A race to refine gold in Africa... and Guinea consolidates its position
Guinea's Minister of Mines has his eye on the UAE's experience.
Written by Ziad Abdel Fattah:
Seeking Guinea To consolidate its position as a regional gold refining hub in West Africa, as part of a strategy aimed at maximizing the added value of mineral resources and reducing the export of raw gold, thus joining a rising wave of African countries seeking to retain a larger share of the precious metal's revenues.
Guinea’s Minister of Mines, Bouna Sylla, said that his country has a vision to transform Guinea into a regional gold refining hub, stressing that having its own refinery in West Africa would not be a problem, because the success of refineries will be determined by their competitiveness and economic factors, not by political considerations.
The move comes days after Guinean President Mamadi Doumbouya banned the export of raw gold with immediate effect, as part of a government plan aimed at processing gold locally and increasing the sector's contribution to the national economy.
Read more: Ghana increases its gold purchases to 30% to bolster reserves
The Minister of Mines explained that Guinea has established a new refinery that is among the largest in the African continent, and has the capacity to process local gold production in addition to the production of West African countries.
The refinery cost $30 million
For his part, Bangali Steve Touré, Vice President of the Guinea Mining Investment Fund, revealed that the project cost about $30 million, and that the refinery will start with a production capacity of up to 530 tons per year, rising to 733 tons when fully operational, with expectations of starting commercial operation during July after the completion of final approvals.
The move comes at a time when West African countries, led by Ghana, the continent's largest gold producer, along with Mali and Burkina Faso, are racing to establish local gold refining centers with the aim of boosting added value and increasing economic returns.
West Africa's gold production is projected to reach 11 million ounces by 2025.
According to industry estimates, gold production in West Africa reached about 11 million ounces during 2025, while Guinea alone produced about 2.32 million ounces during the past year, with an estimated value of about $7 billion.
Silla pointed out that his country currently retains less than 1% of the economic value of its gold production, due to exporting the raw material abroad for refining operations.
He added that the goal is not limited to increasing revenues or creating job opportunities, but extends to building an integrated value chain within the country, citing the experience of the United Arab Emirates, which has become a global center for gold refining despite not being a gold-producing country.
Preparing a decree to encourage local refining
Officials confirmed that the government is currently working on a new decree to encourage local refining, along with implementing reforms to regulate artisanal mining and improve gold production tracking systems by 2026.
They pointed out that the refinery project, which is being run as a public-private partnership, is part of a broader strategy aimed at developing downstream industries in the mining sector, similar to what Guinea is implementing in the bauxite industry, thereby enhancing the added value of natural resources and supporting economic growth.
