Data and policy analyst, Mr. Alfred Appiah has urged the government to aggressively tackle illegal mining, locally known as galamsey, in order to sustain the nation’s recent momentum in domestic gold refining.
He emphasized that establishing a fully traceable and responsible gold supply chain is a non-negotiable prerequisite for local refineries seeking international certification.
Without decisive regulatory and environmental enforcement on the ground, the country’s efforts to retain maximum value from its precious mineral resources could face severe setbacks on the global market.
“Sustaining this progress also means tackling galamsey aggressively and ensuring that our gold can be traced to legitimate sources. LBMA accreditation involves rigorous supply-chain due diligence. No refinery can meet that standard if it cannot demonstrate that its gold comes from responsible sources.”
Data and policy analyst, Mr. Alfred Appiah
Mr. Appiah highlighted that global industry benchmarks, particularly accreditation by the London Bullion Market Association (LBMA), require strict supply-chain due diligence that cannot tolerate illicit sourcing.
Local refineries must demonstrate that raw gold is sourced from legitimate, legally compliant operations to gain foreign market trust.
As Ghana ramps up its domestic refining throughput, eliminating galamsey becomes the critical linchpin that protects supply chain integrity and unlocks high-value international buyer confidence.
Local Refining Pace Accelerates Following New Export Directives
Ghana is making substantial headway in its strategic shift toward refining a larger share of its gold output within its borders.
According to recent performance metrics released by GoldBod, the state commodity trading body purchased and exported 85.4 tonnes of gold this year, with approximately 30% amounting to 25 tonnes refined locally.
The momentum gathered notable speed in October, when 5.4 tonnes out of the total 5.7 tonnes bought were processed domestically, reflecting a dramatic rise from zero local processing at the end of 2024.
This significant operational surge was primarily driven by a mandatory regulatory policy enacted in September by GoldBod, which compels raw gold to undergo local refining prior to export.
Spearheading this downstream transition are two domestic facilities, Gold Coast Refinery and Royal Ghana Gold.
Operating under contractual arrangements with GoldBod, both facilities receive raw gold consignments and process them for a tolling fee set at roughly 0.3% of the refined metal’s total value.
The Strategic Quest for LBMA Accreditation and Value Addition
Over the next three to five years, policy directives aim to secure LBMA accreditation for at least one domestic refinery.
Achieving this international benchmark is crucial because the LBMA standard provides global commercial banks and major institutional buyers with total assurance regarding gold bar purity and supply chain integrity.
Currently, South Africa’s Rand Refinery stands as the sole LBMA-accredited facility on the African continent, and it is actively assisting Gold Coast Refinery in navigating the rigorous qualification process.
Until a Ghanaian entity obtains this accreditation, locally refined gold must undergo secondary processing through an accredited offshore refinery before gaining full acceptance from premier international buyers.
The underlying economic reality, however, dictates that primary refining remains a low-margin endeavor that serves merely as an entry point into broader industrialization.
At the standard 0.3% tolling fee, refining 25 tonnes generates approximately US$11 million in gross fee revenue on bullion valued at US$3.6 billion. Consequently, economic planners view refining as a springboard toward higher-yield downstream manufacturing, such as jewelry fabrication.
Expanding Downstream Opportunities Beyond Primary Processing
The long-term economic prize lies in transforming raw bullion into finished consumer goods rather than relying solely on raw or semi-processed exports.
Initial steps are underway to establish a specialized Gold Village in Accra by 2027, an infrastructure project designed to seed a local manufacturing ecosystem.
If successfully executed, the facility will enable local artisans and young designers to craft rings, chains, and culturally styled kente-inspired jewelry targeted at domestic consumers, the global African diaspora, and international markets.
From an economic perspective, converting a single tonne of gold into high-end jewelry generates significantly higher retained value, tax revenues, and employment opportunities than exporting the equivalent volume as unrefined doré bars.
Realizing this vision requires maintaining strict compliance oversight across all operational touchpoints.
By supporting GoldBod’s regulatory mandate while clamping down on environmental degradation in the mining sector, the nation can establish an integrated value chain that converts mineral wealth into lasting national prosperity.
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