We’re already subsidising gov’t – Chamber of Mines flags extra cost of Ghana’s local content push

The Ghana Chamber of Mines has cautioned that Ghana's efforts to process and refine gold domestically will entail additional expenses for mining companies, urging the government to share the financial burden of developing local refining capabilities. Dr Ken Ashigbey, CEO of the Chamber, emphasized that while local content and beneficiation are crucial, the associated costs must be tackled through collaboration between the government and industry.

"Before I even get to the time scale, in terms of the issue about the cost, you know, and again, we should all realize the fact that you know, when you want to do this local content, it comes with some cost," he stated. Ashigbey underscored that the government must also contribute to achieving economically viable local refining.

"But again, all of us need to chip in into it. The more we do in this country, and the more we all work together, government needs to put its skin in the game." He highlighted that taxes and levies imposed on the mining sector would necessitate reevaluation by the government. "The issue, of course, is that the taxes and the levies that are on the government would have to look at that, and I know that conversation is going on."

Additionally, private refinery operators must invest in technology to reduce refining expenses. "The issues of these private sector people who own the refineries in terms of the technology that they need to put in to be able to ensure that they reduce their cost, it’s something that we need to do." Energy costs, particularly power, pose another concern, potentially requiring policy adjustments.

Dr Ashigbey suggested that the significance of gold refining might warrant special consideration in Ghana's energy mix. "Because of the criticality of the refinery, is it possible that in the energy mix, we will give them, you know, a lot more of the hydro that is cheaper?" He also noted that proposed solar investments in the 24-hour economy could help alleviate energy costs.

"The conversations, the 24-hour economy is thinking of putting together some solar, you know, large solar plants, you know, and which will reduce the cost of energy to around 3 to 4 cents per kilowatt-hour." These remarks follow Ghana's intensified efforts to retain more value from its gold prior to export. The government has directed Self-Financing Aggregators to refine gold doré in Ghana before exporting it from September 1, 2026.

The cost of this initiative will be borne by the aggregator or its approved Offtaker. Ghana aims to eliminate raw mineral exports by 2030, with the Chamber of Mines viewing the broader goal of beneficiation positively but stressing the importance of shared responsibility. "So I think that this is the issue of beneficiation is a good thing for us, and, you know, all of us need to chip in," Ashigbey affirmed.

"But it has to be done collaboratively. Government need to embrace industry to all work together so that we all can reduce the cost of doing this, because we’re looking at the issues of value." He acknowledged that mining companies are already facing added financial pressures under the current circumstances. "So there's some pain again, like the large scale, for example, the GANRAP, we are starting with a 0.55 when we are doing a weighted average of 0.098.

So that’s some extra subsidisation that we’re doing for government." Ashigbey stressed the need for joint efforts between the government and investors to alleviate the policy's costs. "But we all need to work together as a collective, as a country, as investors working together with government to reduce the cost."