Ghana Chamber of Mines: Seeks Gold Refining Tax Relief For GoldBod Mandate

• The Ghana Chamber of Mines is urging the government to provide tax and power relief to reduce the cost of local gold refining.
• This call comes as GoldBod mandates that Self-Financing Aggregators refine gold doré in Ghana before export, effective September 1, 2026.
• Unrefined gold doré will no longer be approved for export, with refining costs to be borne by aggregators or their off-takers at GoldBod-approved facilities.
• Dr. Ken Ashigbey, CEO of the Chamber, suggests reviewing taxes, granting preferential access to cheaper hydroelectricity, and leveraging solar investments to lower refinery operating costs.
• The Chamber emphasizes that achieving Ghana's mineral value addition goals requires a collaborative effort between the government and industry to share the financial burden.

The transition to mandatory local refining, while promising, necessitates a shared commitment to reducing the associated processing costs.

The Ghana Chamber of Mines is advocating for significant government intervention to mitigate the financial burden associated with refining gold domestically. Dr. Ken Ashigbey, the Chief Executive Officer of the Chamber, has emphasized the necessity for the government to actively participate in making local gold refining commercially viable. This call comes as Ghana intensifies its efforts to retain a greater share of value from its extensive mineral resources, aligning with a broader national strategy to cease the export of raw gold.

Dr. Ashigbey highlighted that the national drive towards increased local content, while beneficial for the economy, inherently introduces additional operational costs for the industry. He argued that these costs should not be borne exclusively by mining companies and aggregators. Instead, he stressed that a collaborative approach is essential, where all stakeholders, including the government, contribute to fostering a conducive environment for domestic processing. This perspective underscores the Chamber's belief that shared responsibility is key to the success of Ghana's mineral value addition policy.

The urgency of the Chamber's appeal is amplified by recent regulatory changes impacting the gold sector. GoldBod, a key state entity, has issued a directive mandating that Self-Financing Aggregators refine all gold doré within Ghana before it can be exported. This significant policy shift is slated to take effect from September 1, 2026, marking a pivotal moment for the industry. Under the new rules, unrefined gold doré will no longer receive approval for export, fundamentally altering existing trade practices.

Compliance with this GoldBod mandatory local gold refining directive requires that all processing be conducted at a refinery either approved or designated by GoldBod. The financial responsibility for this refining process will fall upon the aggregator or their designated off-taker. This measure forms a crucial component of Ghana's ambitious objective to halt all raw mineral exports by 2030, aiming to maximize in-country beneficiation. Furthermore, GoldBod has been actively engaging with the large-scale mining sector to channel their gold output into local refining facilities and contribute to national reserve accumulation efforts.

A primary focus of the Ghana Chamber of Mines gold refining tax relief proposal centers on alleviating the economic pressures faced by local refiners. Dr. Ashigbey specifically pointed to the existing tax and levy structures as significant contributors to the high cost of operations, suggesting that a comprehensive review by the government is imperative. Discussions regarding potential adjustments to these fiscal policies are reportedly already underway, indicating a recognition of the issue at governmental levels.

Beyond taxation, the cost of power represents another critical challenge for Ghana gold refinery power costs. Dr. Ashigbey identified electricity expenses as a major concern, advocating for specific policy decisions to address this. He proposed that, given the strategic importance of gold refineries to the national economy, they could be granted preferential access to more affordable hydroelectricity. Additionally, he highlighted the potential of proposed solar investments under the government's 24-hour economy initiative, which aims to reduce energy costs to approximately 3 to 4 cents per kilowatt-hour, as a viable solution for lowering operational expenditures. While seeking external support, Dr. Ashigbey also urged private refinery operators to invest in advanced technologies to enhance efficiency and reduce their own production costs. These Ghana mining sector tax incentives and power considerations are vital for the viability of local refining.

Despite the significant challenges, Dr. Ken Ashigbey maintains that the overarching goal of local beneficiation remains highly advantageous for Ghana. He reiterated that achieving this objective successfully hinges on a truly collaborative effort between the government and the industry. The transition to mandatory local refining, while promising, necessitates a shared commitment to reducing the associated processing costs.

The Chamber's CEO underscored that for Ghana to effectively enhance the value derived from its gold resources, a unified approach is indispensable. This means the government must actively engage with the industry to jointly develop strategies that lower the cost of doing business in the local refining sector. Such a partnership is crucial for ensuring the long-term sustainability and competitiveness of Ghana's gold value addition initiatives, ultimately benefiting the national economy.

Legal counsel for gold aggregators and mining companies in Ghana should monitor government responses to the Chamber of Mines' demands for tax and power relief. These potential policy changes will directly impact the cost of compliance with GoldBod's upcoming mandatory local gold refining directive, affecting operational viability and financial planning.

Source: Original reporting via Carbonatix