Financial economist Dr. Peter Tekper has welcomed Ghana’s mandatory local refining of gold doré before export, but cautioned against excessive refining costs that could place additional pressure on the Ghana Gold Board (GoldBod).
Speaking in an interview, Dr. Tekper said local refining would help Ghana retain more economic value from its gold resources while creating jobs and expanding the capacity of domestic refineries.
“Refining the gold before export is a very good one for the economy because of the value it brings.”
He explained that exporting gold in its raw doré form means much of the additional economic value generated through refining is realised outside Ghana.
Dr. Tekper, however, said the government must carefully assess the cost of refining to ensure the policy does not undermine the financial position 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.
“When it happens like that, then you are going to necessarily increase the cost of the institution, which is GoldBod, and that is going to affect the profitability of the institution,” he said.
He therefore urged policymakers to pay close attention to the cost structure of the local refining programme while pursuing the broader objective of retaining more value from Ghana’s gold exports.
