Aggregators, offtakers to bear gold refining costs

The Ghana Gold Board (GoldBod) has clarified that the cost of refining gold locally under the country’s mandatory domestic refining policy will not be borne by the state institution, but by self-financing gold aggregators and their approved foreign offtakers.

GoldBod’s Media Relations Officer, Prince Kwame Minkah, said the arrangement was designed to ensure that Ghana maximises the economic value of its gold resources without imposing an additional financial burden on the state-owned gold trading institution.

He explained that the operational directive under the Ghana Gold Board Act, 2025 (Act 1140), provides for refining costs to be absorbed by self-financing aggregators or their approved foreign buyers, depending on the commercial agreements between the parties.

“Commercial party absorption is what we are going to be employing here. The refining cost is strictly borne by the self-financing aggregators or their approved foreign offtakers, and based on their commercial agreements,” he said.

Mr Minkah was responding to concerns that the additional cost of refining gold locally could reduce GoldBod’s earnings or affect the revenue accruing to the state.

No impact on state revenue
He stressed that the refining charges would be settled directly between the private parties and approved local refineries before GoldBod clears the necessary export documentation.

“There is zero negative impact on state revenue because refining charges are settled directly between private aggregators, offtakers, and then the approved local refineries before export documentation is cleared by the Gold Board,” he said.

According to him, GoldBod’s net revenue from gold exports and its statutory fees would therefore remain intact under the new arrangement.

The clarification comes as Ghana moves to strengthen domestic processing of gold and reduce the export of unrefined bullion, with the policy aimed at retaining a greater share of the value generated from the country’s gold resources within the domestic economy.

Higher value from local refining
Mr Minkah said the requirement to refine gold domestically to 99.99 per cent purity would enable Ghana to capture additional value that would otherwise be realised by foreign processors.

He explained that gold produced by small-scale miners and other sources typically contains impurities, including silver and copper, which are removed during the refining process.

When such gold is exported in an unrefined form, he said, it is generally sold at a discount, limiting the value Ghana captures from the resource.

Local refining, therefore, would allow more of the value generated during the processing stage to remain within Ghana while also strengthening the country’s position in the international gold value chain.

The policy is expected to increase demand for domestic refining capacity as approved refineries become more integrated into the gold export process.

Jobs and industrialisation
Beyond the immediate financial benefits, Mr Minkah said the mandatory refining policy was expected to contribute to job creation and industrial development.

He said expanding Ghana’s domestic refining industry would create opportunities for employment, technical skills development and the growth of supporting businesses and industries.

The policy could also deepen local participation in the gold value chain by shifting Ghana from primarily producing and exporting raw or semi-processed gold towards undertaking more processing activities domestically.

Mr Minkah maintained that the arrangement was structured to ensure that the additional refining requirement did not become a cost to GoldBod or reduce the statutory revenue due the state.

Instead, the financial responsibility would rest with the private commercial parties involved in the transaction, while Ghana would retain the broader economic benefits associated with domestic refining, including value addition, industrialisation, skills development and employment.

The GoldBod position effectively separates the cost of complying with the local refining requirement from the state’s revenue stream, with private aggregators and their approved foreign offtakers expected to negotiate and settle the relevant refining charges directly with approved local refineries before gold is cleared for export.