Ghana Mandates Local Gold Refining to Capture Greater Mineral Value

Ghana has implemented a new regulatory requirement forcing certain gold exporters to process gold dore within the country before shipping it abroad. Effective September 1, the Ghana Gold Board (GoldBod) has barred Self-Financing Aggregators (SFAs) from exporting raw gold dore purchased under offtake agreements unless it undergoes local refining first. This policy, which stems from the Ghana Gold Board Act of 2025, represents a strategic shift in how the nation manages its most significant natural resource, aiming to retain a larger share of the economic value that has historically been captured by overseas processors.

The directive, issued by GoldBod’s Compliance Directorate on August 24, requires companies to amend existing offtake contracts to ensure compliance. Export applications are now contingent upon proof of local refining, settlement of applicable charges, and adherence to updated regulatory standards. While the government views this as a vital step toward industrialization, industry participants have noted that the short implementation window has created logistical challenges for firms currently operating under established international contracts.

The move is part of a broader government vision to transform Ghana’s gold sector from a raw-export model to one characterized by domestic value addition. By mandating local refining, the government intends to create jobs, reduce capital flight associated with foreign processing fees, and provide a steady supply of refined bullion for local industries, including jewellery manufacturing. Prince Kwame Minkah, media relations officer for GoldBod, emphasized that the policy is consistent with President John Mahama’s 2030 vision for natural resource management.

“Ghana is one of the top gold-producing countries in the world, so we need to truly maximise national benefits,” Minkah stated. “Value addition is key.” The government’s long-term plan includes the development of a dedicated gold village, modeled after Dubai’s Gold Souk, to further centralize and formalize the trade. This initiative is designed to ensure that the economic benefits of the country’s gold production are felt domestically, rather than solely enriching foreign value chains.

For companies like United Gold International Limited, the policy represents a fundamental change in the operational landscape. Clement Edem Asare Morjah, the company’s chief executive, acknowledged the potential for long-term national gain while highlighting the immediate friction caused by the rapid implementation. “For the first time since independence, we have a government determined to make sure Ghana benefits from our biggest resource, gold,” Morjah said. He noted that while the transition requires amending existing agreements, the move addresses a long-standing anomaly where significant margins were lost to overseas processors.

Morjah expressed optimism that the policy would eventually standardize the quality of Ghanaian gold bullion, making it more predictable for international markets. “Give it time,” he added. “Everybody will understand the benefit. When you’re doing business, you don’t only think about your individual benefit as a company. You must think about the body corporate as a nation.” Despite these sentiments, the requirement to refine locally places a new burden on aggregators and offtakers to secure capacity within a limited number of domestic facilities.

Ghana currently hosts four licensed gold refineries, including the Gold Coast Refinery and the Royal Ghana Gold Refinery. The Gold Coast Refinery, which began operations in 2016, has a capacity of approximately two tonnes per week, while the Royal Ghana Gold Refinery, commissioned in August 2024, handles up to 400 kilograms daily. GoldBod has established supply agreements with these facilities, including a commitment to supply at least one metric tonne of gold per week to the Gold Coast Refinery.

To support the increased demand for local processing, GoldBod is actively working to expand domestic capacity. Officials have indicated that they are in the process of developing what they describe as the largest refinery on the African continent. This infrastructure push is intended to ensure that the new export regulations do not create a bottleneck that could stifle the industry. The government is also working to position these domestic facilities to meet international accreditation standards, which would further enhance the competitiveness of Ghanaian gold on the global market.

The Ghana Gold Board has signaled a strict approach to enforcement, warning that any attempt to export unrefined dore in violation of the new rules will be treated as a breach of license conditions. Potential sanctions for non-compliance include the suspension or revocation of export licenses, administrative penalties, and other enforcement measures. This regulatory tightening is intended to bring greater formalization to the artisanal and small-scale mining sector, which accounted for approximately 96 tonnes of the country’s 185-tonne gold production in 2025.

George Darkwa, a gold and mineral expert, characterized the requirement as a positive development for the industry’s formalization. He urged foreign investors to align with Ghana’s efforts to develop its domestic gold industry, noting that the move enhances value retention. As the government continues to integrate its gold policy with reserve accumulation and industrial development, the success of this directive will likely depend on the ability of domestic refineries to scale operations efficiently while maintaining transparency and regulatory compliance across the entire supply chain.