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 plans to process and refine gold locally will increase expenses for mining firms, urging the government to share the financial load for establishing local refining capabilities. The Chamber's Chief Executive Officer, Dr Ken Ashigbey, emphasized that while local content and beneficiation are crucial, the associated costs must be tackled through cooperation between the government and the industry.

He clarified that the cost implications of local content must be considered, stating, "Before I even get to the time scale, in terms of the issue about the cost, you know, and again, we should all realise the fact that you know, when you want to do this local content, it comes with some cost." Ashigbey stressed that the government must also contribute to making local refining economically viable.

He pointed out that taxes and levies imposed on the mining sector need reconsideration, noting that a conversation on this matter is ongoing. He also highlighted the need for private refinery operators to invest in technology to cut refining costs. Energy costs, including power expenses, are another area of concern, possibly requiring policy changes.

Ashigbey suggested that the significance of gold refining might warrant special consideration in Ghana's energy sector, potentially relying more on cheaper hydroelectric power. He also touched upon the potential role of solar investments in the 24-hour economy in reducing energy costs to around 3 to 4 cents per kilowatt-hour. His remarks follow Ghana's push to retain more value from gold before export.

The government has directed Self-Financing Aggregators to refine gold doré in Ghana before export from September 1, 2026, with the cost to be borne by the aggregator or its approved Offtaker. This directive is part of Ghana's broader goal of ending raw mineral exports by 2030, with GoldBod securing an agreement to purchase 30% of large-scale mining companies' gold output locally and refine it domestically.

Ashigbey believes the objective of beneficiation is beneficial but warns against disproportionately burdening industry. He reiterated that mining companies already face an extra financial burden, as evidenced by the weighted average of 0.098 for GANRAP. He stressed the importance of a collaborative approach between the government and investors to alleviate the policy's cost.