MIIF aims to make mining first pillar of Ghanaian economy – CEO reveals

The Chief Executive Officer of the Minerals Income Investment Fund (MIIF) Edward Nana Yaw Koranteng has stated that MIIF is positioning mining as the cornerstone of Ghana's economy.

Speaking at the second MIIF Stakeholder Forum on October 15, 2024, the CEO outlined the organization’s mission to make mining the first pillar of Ghana’s economy through strategic investments and initiatives that drive value addition, equity growth, and localization within the mining sector.

The forum, themed “Minerals Value Addition and Value Chain Development,” brought together government officials, industry leaders, civil society organizations, and media representatives to discuss how MIIF can leverage its mineral wealth fund to enhance Ghana's overall economic development.

“The objective of MIIF as charged by the President, Nana Addo Dankwa Akuffo Addo is to create sustainable generational wealth for Ghanaians.

“Our role therefore at MIIF is not only in funding or taking equity positions in mines. We ply towards the vision of creating a fully-fledged mining industry and for mining to be the first pillar of the economy.

“Our investment covers every single facet of the mining value delivery chain. This includes investing in capacity building, capital markets, commodity trading, research and development. Ladies and gentlemen, I thank you for your attention and please let the conversations begin,” Koranteng said.

He also highlighted MIIF’s three-pronged mandate, managing mineral royalties on behalf of the government, overseeing the state’s equity in large-scale mines, and investing royalties transparently for the benefit of Ghanaians.

He detailed several key investments aimed at advancing Ghana’s mining sector:

According to him, a significant investment in gold production assets including Bibiani and Chirano mines, with Ghanaian ownership reaching 45%, marking a milestone for local equity in large-scale mining.

He explained that this initiative is aimed at supporting mining-related services and aligns with the government’s local content policy.

“$40 million investment in Asante Gold Corporation, a gold exploration and production company trading on the Canadian, Frankfurt, and Ghana stock exchanges with ownership of the Bibiani, Chirano (formerly Kinross), and the yet-to-produce Kubi mine.

“This investment with additional Ghanaian investments, Government carried interest pushes Ghanaian interest to a significant 45% making it the only major large-scale mine with such significant Ghanaian interests.

“We have concluded a GH¢25-million-cedi investment in the Injaro Venture Capital Trust Fund (a Private Equity fund) as a conduit to support the funding of mining support services in line with the Government of Ghana’s local content policy,” he added.

Koranteng also revealed MIIF's plans to launch a Gold Exchange Traded Fund (ETF) on the Ghana Stock Exchange by 2025 and collaborate with the University of Mines and Technology (UMAT) on research and capacity-building projects, including a $32 million technical training center and mining museum.

The Deputy Minister of Lands and Natural Resources, Mireku Duker, emphasised the importance of value addition during his speech.

He pointed out that Ghana often exports raw minerals, creating economic imbalances.

"The way to optimize the benefits would be to maximize the extent to which the value chain is internalized," he said.

He urged MIIF to explore additional value-addition avenues and help develop local industries to support the mining sector.

MIIF’s long-term projection is to grow its assets to US$ 6 billion within the next 10 years, driven by the expanding royalties net, strategic investments, and value addition in the mining sector.

The forum concluded with calls for greater collaboration between MIIF, the private sector, and government bodies to accelerate the development of mining value chains and track mineral production more effectively.







AM/KA

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