Minerals Investment Fund to pump $500m into small-scale mining
The Minerals Income Investment Fund (MIIF) will this year roll out a $500-million investment in the small-scale mining sector.
The six-year investment, which will be rolled out in September this year, will help deal with key issues affecting the sector, such as environmental pollution, under-reporting and lack of capital investment.
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The investment package, which will be spearheaded through a special-purpose initiative, dubbed ‘MIIF’s Small-Scale Incubation’ is designed to help formalise the small-scale mining sector, not only to promote environmentally sustainable mining but also create local mining champions.
The Chief Executive of MIIF, Mr Edward Nana Yaw Koranteng, disclosed this when he met the chiefs of the Apinto and the Asenaman Kotoko Traditional councils at separate events to round off a week’s tour of selected mining areas in the Western Region.
PHOTO: The Chiefs of Apinto traditional area and the MIIF team
Incremental investment
He said an initial $250 million investment had been planned over the next three years through a public-private partnership (PPP) structure and a guaranteed off -take of gold mined by the small-scale miners.
The research
“This is premised on our research, which detailed the impediments to growth in the sector as weak mining practices, the lack of corporate governance and inadequate succession planning, the lack of working capital, mining machinery and guaranteed offtake or markets,” Mr Koranteng indicated.
The Small-Scale Incubation programme, he explained, evolved from President Nana Akufo-Addo’s plan to sanitise and bring value to the small-scale mining sector through mining community development, creating local mining champions and adding value to their produce.
PHOTO: The Chiefs of Asuosu Traditiional Area welcoming the MIIF team
MIIF Fund
With small-scale mining contributing between 30 and 40 per cent of Ghana’s total gold output, Mr Koranteng said, when the sector was formalised, it could easily lead to a 100 per cent increase in output.
“The incubation strategy involves investing in this value delivery chain with the assistance of stakeholders, such as Minerals Commission, the PMMC, the municipal security agencies and funding partners. An evaluation and monitoring structure shall be put in place, which will ensure the integrity of the process,” he added
The programme would have a holistic investment plan, which would require partners in the programme to invest in a mining traceability mechanism on the mining process, he said.
The implementation of the initiatives, Mr Koranteng said, would give Ghana’s gold a better premium on the international market.
He also said it would deal with threats of bad labelling that gold from the country risked because of the unsavoury environmental practices and high incidence of smuggling.
The MIIF, he said, would engage all traditional councils in gold-producing areas in the country before the roll out.
Commendation
The chiefs of Apinto and Asenaman Kotoko (also known as Asuoso) commended the MIIF for the plan and the visit by Mr Koranteng and his team.
They assured the team of their maximum support to make the programme a success and appealed for its swift implementation.
Small-scale mining important
Small-scale mining is responsible for the production and exportation of about 40 per cent of gold from Ghana.
In 2020, it accounted for about $2 billion of the country’s gold export receipts.
The sector is the largest employer of Ghanaians, per 2020 figures, more than the cocoa sector.
But, in spite of its obvious contribution to the economy, it is often criticised for its harmful effects on water bodies and the immense degradation of the environment through irresponsible mining methods.
The MIIF believes that while its investment will provide revenue for the fund, it will also bring immense financial and development value to the small-scale sector in an environmentally sustainable manner.
PHOTO: Mr Edward Nana Yaw Koranteng
PHOTO: Mr Edward Nana Yaw Koranteng