Government, large-scale miners agree on 30% gold sale for local reserve accumulation

The government has reached an agreement with Ghana’s large-scale mining companies for the implementation of a key component of the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), under which 30 per cent of their gold production will be sold to the Bank of Ghana (BoG) and the Ghana Gold Board (GoldBod) for local processing and refining.

The agreement was formalised on Thursday through a Memorandum of Understanding (MoU) signed by the Ministry of Finance, Ministry of Lands and Natural Resources, Bank of Ghana, Ghana Gold Board and the Ghana Chamber of Mines, which represented the country’s large-scale mining companies.

Speaking at the signing ceremony, Finance Minister Dr Cassiel Ato Forson said the agreement followed extensive consultations among government, the Chamber of Mines, mining companies, the central bank and GoldBod.

He said the signing marked the completion of negotiations on the implementation of the 30 per cent gold purchase component of GANRAP.

“Today's signing of the memorandum of understanding signifies that we have successfully come to a mutual understanding that that policy will be implemented effective the date of signing,” he said.

Under the arrangement, gold purchased from large-scale mining companies will be processed and refined locally before being transferred to the Bank of Ghana to support the country’s reserve accumulation efforts.

Dr Forson said the agreement represented an important step towards strengthening Ghana’s foreign reserves and improving macroeconomic stability.

The Minister for Lands and Natural Resources, Emmanuel Armah-Kofi Buah, described GANRAP as a significant initiative whose potential impact on macroeconomic stability and financial management could not be overemphasised.

He commended the Chamber of Mines and the large-scale mining companies for their cooperation during the negotiations and assured them that his ministry would continue working with the industry to address challenges that may arise during implementation.

Mr Buah stressed the need for flexibility as the new arrangement was rolled out, noting that resolving emerging concerns would ultimately serve the national interest.

BoG Pledges Support

The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, pledged the central bank’s support for the successful implementation of the agreement.

He acknowledged the efforts of GoldBod, the Ministry of Finance and the Ministry of Lands and Natural Resources in bringing the various stakeholders together to reach an agreement.

Dr Asiama said the central bank would work with all relevant institutions to ensure that the programme delivered maximum benefits to the Ghanaian economy.

Mining Industry Supports Programme

The Chief Executive Officer of the Ghana Chamber of Mines, Eric Asubonteng, said the mining industry fully supported the objectives of GANRAP, particularly its focus on strengthening Ghana’s macroeconomic resilience.

He said building a strong reserve buffer would help the country withstand external economic shocks while also providing benefits to businesses operating in Ghana.

Mr Asubonteng also welcomed the programme’s objective of establishing internationally accredited gold refineries in Ghana.

He disclosed that the Chamber had, even before the introduction of GANRAP, begun exploring opportunities to promote local gold refining through engagements with refineries in Ghana and South Africa.

He, however, called for GANRAP to extend beyond its current timeframe and evolve into an incentive-based system that would encourage local processing and refining.

Citing countries such as Tanzania, India and South Africa, he said incentives could be used to promote greater local beneficiation of minerals.

According to him, such an approach could position Ghana as a major gold refining hub for the West African sub-region by leveraging the significant volumes of gold produced domestically and in neighbouring countries.

“We need to look at GANRAP beyond even 2028,” he said, arguing that an incentive-driven framework would make local beneficiation more sustainable.

Mr Asubonteng said the Chamber would continue collaborating with government and other stakeholders to address implementation challenges while ensuring that the broader objectives of GANRAP were achieved.

The signing of the MoU brings government, the Bank of Ghana, GoldBod and the large-scale mining industry under a common framework for gold purchases, local refining and the accumulation of Ghana’s national reserves.