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Gold Miners Ordered to Sell 20% of Refined Bullion to Ghana - BLOOMBERG

NOVEMBER 25, 2022

(Bloomberg) -- Ghana ordered large gold-mining companies to sell 20% of the metal they refine to the nation’s central bank, as the government embarks on a plan to barter bullion for fuel.

The directive will be effective Jan. 1, Minister for Lands and Natural Resources Samuel Jinapor said in a notice posted on Vice President Mahamudu Bawumia’s Facebook page. The government also ordered small-scale miners to sell their gold to the state-owned Precious Minerals Marketing Co.

Ghana is struggling to stem a slide in the cedi, which has dropped 57% this year, making it the world’s worst-performing currency. Bawumia said on Thursday the government was planning to use bullion to buy fuel in an attempt to reduce demand for dollars.

Read: Ghana to Use Gold to Buy Oil Products by 1Q 2023: Vice President

The Bank of Ghana and the government’s marketing arm will buy the gold from companies including Newmont Corp., AngloGold Ashanti Ltd., Gold Fields Ltd. in “cedis at spot price with no discounts,” according to the notice. Ghana is Africa’s second-biggest gold producer. 

AngloGold and Gold Fields didn’t immediately respond to requests for comment.

--With assistance from Felix Njini.

(Updates to add currency of purchase in fourth paragraph.)


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