Gold For Oil Policy Takes Off In January- Bawumia

The Vice President of Ghana, Dr. Mahamadu Bawumia has disclosed Ghana has finalized deals with the arrangements for the operationalization of the Gold-for-Oil policy.

He noted the first oil products under the policy will be delivered January 2023.

Dr Bawumia was excited to announce that Government of Ghana has concluded the arrangements for the operationalization of the Gold for Oil policy.

“Consequently, the first oil products under the policy will be delivered next month (January 2023). My thanks to the Minister for Energy, Minister for Lands and Natural Resources, Governor of the Bank of Ghana, the Chamber of Mines, PMMC and BOST for their leadership in the operationalization of the Government’s Gold for Oil Policy,” he revealed on his Facebook wall, Thursday December 22, 2022.

Newmont emerges the first gold mining company in Ghana under the Domestic Gold Purchasing Programme to sell gold to the Bank of Ghana (BoG); following the procurement of 26,000 ounces of gold between May and November this year by the central bank.

The Director of Communications for Newmont Africa, David Johnson, indicated, 3,500 ounces were procured by the central bank in May while the remaining 22,500 ounces were bought between October and November 2022.

Mr Johnson added at a Media conference in Sunyani, Newmont is the first of miners in Ghana to respect the directives from the central bank.

In June, this year, the apex bank’s domestic gold purchasing programme was launched with the primary objective of increasing its gold reserves.

The Economic Management Team led by Dr Mahamudu Bawumia, the Bank of Ghana, the Ministry of Lands and Natural Resources, the Minerals Commission, the Precious Minerals Marketing Company (PMMC) and the Ghana Chamber of Mines after a series of consultations in August decided that the central bank will buy 20% of all refined gold in cedis at a spot price with no discounts.

The policy enables Bank of Ghana to purchase domestically-produced gold from selected gold aggregators and mining firms, and pay in local currency at the prevailing market price.

Through it, the bank requires an estimated amount of 10,000oz of gold per annum from members of the Chamber of Mines over the next five years.

It seeks to improve and sustain Ghana’s foreign exchange reserves and to strengthen the country’s balance of payments.

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