The Bank of Ghana has taken over the Damang Gold Mine Limited, with the first batch of gold being delivered to the central bank. The gold, weighing 110kg, was produced by the mine under the new ownership structure.
Ghana's Gold Purchase Program
Ghana, Africa's biggest gold-producing nation, has been working to increase its gold reserves by purchasing a larger share of gold from multinational mining companies. According to multiple reports, the Bank of Ghana wants to increase the current 20% share of gold output sold to the central bank to 30%.
History of Ghana's Gold Purchase Program
Ghana launched its gold purchase program in 2022, with an initial agreement with miners to supply 20% of their annual output to the central bank. The program has seen the Bank of Ghana's gold holdings rise to 19.2 metric tons in February, according to data from the central bank.
Bank of Ghana's New Deal with Miners
The central bank has struck a deal with its large-scale mining companies to purchase 30% of their gold output from July 1. This new deal will see the Bank of Ghana buying a larger share of gold from the mines, with the aim of boosting its reserves.
Ghana Gold Board's New Role
The Ghana Gold Board has been given the sole authority for the purchase and sale of gold produced by small-scale miners, as well as a portion of gold produced by large-scale mining companies. This move is in line with the pre-emption rights under section 7 of the Minerals and Mining Act, 2006.
Impact of the Deal
The deal between the Bank of Ghana and the large-scale mining companies is expected to have a significant impact on the country's gold reserves. With the new deal, Ghana is looking to increase its gold reserves and reduce its reliance on foreign gold imports.
The Bank of Ghana's new deal with the large-scale mining companies is set to come into effect from July 1, with the central bank looking to increase its gold reserves and reduce its reliance on foreign gold imports.
Source: 3News
