Ghana to Purchase 30% of Large Miners' Gold from July as Part of Reserve-Building Drive

New Gold Purchase Agreement Targets Reserve Growth

Ghana's government has secured a landmark agreement with the country's large-scale mining operators to purchase 30% of their gold output beginning 1 July. The deal, negotiated through the Ghana Chamber of Mines, represents a significant expansion of the nation's existing gold acquisition programme and forms part of efforts to strengthen foreign currency reserves whilst developing domestic refining infrastructure.

The agreement involves major mining firms including Newmont, Gold Fields, and China's Zijin Mining. Gold will be supplied to the state entity GoldBod in dore form—semi-refined bullion—at a discount of 0.55% against the Bank of Ghana's reference rate, with payments made in Ghanaian cedis. This builds on an earlier 2022 programme under which large miners agreed to supply 20% of annual output, which has grown the central bank's holdings to 19.2 metric tons as of February 2024.

Developing Local Refining Capacity

A key objective of the expanded scheme is to establish Ghana's first London Bullion Market Association (LBMA)-accredited domestic refinery by 2030. Gold purchased under the programme will initially be refined locally before being sent to an international LBMA refinery for final processing and stamping. This approach aims to build technical expertise and create value-addition opportunities within Ghana's mining sector.

The government has set an ambitious target to accumulate 157 metric tons of gold reserves—equivalent to 15 months of import cover—by 2028. Increased reserves provide crucial protection against external economic shocks and can be sold on international markets to generate critical dollar income for the economy.