Gov't secures deal with 9 more gold miners to buy 20% of their output

Ghana has made a deal with nine mining companies. The agreement allows the government to buy 20% of their gold production. This aims to boost the country's gold reserves and stabilize its currency.

In 2022, Ghana signed a similar agreement with major companies. These included Gold Fields, Newmont, AngloGold Ashanti, and Asanko Mining. Purchases are settled in the Ghanaian cedi currency.

The Bank of Ghana's gold holdings increased significantly. They rose to 30.8 metric tons in February from 8.77 tons in 2022. This helped gross reserves reach $9.4 billion this year.

The new deal involves companies not part of the previous arrangement. GoldBod, a government body, announced this on X. Their goal is to streamline gold purchases from small-scale miners and reduce smuggling.

The nine companies involved are Golden Team Mining Company Limited, Akroma Gold Limited, Adamus Resources Limited, Cardinal Namdini Mining Limited, Goldstone Akrokeri Limited, Earl International Group (GH) Limited, Xtra Gold Mining Limited, Prestea Sankofa Gold Limited, and Gan He Mining Resource Development Limited.

Gold mining countries are seeking more value as prices rise. Prices have increased by 29% this year due to tariffs and geopolitical uncertainty.

Under the new agreement, mining companies will deliver 20% of exported gold to GoldBod as doré bars. This represents a significant step for Ghana's gold resources.

The mining companies will be paid in Ghanaian cedis at a discount of one percent from the LBMA spot price.

These nine miners produce about 200 kilograms of gold each month, according to GoldBod's spokesperson.