GoldHeadline

Ghana orders miners to sell 20% of refined gold to central bank

2 Mins read

Ghana orders miners to sell 20% of refined gold to central bank

Ghana has ordered all large-scale mining companies to sell 20% of their entire stock of refined gold at their refineries to the Bank of Ghana from Jan. 1, 2023, Vice-President Mahamudu Bawumia said on Facebook on Friday.

Ghana’s government is planning a new policy where gold rather than US dollar reserves will be used to buy oil products. The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.

“The Bank of Ghana and the Precious Minerals Marketing Company (PMMC) will coordinate with the large-scale mining companies to ensure compliance with this directive,” the vice-president said.

“The gold to be purchased by the Bank of Ghana and the PMMC will be in cedis at spot price with no discounts,” he added.

Community mining schemes and licensed small-scale miners will also have to sell gold to the government, Bawumia said, without specifying how much of their reserves would be affected.

Bank of Ghana communications officer Sam Opoku said he could not confirm or deny whether Bawumia’s order was being considered.

A spokesperson for AngloGold Ashanti Ltd said via email it had not yet received a formal directive on its gold reserves but looked forward to studying and engaging with the government once it does.

Gold Fields said neither the Ghana Chamber of Mines nor its Gold Fields Ghana unit had been formally approached on Bawumia’s plan and it could not comment, though it added that it and other miners had already agreed to a gold purchasing program with the Bank of Ghana.

See also  Gold bounces above $1 800 after US Inflation Data

“We have commenced with this program and will in total sell 15,000 oz to the Bank this year. Next year’s amount is still being finalized with the authorities,” a Gold Fields spokesperson said, referring to the company’s amount for this year under the program.

Newmont Corp, Galiano Gold Inc and Asante Gold Corp, which also have gold mines in Ghana, did not immediately respond to requests for comment.

An International Monetary Fund spokesperson did not immediately respond to a request for comment. Ghana is negotiating a relief package with the IMF as it faces its worst economic crisis in a generation.

Ghana produces crude oil but has relied on imports of refined oil products since its only refinery shut down after an explosion in 2017. It has seen its cedi currency plummet more than 40% against the US dollar this year.

 

Source: Mining.com

Related posts
Headline

Sahara Solace Triumphs Again! Crowned Liqueur of the Year 2023 at Kempinski Hotel

2 Mins read
Sahara Solace Triumphs Again! Crowned Liqueur of the Year 2023 at Kempinski Hotel In the realm of liqueurs, one name consistently rises…
Banking and FinanceBusinessHeadline

World Bank's Ambitious $35 Billion Plan to Bring Electricity to 300 Million Africans

1 Mins read
World Bank’s Ambitious $35 Billion Plan to Bring Electricity to 300 Million Africans The World Bank Group plans to connect 300 million…
AgribusinessagricultureCocoacommodityHeadline

Ghana's Cocoa Farmers Struggle with Low Profits Despite Soaring Cocoa Prices

5 Mins read
Ghana’s Cocoa Farmers Struggle with Low Profits Despite Soaring Cocoa Prices In the Afigya Kwabre district of Ghana’s Ashanti region, people like…

Leave a Reply

Your email address will not be published. Required fields are marked *