MIIF's gold trade desk attract US$1.02 billion in 12 months

The Minerals Income Investment Fund (MIIF) has attracted US$1.02 billion in revenue within 12 months through its gold trade desk.

The initiative is designed to formalise small-scale mining, ensure the traceability of gold and provide a market for locally produced gold.

This effort aligns with MIIF’s broader transformation agenda, which seeks to maximise local participation and economic benefits from the country’s mineral wealth.

Edward Nana Yaw Koranteng, Chief Executive Officer of MIIF, explained during a media engagement that the gold trade desk is pivotal to integrating Ghana’s small-scale mining sector into the formal economy.

“The gold dory from the small-scale mining companies is sold to LBMA-certified refineries, ensuring global recognition as traceable gold. This not only adds a premium to Ghana’s gold but also helps curb the exploitation that has plagued the sector,” he stated.

Small-scale mining contributes up to 40 percent of Ghana’s total gold output and employs more people than the cocoa sector. Despite its importance, the sector has long been overshadowed by challenges such as illegal mining, lack of capital, and poor governance structures. MIIF’s gold trade desk works in tandem with its Small-Scale Mining Incubation Program (SSMIP) to address these issues.

The SSMIP supports licensed small-scale miners with corporate governance training, environmentally sustainable practices, and access to machinery in exchange for equity stakes.

Mr. Koranteng stressed, “The lack of capital and formal structures leaves miners vulnerable to exploitation, where foreign entities purchase gold at discounted rates without regard for environmental or ethical considerations.”

By providing miners a reliable market through the gold trade desk, MIIF aims to reduce capital flight, formalise the sector, and enhance its contribution to the national economy. According to the CEO, Ghana loses approximately US$2 billion annually from unregulated small-scale mining activities.

“Proper formalisation will not only plug these revenue leaks but also quadruple the sector’s economic impact,” he added.

In addition to stabilising the small-scale mining sector, the gold trade desk plays a critical role in supporting Ghana’s broader economy. Over the past year, the initiative has supplied US$600 million to Bulk Distribution Companies (BDCs) to facilitate the importation of petroleum products.

Mr. Koranteng noted that this support has helped stabilise the cedi and mitigate extreme foreign exchange volatility.

“The trade desk’s activities provide ample evidence of how the strategic management of our mineral resources can impact the economy on a 360-degree scale,” Mr. Koranteng stated.

He highlighted that although the desk recorded some forex-related losses in September, it has consistently achieved returns of approximately 8% on the dollar and 24% on the cedi.

From trade desk to ETF

The gold trade desk is part of MIIF’s comprehensive strategy to ensure that Ghanaians benefit directly from the country’s vast mineral wealth. This includes plans to launch a gold-backed Exchange Traded Fund (ETF), allowing ordinary citizens to invest in gold.

“Through the ETF, Ghanaians will be able to own a piece of gold and enjoy returns indexed to the dollar,” the CEO explained.

Though the ETF’s launch has been delayed due to regulatory challenges, MIIF is optimistic about its potential to complement the gold trade desk and further democratise access to Ghana’s gold wealth.

Bubune Kofi Sorpkor, MIIF’s Chief Investment Officer, said, “Our efforts extend to the micro level, ensuring that even small-scale miners benefit from the formal economy,” Sorpkor said.

He added that MIIF’s collaboration with the Ghana Stock Exchange (GSE) aims to list junior mining companies on the exchange, providing an opportunity for Ghanaians to invest in the sector.

Koranteng also highlighted the importance of traceability in enhancing Ghana’s gold value.

“Gold that is traceable and mined under ESG principles commands a higher premium. This aligns with global best practices and ensures that our gold remains competitive in international markets,” he said.

MIIF’s traceability mechanisms are designed to prevent environmental degradation and unethical practices, addressing criticisms that have long marred the small-scale mining sector.

MIIF is planning a fully integrated ecosystem where the gold trade desk feeds into the SSMIP, which in turn supports the ETF. This interconnected approach aims to maximise the sector’s contribution to Ghana’s economy while empowering local stakeholders.

“Imagine a future where small-scale miners become well-run junior mining companies, listed on the Ghana Stock Exchange, and directly contributing to the formal economy. The ripple effects would be transformative,” Mr. Koranteng said.

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