The Association of Small-Scale Miners has defended the decision to compel gold traders to refine their gold locally before export, arguing that the policy must be assessed beyond the immediate cost to operators.

Communication Director of the Association, Abdul Razak Alhassan, says that while local refining could increase operational expenses, the wider economic benefits, including job creation, must also be considered.

Speaking on Joy News’ PM Express on Wednesday, Mr Alhassan acknowledged concerns about the cost implications of the directive but said gold production already entails significant expenses for industry players.

“Yes, there’s a possibility. But another angle we need to look at is that gold itself is a commodity with many challenges. So sometimes you need to work on yourself; you need to weigh yourself before you enter into that industry.”

He said operators already incur substantial costs to secure gold ore and manage their operations.

“So the operational cost and everything, we as industry players, even to get the ore itself, you incur so many challenges or so many costs.”

His comments come after the Ghana Gold Board (GoldBod) directed all Self-Financing Aggregators (SFAs) to refine gold doré in Ghana before exporting it.

The directive takes effect from September 1, 2026. It means unrefined gold doré will no longer be approved for export.

GoldBod says the policy forms part of its mandate under the Ghana Gold Board Act, 2025, to regulate the purchase, sale, refining, value addition and export of gold.

Under the directive, the refining must be done at a refinery approved or designated by GoldBod. The cost is to be borne by the SFA or its approved Offtaker.

Alhassan believes that cost should not be the only consideration in assessing the policy.

“So if they are also taking the other side of it, I don’t think there should be any big deal. So I think them bearing the cost shouldn’t be a big deal, because it will also help the country and then reduce youth unemployment.”

He argued that the establishment and operation of refineries could create employment opportunities for young people.

“Because when this refinery kicks off, as my other colleague said, they have some number of people, youth, that they will employ.”

For him, the debate should therefore consider both the financial burden on operators and the potential benefits to the wider economy.

“So we should look at the balance. While they are looking at the cost, yes, the operational cost may be higher, but we should also consider how we are handling these two issues. And I think they have to bear the cost.”

GoldBod’s local refining policy is part of a broader push to retain more value from Ghana’s gold resources before export.

The Board has already entered into arrangements for locally refining gold from the small-scale mining sector.