Government and Miners Unite to Bolster Gold Reserve and Drive Economic

Government, Miners Unite to Bolster Gold Reserve

Government has reached an agreement with Ghana's large-scale mining companies to implement the Ghana Accelerated National Reserve Accumulation Programme (GANRAP), under which mining companies will sell 30 percent of their gold output to the Ghana Gold Board (GoldBod) for local processing and refining before the gold is added to the country's reserves. The agreement was formalized through a Memorandum of Understanding involving the Ministry of Finance, the Ministry of Lands and Natural Resources, GoldBod, the Bank of Ghana, and the Ghana Chamber of Mines, representing the participating large-scale mining companies.

Government and Miners Join Forces to Strengthen Gold Reserves

The agreement marks the successful conclusion of negotiations between government and the mining industry following the introduction of GANRAP. Finance Minister Dr. Cassiel Ato Forson said the agreement would allow a portion of gold produced by large-scale mining companies to be retained within Ghana, refined locally, and transferred to the Bank of Ghana as part of efforts to strengthen the country's international reserves. "Today's signing of the memorandum of understanding signifies that we have successfully come to an understanding, a mutual understanding, that that policy will be implemented effective the date of signing," he explained.

Mining Companies Support Policy to Build Stronger Reserves

Chief Executive Officer of the Ghana Chamber of Mines, Ing. Dr. Kenneth Ashigbey, said the mining industry supported the policy, arguing that a stable macroeconomic environment was essential for the continued operation and growth of the sector. He said the industry supported the objective of building a 15-month reserve buffer to help Ghana withstand external economic shocks. However, he urged government to consider making the policy more incentive-driven to ensure that local beneficiation remains sustainable beyond the current programme. "We need to look at GANRAP beyond even 2028, and the way to do that is to make it an incentive-based system," Dr. Ashigbey said.

Implementing GANRAP: Challenges Ahead

Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, welcomed the agreement and pledged continued cooperation between his ministry, the Chamber of Mines, and its member companies as the policy moves into implementation. He acknowledged that GANRAP is a new programme and said the government would need to remain flexible in addressing challenges that may emerge during the implementation process. "The Ministry of Lands and Natural Resources will continue to cooperate with you and work with the Chamber and their members in going forward," he said. Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, commended the Chamber of Mines and its member companies for supporting the programme and acknowledged the roles played by GoldBod, the Ministry of Finance, and the Ministry of Lands and Natural Resources in bringing the stakeholders together.

Building a Stronger Economy

The agreement is part of the government's efforts to build stronger foreign exchange reserves using Ghana's gold resources rather than relying heavily on external borrowing. The GANRAP policy is designed to leverage gold to strengthen Ghana's external reserves and build a substantial buffer against external shocks. The government's policy framework targets the accumulation of reserves equivalent to 15 months of import cover over the medium term. By implementing GANRAP, the government aims to create a more stable economic environment, which will benefit not only the mining industry but also the broader economy.

Source: JOY