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Ghana signs agreement with nine additional gold mines to purchase 20% of their output

A government agency announced on Wednesday that Ghana had reached an agreement with nine additional mining companies for the purchase of 20% of their production. The deal is part of a larger gold purchase program to increase Ghana's gold reserves as well as stabilize its currency.

In 2022, the Central Bank of Ghana signed an agreement to buy 20% of annual production from Gold Fields, Newmont, AngloGold Ashanti and Asanko Mining, members of an industry group including Gold Fields. The central bank of Ghana settles all purchases in Ghanaian cedis.

Bank of Ghana gold reserves rose from 8.77 tons to 30.8 tons in February, helping it to reach $9.4 billion in gross reserves this year.

According to a GoldBod statement posted on X, the new agreement covers mining companies that do not participate in the central banks' arrangement. GoldBod is a government agency set up to increase small-scale miner earnings and reduce the impact smuggling.

Golden Team Mining Company Limited is one of the companies. Others include Akroma Gold Limited. Cardinal Namdini Mining Limited. Goldstone Akrokeri Limited. Earl International Group Limited. Xtra Gold Mining Limited. Prestea Sankofa Gold Limited.

The price of gold has risen 29% in the past year due to tariffs imposed by President Donald Trump and geopolitical uncertainties.

The GoldBod said that the mining companies agreed to deliver to them 20% of all gold they intend to export from the country in the form dore bars.

This agreement is a major step towards maximising the national benefits of Ghana's gold reserves.

The payment will be made in Ghanaian Cedis at a discount of one percent on the London Bullion Market Association's (LBMA) current spot price.

GoldBod spokesperson said that nine gold miners produced approximately 200 kilograms per month. (Reporting and writing by Christian Akorlie, Maxwell Akalaare Adombila, Editing by Ayen Bior and Ros Russel)

(source: Reuters)