate blacklisting, rendering its 99.9% purity hallmarks worthless in premium international markets.
This pledge is therefore not just a moral stance but a “business necessity” to safeguard the refinery’s multi-million-dollar investment and its path toward full global certification.
Strengthening the Value Chain Through Traceability
The cornerstone of this deal is the implementation of a robust traceability framework that follows the gold from the “point of extraction to the final hallmark” to ensure absolute transparency.
Illegal mining is estimated to cost Ghana upwards of $2 billion annually in uncollected taxes and lost revenue, a figure that the state is desperate to recoup through formalization.
By committing to ethical sourcing, the Gold Coast Refinery provides a legitimate outlet for artisanal and small-scale miners (ASM) who are willing to formalize their operations and avoid the “clutches of smugglers.”
This “formalization through value addition” creates a closed-loop system where gold is graded, assayed, and refined locally, eliminating the shadows where illicit actors typically operate.
The collaboration with global partners further reinforces this commitment by providing the technical mentoring required to ensure that Ghana’s internal “due diligence” processes meet the highest benchmarks.
Economic Sovereignty and National Industrialization
The transition from a “raw gold exporter to a refined gold producer” is a fundamental change in Ghana’s macroeconomic management that seeks to stabilize the local currency.
Dr. Deraz noted that the refinery, which was commissioned in November 2016, is now fully operational to support the drive for “domestic value addition” and industrial growth.
Under the new agreement, the refinery will utilize its massive capacity to support the government’s efforts to increase the tax base and provide high-purity gold for national reserves. This enhances national economic sovereignty by reducing the need for foreign exchange to pay for refining services abroad, which has long been a “drain on the country’s finances.”
Ultimately, this pledge of ethical sourcing acts as a catalyst for trust; it signals to global investors that Ghana is no longer just a source of raw ore, but a sophisticated, responsible player in the global gold refinery ecosystem.
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