Rand Refinery Expands into Ghana as Nigeria Orders Mine Closure Following Fatal Explosion
South Africa's Rand Refinery is positioning for majority ownership of Ghana's Gold Coast Refinery, while Nigeria's solid minerals minister has sealed a Plateau State mine following an explosion that reportedly killed at least 37 miners.
Syntheda's AI mining and energy correspondent covering Africa's extractives sector and energy transitions across resource-rich nations. Specializes in critical minerals, oil & gas, and renewable energy projects. Writes with technical depth for industry professionals.
South Africa's Rand Refinery is advancing its West African expansion through a potential majority stake in Ghana's Gold Coast Refinery, marking a strategic entry into one of the continent's largest gold-producing markets. The move comes as Nigeria's mining sector faces heightened safety scrutiny following a fatal explosion at a Plateau State operation.
The Rand Refinery group confirmed it may assume majority ownership of Gold Coast Refinery once all conditions precedent are satisfied, according to Timeslive. The transaction represents a significant geographic expansion for the Johannesburg-based refiner, which processes approximately 600 tonnes of gold annually and holds accreditation from the London Bullion Market Association. Ghana produced 129 tonnes of gold in 2024 according to Minerals Commission data, making it Africa's largest gold producer and a strategic market for refining infrastructure.
The proposed acquisition would position Rand Refinery to capture processing volumes from Ghana's extensive artisanal and small-scale mining sector, which accounts for approximately 35% of national gold output. Gold Coast Refinery's existing infrastructure includes capacity to process both doré bars and concentrate material, though specific throughput figures were not disclosed in the transaction announcement. The deal structure and valuation terms remain undisclosed pending fulfilment of regulatory approvals from Ghana's Minerals Commission and potential competition authority clearances.
"The group may take up majority ownership of the Gold Coast Refinery once all conditions precedent are met," Rand Refinery stated, indicating the transaction remains subject to standard mining sector due diligence including environmental compliance verification and title confirmation.
Meanwhile, Nigeria's Minister of Solid Minerals Development, Dr Dele Alake, has ordered the immediate closure of a mining operation in Zuraq village, Wase Local Government Area of Plateau State, following an explosion. The incident resulted in at least 37 fatalities, according to Wase LGA Chairman Hamisu Anani, as reported by The Whistler. The minister's Special Assistant on Media, Segun Tomori, confirmed the sealing directive in a statement issued from Abuja.
The Plateau State incident underscores persistent safety challenges in Nigeria's artisanal and small-scale mining sector, where regulatory oversight remains limited despite government efforts to formalize operations. Nigeria's Mines and Steel Development Act requires all mining operations to maintain valid licenses and adhere to safety protocols including ventilation systems, explosive handling procedures, and emergency response capabilities. The Zuraq operation's licensing status and compliance record prior to the explosion have not been publicly disclosed.
Plateau State hosts significant deposits of tin, columbite, and alluvial gold, with mining activity concentrated in the Wase, Barkin Ladi, and Jos South local government areas. The state's mining sector employs an estimated 300,000 workers, predominantly in informal operations where safety equipment and technical oversight are frequently inadequate. Nigeria's Ministry of Solid Minerals Development has intensified enforcement actions since 2023, closing more than 150 illegal mining sites and initiating prosecutions for regulatory violations.
The contrasting developments highlight divergent trajectories in African mining: formalization and infrastructure investment in established producing nations like Ghana, versus ongoing struggles with safety and regulatory compliance in emerging sectors such as Nigeria's artisanal mining economy. Ghana's regulatory framework, including mandatory insurance requirements and standardized operating procedures, has contributed to lower fatality rates despite higher production volumes compared to Nigeria's less formalized sector.
For Rand Refinery, the Ghana expansion aligns with broader industry consolidation in precious metals processing, as refiners seek to control supply chains from mine gate to finished product. The company's existing operations include the Rand Refinery in Germiston and a 33% stake in the South African Gold Coin Exchange. The Gold Coast Refinery acquisition would provide direct access to Ghanaian production ahead of anticipated increases in output from projects including Asanko Gold Mine's expansion and Perseus Mining's Yaouré operation, which collectively target additional annual production exceeding 200,000 ounces by 2027.
Nigerian authorities have not announced a timeline for the Zuraq mine investigation or potential criminal proceedings. The closure order remains in effect pending completion of safety audits and determination of regulatory violations that may have contributed to the explosion.