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Private aggregators, not state, will bear local refining costs – GoldBod

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The Ghana Gold Board (GoldBod) says the cost of refining gold locally will not be borne by the state institution, but rather by self-financing gold aggregators and their approved foreign offtakers.

Speaking in an interview on Joy FM's Middaynews, on Tuesday, September 1, the Media Relations Officer of GoldBod, Prince Kwame Minkah, says the arrangement is intended to ensure that the mandatory local refining policy maximises the economic value Ghana derives from its gold resources without placing an additional financial burden on GoldBod.

According to him, the operational directive under the Ghana Gold Board Act, 2025 (Act 1140), provides that refining costs will be borne by self-financing aggregators or their approved foreign offtakers.

“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 in response to concerns that higher local refining costs could affect GoldBod’s earnings.

He stressed that the refining charges would be settled directly between the private parties and approved local refineries before GoldBod clears the export documentation.

Mr Minkah therefore maintained that the arrangement would not reduce GoldBod’s net revenue or statutory fees.

“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 added that GoldBod’s net revenue from gold exports and statutory fees would remain intact under the arrangement.

Mr Minkah further explained that refining gold domestically to 99.99% purity would enable Ghana to capture additional value that is otherwise lost when raw gold is exported for processing abroad.

He said unrefined gold, which contains silver, copper and other impurities, is typically exported at a discount, limiting the value Ghana derives from its gold resources.

Mr Minkah said the policy is also expected to support job creation and industrialisation by strengthening Ghana’s domestic refining sector and creating opportunities for technical skills development and related industries.

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