Local gold refining good for economy but costs must be controlled – Economist

Financial economist Dr. Peter Tekper has praised Ghana's policy of mandating local refining of gold doré before exporting it, but cautioned against excessive costs that could strain the Ghana Gold Board (GoldBod). Speaking to JoyNews, Dr. Tekper stated that local refining would help Ghana keep more economic value from its gold resources while generating jobs and boosting domestic refining capacity.

"Refining the gold before export is a very good one for the economy because of the value it brings," he said. However, Dr. Tekper argued that the government must carefully examine the refining cost to prevent the policy from compromising the financial stability of GoldBod. "Where we have to tread cautiously is to ensure that the cost of this refinery is not going to be a burden on the balance sheet or on the cost analysis of the buyer," he emphasized.

Excessive refining costs could lead to higher costs for GoldBod, negatively impacting its profitability, he warned. Dr. Tekper therefore advised policymakers to closely monitor the cost structure of the local refining program while pursuing the goal of retaining more value from Ghana's gold exports.