London Bullion Marketing Association to assist Ghana in establishing new gold refinery for small-scale mining sector

London Bullion Marketing Association to assist Ghana in establishing new gold refinery for small-scale mining sector

Ghana is set to establish a new refinery for the Artisanal Small-Scale Mining (ASM) sector, with the support of the London Bullion Marketing Association (LBMA). The announcement was made by the Deputy Minister for Lands and Natural Resources in charge of mining, George Mireku Duker, during a meeting with LBMA officials at the OECD Forum on Responsible Mineral Supply Chain held in Paris, France on Thursday, April 27, 2023.

The LBMA, which is responsible for setting the standards for the global gold and silver markets, has expressed its willingness to assist Ghana in establishing a certified refinery, which will enable the country to compete internationally. The move is seen as a significant boost for Ghana’s ASM sector, which has been grappling with the challenges of illegal mining, environmental degradation, and poor working conditions.

The meeting between the Deputy Minister and LBMA officials was aimed at reaffirming Ghana’s engagement with the association and its commitment to setting up LBMA-certified refineries in the country. According to Mr. Duker, the meeting was to afford Ghana the opportunity to establish a clear roadmap for getting a certified refinery, and LBMA’s readiness to support the country in this regard is a positive development.

The establishment of a certified refinery is expected to enhance the value chain of the ASM sector in Ghana, by enabling miners to produce gold of a higher quality that meets international standards. The move will also contribute to the formalisation of the ASM sector, which is dominated by informal miners who often work under dangerous conditions and use hazardous chemicals such as mercury in their operations.

Speaking at a panel discussion on exploring domestic drivers for responsible mineral supply chains, Mr. Duker highlighted the Ghanaian government’s efforts in promoting responsible Artisanal Small-Scale Gold Mining (ASGM) and creating alternative livelihoods for illegal miners in resource-rich countries. He stated that traditional authorities, civil society organisations, and the private sector can support governments in promoting responsible ASM, supporting state-sponsored buying schemes of domestic gold and creating alternative livelihoods for illegal miners.

The panel discussion was moderated by Fanny Fremont, Executive Director, Responsible Micah Initiative, and included experts from various fields, including the Central Bank of the Philippines, Datastake, and the Alliance for Responsible Mining.

The move by Ghana to establish a certified refinery for the ASM sector is expected to boost the country’s gold production and contribute to its economic growth. Ghana is Africa’s largest gold producer, and the ASM sector accounts for about 30% of the country’s gold output. However, the sector has been facing challenges, including illegal mining, environmental degradation, and poor working conditions.

The establishment of a certified refinery will also enhance the country’s reputation in the global gold market, by enabling Ghana to produce gold of a higher quality that meets international standards. This move is expected to attract more investors to the country’s gold sector, thereby boosting its economic growth and contributing to the country’s development agenda.

Ghana’s move to establish a certified refinery for the ASM sector is a positive development that is expected to contribute to the formalisation of the sector and enhance its value chain. The move is also expected to boost Ghana’s reputation in the global gold market and contribute to the country’s economic growth. The support of the LBMA in this regard is a significant boost for Ghana’s ASM sector and underscores the importance of international partnerships in promoting responsible mining practices.