Gold refining in Ghana costs more than abroad, says Chamber of Mines CEO

Refining gold in Ghana comes with a higher price tag than doing so abroad, according to Kenneth Ashigbey, CEO of the Ghana Chamber of Mines and convenor of the Media Coalition Against Illegal Mining.

Ashigbey explained that several factors contribute to the elevated costs of local refining. These include the price of electricity, taxes levied on imported chemicals essential for the process, and the expense associated with treating industrial waste. These challenges hinder Ghanaian refineries from effectively competing on the international market.

Furthermore, the principle of economies of scale plays a significant role. Refineries in countries with larger operations can distribute their costs over a greater volume of gold, leading to lower per-unit costs. This disparity makes it difficult for smaller or less efficient Ghanaian operations to match international pricing.

However, discussions are underway between the GoldBod (presumably the Precious Minerals Marketing Company or a similar entity) and the Ministry of Finance to implement measures aimed at boosting the competitiveness of Ghana's refineries. Ashigbey emphasized that Ghana should aspire to be a regional center for gold refining, not just process its domestic output.

He believes that by enhancing the efficiency and cost-effectiveness of its refineries, Ghana can attract gold from other West African nations. This strategic shift requires not only improvements in operational efficiency but also government incentives to reduce refining costs and encourage more companies to process their gold within Ghana. Retaining more value from the nation's gold resources is a key objective tied to making local refining more competitive.

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The whole issue of beneficiation and value addition, we cannot look at it as a country-specific thing. It has to be a regional thing.