BoG purchases 432,358 ounces of gold from Ghana Chamber of Mines
The Bank of Ghana (BoG) has successfully acquired 432,358 ounces of gold from Ghana Chamber of Mines (GCM) members as of mid-December 2023. This accomplishment represents a commendable 84% of the Bank’s targeted gold purchases for the year, aligning with its broader mission to stabilize the local currency, the cedi.
The Domestic Gold Purchase Programme (DGPP), introduced by the government in 2021, has emerged as a pivotal mechanism, granting the BoG the first right of refusal for all gold mined within the nation. This initiative responds to the stark reality that, despite being a prominent global gold producer, the central bank possessed a mere 8.7 tonnes of gold reserves at the close of 2021.
GCM’s President, Joshua Mortoti, underscored the commitment of producing members to contribute to the government’s economic recovery agenda. Notably, this initiative accounts for nearly 15% of GCM members’ planned gold output for 2023, showcasing a collaborative effort between the public and private sectors.
Furthermore, Mr. Mortoti disclosed ongoing efforts within the Chamber to collate members’ planned gold sales for 2024. The subsequent facilitation of bilateral agreements between the BoG and mining companies aims to streamline future transactions and fortify the nation’s gold reserves.
Vice President Dr. Bawumia Mahamudu emphasized the broader implications of the DGPP, asserting that accumulated gold reserves could underpin the country’s future borrowing and currency stability. He additionally highlighted the imperative need for Ghana’s gold refineries to obtain certification from the London Bullion Market Association (LBMA) to bolster the nation’s standing in the global gold value chain.
“The central bank will purchase the gold at world market prices and mining companies will export the portion that is not purchased by BoG. Ultimately, once we accumulate enough gold; future borrowing and our currency can be backed by gold. This will stabilise the cedi long-term.
“We must also deepen our industrialisation through value addition to gold; even though Ghana has two gold refineries, neither has London Bullion Market Association (LBMA) certification. This limits our full participation in the gold value chain. We will urgently work toward LBMA certification for our refineries over the next few years,” he stated.
The Minister of Lands and Natural Resources, Samuel Abu Jinapor, echoed the government’s vision for Ghana to become the mining hub of Africa. He sought continued collaboration with the Chamber on various interventions, including value addition, local content, and community development, aligning with the broader goal of sustainable resource management for the benefit of the Ghanaian populace.
“Together, we will achieve the President’s vision to make Ghana the mining hub of Africa. The ministry remains fully committed to effective and efficient utilisation and management of our country’s natural resources, anchored on transparency, integrity and utmost good faith for the Ghanaian people’s benefit,” he said.
The DGPP stands as a testament to Ghana’s strategic efforts to harness its abundant gold resources, with the BoG playing a pivotal role in building reserves and fostering economic stability in the long term.
