The Minerals Income Investment Fund (MIIF) has unveiled ambitious plans to channel approximately $30 million into legally established small-scale mining enterprises through a novel initiative called the Small-Scale Mining Incubation Programme.
This program aims to aid small-scale miners in their growth journey, transforming them into responsible and sustainable mid-tier mining operators.
The primary objective of this initiative is to promote the formalisation of the small-scale mining sector, which contributes significantly, accounting for roughly 30 to 40 percent of the nation’s total annual gold production.
The investment’s broader goals encompass curbing illegal mining activities (known as “galamsey”), fostering job creation, and ensuring adherence to stringent environmental practises and safety standards.
Edward Nana Yaw Koranteng, the Chief Executive Officer of MIIF, cited a report by the Africa Centre for Energy Policy (ACEP), estimating that the small-scale mining sector possesses the potential to generate an impressive $2.1 billion annually.
Under the incubation program, participating companies will receive essential support.
This includes capital infusion in the form of machinery, guidance on corporate governance in alignment with environmental, social, and governance (ESG) principles, and facilitation of market access through MIIF’s gold trade desk, among other valuable assistance measures.
“The idea is to develop them into junior mines, similar to what pertains in Canada and other countries. Some of them have huge potential,” he said.
During a stakeholder forum organised by MIIF in Accra, Mr. Koranteng outlined the meticulous approach that will be adopted for the implementation of this initiative.
This method will involve a thorough verification of the resources held by selected ventures, a process that will engage institutions such as the University of Mines and Technology (UMaT).
The small-scale mining companies that meet the criteria will be listed on the Ghana Alternative Market (GAX).
As part of its investment strategy, MIIF plans to exit its investments through several avenues, including offering share buy-back options to management, initiating IPOs on the GAX, and exploring trade sales to other investors.
This strategic move by MIIF underscores the increasing emphasis on responsible resource extraction and sustainable economic development.
By directing investments towards licenced small-scale mining operations, MIIF is poised to strike a delicate balance between financial returns and environmental stewardship.
The stakeholder forum, designed to become a regular component of MIIF’s activities, operated under the theme ‘MIIF as a lever for development in Ghana, investing in a responsible, transparent, and accountable manner to secure the future wealth of Ghana.’
The event brought together numerous industry experts, including civil society organisations (CSOs) specialising in resource governance and transparency, to deliberate on MIIF’s progress thus far and chart a path forward.
“We are looking at building Africa’s biggest mineral sovereign wealth fund, and we need the input of all stakeholders to see how we can develop the object to refine the move towards realisation of this goal—and to make sure we are able to build something that will create intergenerational value for Ghanaians,” Edward Nana Yaw Koranteng explained.
The Deputy Minister of Lands and Natural Resources responsible for mines, George Mireku Duker, said: “Without the value chain development intended to create local wealth from the resources, acquire know-how and boost employment, we will forever live on scraps and not enjoy our God-given natural resources”.
In light of these considerations, Mr. Koranteng acknowledged MIIF’s role as a catalyst for development. He emphasised that mining, both small and large-scale, in Ghana significantly impacts the lives of over 4 million people, offering both direct and indirect sources of livelihood and benefits.
He highlighted the government’s unwavering commitment to creating wealth for its citizens. To this end, efforts are underway to align mining sector laws in a way that fosters this objective.
Speaking at the stakeholder forum organized by MIIF in Accra, Mr. Koranteng reiterated that the initiative would adhere to a rigorous process. This process includes a meticulous verification of the resources held by selected ventures, with the involvement of esteemed institutions like the University of Mines and Technology (UMaT).
The plan involves listing selected small-scale mining companies on the Ghana Alternative Market (GAX).
Additionally, MIIF intends to strategically exit its investments through various means, such as offering share buy-back options to management, initiating IPOs on the GAX, and exploring trade sales to other investors.
MIIF’s recent initiative underscores the escalating concerns and unwavering commitment to ensuring responsible resource extraction and sustainable economic development.
By directing investments towards licenced small-scale mining operations, MIIF is poised to strike a harmonious balance between financial returns and environmental stewardship.
The stakeholder forum, anticipated to become a regular fixture in MIIF’s agenda, revolved around the theme ‘MIIF as a lever for development in Ghana, investing in a responsible, transparent, and accountable manner to secure the future wealth of Ghana.’
The event convened several industry experts, including civil society organisations (CSOs) specialising in resource governance and transparency, to engage in discussions about MIIF’s achievements thus far and chart the way forward.