GHANA has agreed with its large-scale mining companies to increase the share of gold output sold to the state from 20% to 30%, effective July 1, as the country moves to build foreign currency reserves and develop domestic refining capacity, said Reuters.
Under the arrangement, miners including Newmont, Gold Fields and China’s Zijin will sell gold in dore form to state entity GoldBod at a discount of 0.55% to the central bank’s reference rate, with settlements made in Ghanaian cedis.
Africa’s largest gold producer launched its purchase programme in 2022 through an agreement with the Ghana Chamber of Mines. The scheme was revamped in February with an ambitious target of accumulating up to 157 tons of gold — equivalent to fifteen months of import cover — by 2028. Central bank holdings stood at 19.2t as of February.
The expanded programme also aims to secure London Bullion Market Association accreditation for at least one domestic refinery by 2030. Gold acquired through the scheme will be refined locally before being transferred to an LBMA facility for melting and stamping prior to being added to reserves. GoldBod already buys the entire output of Ghana’s artisanal mining sector.
Building gold reserves provides a buffer against external economic shocks and generates dollar income when metal is sold on international markets. Central banks globally have been accelerating bullion purchases as elevated prices reinforce gold’s appeal as a reserve asset, said Reuters.
