Bright Simons, Vice President for IMANI Centre for Policy and Education, has raised solemn concerns about the recent launch of what the Ghanaian government has touted as the nation's first commercial gold refinery.
This comes after the Vice President and the 2024 flagbearer of the New Patriotic Party (NPP), Dr Mahamudu Bawumia, inaugurated Royal Gold Ghana Limited gold refinery aimed at enhancing value addition in Ghana's mining sector.
At the ceremony, the government heralded the facility as a game-changer for the country, signaling the end of raw gold exports and the beginning of a new era of value addition.
However, the vice president of the Think tank firm has pointed out that this narrative is misleading, as several commercial refineries have already been operating in Ghana for years.
Simons, in a 'developing write-up' on the Imani Africa website, highlighted that the newly launched Royal Ghana Gold Refinery is not even the largest or most sophisticated refinery in the country.
According to him, the Gold Coast Refinery, established in 2016, has a greater refining capacity and is already recognized for producing standardized gold bars in line with international standards.
He added that other refineries like Asap Vasa and Sahara Royal Gold have also been in operation for years, making the government's claim of a "first" dubious at best.
The timing of the launch, just months before Ghana's general elections, has fueled speculation that the event was more about political optics than genuine economic advancement.
Simons suggests that the government is using the refinery's launch to create a feel-good narrative for voters, distracting from the underlying issues facing the gold refining sector.
He also questions why the government has chosen to invest in a refinery that is smaller and less advanced than existing ones, and whether political motivations are at play.
Further scrutiny reveals even more troubling aspects of the Royal Ghana Gold Refinery's operations.
IMAMi Africa discovered that the majority shareholder, Rosy Royal Minerals Limited, a company based in India, lacks the financial stability and expertise necessary for such a significant project.
Simons points out that Rosy Royal has no track record in gold refining, raising questions about the true ownership and financial backing of the refinery.
In conclusion, Simons argues that the government's celebratory tone and the international press coverage surrounding the launch of the Royal Ghana Gold Refinery are part of a broader pattern of state-driven enchantment.
He warned that this kind of misleading PR can obscure the real challenges facing Ghana's gold refining industry and calls for a closer examination of the commercial relations and objectives behind this high-profile project.
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The government heralded the facility as a game-changer for the country