GoldBod’s local refining directive will boost value retention – Chamber of Mines CEO

The Chief Executive Officer of the Ghana Chamber of Mines, Engineer Ken Ashigbey, has welcomed the Ghana Gold Board’s (GoldBod) directive requiring the local refining of gold doré before export.

GoldBod has directed all Self-Financing Aggregators (SFAs) to ensure that gold doré purchased under arrangements with approved Offtakers is refined in Ghana before export.

GoldBod’s directive takes effect on Tuesday, September 1, and applies to all SFAs and approved Offtakers operating under arrangements regulated by the Board.

Under the directive, no gold doré purchased under an arrangement with an approved Offtaker will be allowed to leave Ghana in its unrefined state.

The Board has also directed SFAs to amend their existing offtake agreements by Monday, August 31, to incorporate the mandatory local refining requirement.

Reacting to this on Accra-based TV3’s Ghana Tonight on Tuesday, August 25, Ken Ashigbey said the policy could also support efforts by large-scale mining companies and government to build the capacity of local refineries to meet international standards.

He said the Ghana Chamber of Mines would support efforts to gradually build the capacity of local refineries to attain London Bullion Market Association (LBMA) accreditation.

“If we’re going to get into that point, then the issue about value retention would improve, and I’m pretty sure that the large-scale mines would also work with government, using this 30%, gradually to build the capacity of our local refineries for them to also attain the LBMA, so that there will be a lot more value retained,” he said.

However, Mr Ashigbey said Ghana must ensure that local refining is competitive to make the policy sustainable.

He stressed the need for measures that would enable local refineries to operate efficiently and competitively compared with refineries outside the country.

Meanwhile, GoldBod has cautioned that exporting or attempting to export unrefined gold in breach of the directive could result in the refusal or suspension of export approvals, suspension or revocation of licences, administrative sanctions and other enforcement measures.