The Ghana Chamber of Mines is calling on government to take a more active role in reducing local gold refining costs as Ghana moves to keep more of the value generated from its mineral resources within the economy.
Chief Executive Officer of the Chamber, Dr Ken Ashigbey, says the push towards domestic refining is worth pursuing, but the cost of making the transition cannot be left entirely to mining companies, aggregators and refinery operators.
“Government needs to put its skin in the game,” he said.
His comments come days before a new Ghana Gold Board directive requiring Self Financing Aggregators to refine gold doré in Ghana before export takes effect on September 1, 2026.
Once the directive begins, unrefined gold doré will no longer receive export approval. Refining must take place at a facility approved or designated by GoldBod, with the aggregator or its approved offtaker paying the cost.
Taxes and Levies Under Scrutiny
Dr Ashigbey said one immediate area government should examine is the tax and levy structure facing local refineries.
“The issue, of course, is that it is coming from the taxes and the levies that are on; government would have to look at that, and I know that conversation is going on.” - Dr Ashigbey
The Chamber wants the transition handled in a way that makes Ghanaian refining commercially competitive rather than simply creating another cost layer in the gold value chain.
Private refinery operators also have a responsibility, Dr Ashigbey argued. They must invest in technology capable of improving efficiency and lowering production expenses.
“The issues of these private sector people who own the refineries in terms of the technology that they need to put in to be able to ensure that they reduce their cost, it’s something that we need to do.” - Dr Ashigbey
Power Costs Could Shape Refinery Economics
Energy is another major pressure point.
Dr Ashigbey suggested that government could consider whether strategically important refineries should receive a greater share of cheaper hydroelectric power within Ghana’s energy mix.
“Because of the criticality of refineries, is it possible that in the energy mix, we will give them, you know, a lot more of the hydro that is cheaper?” he asked.
He also pointed to proposed large scale solar investments under the 24 hour economy programme, which he said could potentially lower electricity costs to between three and four cents per kilowatt hour.
Such reductions could matter considerably for refinery operators, where energy expenses directly affect processing costs and the competitiveness of locally refined gold.
Shared Cost for Value Addition
GoldBod’s directive forms part of Ghana’s broader push towards ending raw mineral exports by 2030 and increasing domestic beneficiation.
For Dr Ashigbey, the objective is sound. The question is how the costs are shared.
“So I think that this issue of beneficiation is a good thing for us, and, you know, all of us need to chip in,” he said.
He cited costs already borne by large scale mining companies under the Ghana Accelerated National Reserve Accumulation Programme as evidence that industry is already making financial concessions in support of national policy.
His argument is therefore not against local refining. It is that government, miners and private refinery operators need to carry the transition together.
“But it has to be done collaboratively. Government need to embrace industry to all work together so that we all can reduce the cost of doing this, because we’re looking at the issues of value.” - Dr Ashigbey
As Ghana pushes deeper into mineral value addition, that cost sharing question may determine whether local refining becomes a sustainable industry or simply an expensive compliance requirement.
READ ALSO: High Energy Costs Could Stall Africa’s Industrialisation - Ato Forson
