Ghana has reached a new agreement with large-scale mining companies to purchase 30 percent of their gold output beginning July 1, as the country moves to strengthen its foreign exchange reserves and expand local gold refining capacity.
The announcement was made by the government on Thursday as part of efforts to increase the nation’s gold holdings and reduce dependence on foreign currency inflows.
The initiative comes at a time when central banks around the world are increasing their gold reserves, with rising bullion prices making the precious metal a more attractive reserve asset.
As Africa’s largest gold producer, Ghana first introduced its gold purchase programme in 2022. Under the initial arrangement, mining companies agreed through the Ghana Chamber of Mines to supply 20 percent of their annual gold production to the Bank of Ghana.
According to data from the Bank of Ghana, the country’s gold reserves had risen to 19.2 metric tonnes by February.
In February this year, the government expanded the programme with a target of accumulating up to 157 metric tonnes of gold by 2028, equivalent to approximately 15 months of import cover.
To achieve this goal, authorities opened discussions with major mining companies, including Newmont, Gold Fields, and China’s Zijin Mining, to increase the volume of gold purchased by the state.
Under the new agreement, large-scale mining firms will sell 30 percent of their gold production to the state-owned Gold Board, popularly known as GoldBod, in dore form.
The government said purchases will be made at a discount of 0.55 percent of the Bank of Ghana’s reference rate, with payments made in Ghanaian cedis.
Officials explained that the agreement is also expected to support Ghana’s ambition of securing London Bullion Market Association (LBMA) accreditation for at least one domestic refinery by 2030.
Gold acquired through the programme will first be refined within Ghana before being transported to an LBMA-certified refinery for final melting and stamping, after which it will be added to the country’s central bank reserves.
GoldBod already purchases the entire output produced by Ghana’s artisanal gold mining sector.
The government believes that expanding its gold reserves will strengthen the country’s ability to withstand external economic shocks while also providing an additional source of foreign exchange through future international gold sales.
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