Ghana Gold: Real Value Addition is Jewelry production not refining – Bright Simons tells Govt.

Vice President of IMANI Africa, Bright Simons, has criticized the Akufo-Addo-Bawumia government over its new move of establishing a new gold refinery. He argued that true value addition lies in jewelry production rather than refining.

His comments followed the recent commissioning of a new refinery by Vice President Dr. Mahamudu Bawumia, which according to Simons will not address the underlying issues facing the gold sector.

In a post on his X platform, Simons expressed skepticism regarding the government’s claims of job creation and economic strengthening through the new refinery.

He pointed out that similar promises have been made in the past with the launch of multiple refineries, including Asap Vasa Company Limited in 2013, Sahara Royal Gold Refinery in 2015, and Gold Coast Refinery in 2016, yet the country continues to struggle with achieving significant value addition in gold production.

He highlighted that gold refining is a low-margin business, with one of the world’s largest refineries in Australia operating at a mere 0.17% profit margin. He noted that local refineries in Ghana often rely on small-scale miners, which limits their profitability and leads to issues such as environmental concerns and low-quality dore gold.

Additionally, he emphasized that small-scale miners prefer to sell to higher-volume refineries in countries like India and Dubai, where they can obtain better prices.

Simons concluded that instead of prioritizing public relations, the government should focus on addressing the systemic challenges within the gold refining industry. 

He reiterated that the real potential for value addition in Ghana’s gold sector lies in the production of jewelry, which aligns with the original purpose of the Precious Minerals Marketing Company (PMMC) established in Ghana.

By Derick Botsyoe || ghananewsonline.com.gh