The small-scale mining sector contributes approximately 35% of all gold produced in Ghana. The sector has seen significant
growth over the past two decades due to increased participation across the length and breadth of the country. Artisanal mining
currently employs at least 1.5 million people directly and indirectly.
The Minerals Income and Investment Fund (MIIF) has launched a scholarship scheme aimed at educating 1000- women from mining communities in the country. The scholarship which will be hosted by the George Grant University of Mines and Technology in Tarkwa (UMAT), is exclusively for women from mining communities studying in mining engineering and STEM related mining courses. Dubbed the MIIF- WomCom scholarship, the scheme will run for ten years with a projected 100 award beneficiaries every year.
The goal of the MIIF- WomCom scholarship program is to increase female participation in the management of the mining sub-sector which is below 8%. This initiative is in line with the Fund’s ESG policy.
CRITICAL INTERVENTION
MIIF CEO, Edward Nana Yaw Koranteng says his outfit took the decision to make the critical intervention to support the development of human capital in the mining sector as it considers that to be the most important investment across the mining value delivery chain. He emphasised that, for Ghana to benefit and leverage on its mineral resources, good policies will not be enough until there is deliberate development of the human resource to support the sector. “We believe that just investing in equity, investing in the value chain etc. without investing in human development will really just take us nowhere; you know, we will hit a wall at a point in time,” Mr. Koranteng stated.
While human resource development is the key goal driving the establishment of the scholarship scheme, the specific concentration on women from needy families in the mining communities is of prime focus to MIIF. Apart from the fact that this initiative bridges the gap in this male dominated industry, it provides an opportunity to create female role models from these communities and erodes perceptual biases borne out of certain traditions and prejudices against women.
RESEARCH AND ESG
The environment, social and governance framework that underpins every decision of MIIF is also fed by extensive research in the mining sub-sector that identified more value with women participation in the mining.
The Head Corporate Affairs and External Relations, Mr Kojo Frempong said, “The research is pretty conclusive, the more you invest in women in the sector, the more value is created for the sector as there is greater retention in the communities”. For us at MIIF, this WomCom scholarship scheme is a strategic investment that will inure to the benefit of the country as a whole and create more advocates for environmental, social and governance issues” said the Head of ESG at MIIF, Ms Sharon Addo.
Ghana is blessed with natural resources, but we have seen the dangers in other jurisdictions when there is policy failure and a lack of investment in the mining value delivery process. Mr Koranteng stressed that, resources are not infinite making it crucial to leverage the resources cleverly in a sustainable manner, this gives meaning to the fact that, resources do not develop a nation, brains do.
SCHOLARSHIP EXPANSION
Though UMaT is the first university to administer the scholarship, MIIF plans to extend the opportunity to students from the Kwame Nkrumah University of Science and Technology and the University of Energy and Natural Resources in Sunyani in an expandable drive for the scholarship.
“We are modeling the WomCom scholarship scheme with UMaT. 100 female students will be selected every year. Some of the beneficiaries will be undergraduate while others will be involved in the postgraduate category. We have great expectations of the various cohorts for the next ten years. Once we see the success of the program we will replicate it in the other universities, I am deeply inspired by the saying of the great Ghanaian educationist, Dr. Kwegyir Aggrey who said; if you educate a woman, you educate a nation. Imagine the impact hundreds of qualified women engineers will have on the mining sub-sector only a few years after this program takes off”.
FRAMEWORK AGREEMENT WITH UMaT
The Women in Mining Communities Scholarship scheme (WomCom Scholarship) is part of a five-part collaboration framework between MIIF and UMaT. The other four areas of collaboration are; an annual thought leadership event dubbed the MIIF Speaker Series which is in its third year, The MIIF Technical Training and Jewellery Training Making Centre which will be completed in December 2024, a continuous training and technical assistance from UMaT to MIIF
under which the University provides consultancy to MIIF and the proposed Ghana Mining Museum and Mining Research Center which is also supported by the Chamber of Mines and will be partly funded by MIIF.
The Minister of Finance, Dr. Mohammed Amin Adams has described the collaborative agreement between MIIF and UMaT as the foundational stone which clearly makes the partnership between academia and practicing institutions possible. “The structural relationship is firmly anchored on collaboration. MIIF is guided by the research from UmaT while the University also gets support from the Fund. An important area that bears out this collaboration is in the Small-Scale Mining Incubation Program (SSMIP) where MIIF intends to help formalize some small-scale mining firms by investing capital, installing a rigorous financial reporting and environmental compliance regime as well as an off-taker agreement for gold produced under the program.
SUPPORT OF THE CHAMBER OF MINES
The Chamber of Mines has expressed its support for MIIF’s initiatives. Dr Sulemanu Koney, the CEO of the Chamber indicated that the MIIF / UMAT Collaboration and the scholarship scheme exemplifies what is possible for the sector if things are done well. A number of mining companies such as Atlantic Lithium which has discovered lithium in Ewoyaa and set to start production in 2025 have indicated their readiness to support the scholarship scheme when it takes off in October 2024.
ABOUT MIIF
MIIF was set up the Minerals Income Investment Fund Act, 2018 (Act 978) as amended to receive royalties from minerals accruing to government, invest those royalties to secure the future wealth of the country and also manage the equity interest of Ghana in large scale mining firms. Founding on this three-pronged mandate of the Fund, MIIF has developed unique strategies for all 11 minerals that currently pay royalties to the government of Ghana. MIIF among other investments, has significant equity in Asante Gold Corporation, a Ghanaian, Canadian and Frankfurt listed Explanation and Mining company and is now the third largest shareholder globally in Atlantic Lithium, an Australian exploration company listed in the United Kingdom, and Australia and recently listed on the Ghana Stock Exchange which was in line with its agreement with MIIF.
Elevating the potential of the small-scale mining industry and spearheading diversification efforts in the mining sector, MIIF is transforming Ghana’s mineral wealth into economic growth.
As a sovereign minerals wealth fund, the Minerals Income and Investment Fund (MIIF) manages the Ghanaian government’s equity interest in mining companies and collects mineral royalties from all mining operations. Beyond the mine shafts of Ghana, the institution holds a profound pan-African vision – to unlock the full mining potential of the continent. “We are one of the fastest-growing sovereign wealth funds in the world,” says Edward Nana Yaw Koranteng, CEO of Minerals Income and Investment Fund (MIIF), a lawyer with an investment banking background that spans over 25 years. “In October 2021, we had about US$195 million in assets under management. We are now working north of US1.5 billion,” he notes.
Ghana’s small-scale mining industry contributes up to a staggering 40% of the nation’s gold output, surpassing the output of some established gold-producing countries in Africa, a sector the CEO says is often challenged by illegal mining activities. “Ghana’s small- scale gold mining sector employs more than 10% of the Ghanaian population, while large-scale mining employs just below 40,000 in total, which makes the formalization of the small-scale sector imperative,” says Koranteng. MIIF recently launched a small-scale gold mining incubation pilot program to support the formalization of the sector and convert small-scale mining entities into medium to large-scale businesses. The support focuses on corporate governance, provision of capital, a gold production traceability mechanism, and access to the market through the MIIF gold trade desk.
The institution is piloting its support program with 10 small- scale miners, developing the blueprint for a larger rollout. “The full implementation can triple the US$2.4 billion annual revenue from small- scale gold mining in Ghana,” says Koranteng. “Illegal mining slashes our small-scale mining revenue by 40%. The program will tackle this by formalizing the sector. With gold found in almost every region in Ghana, this small-scale focus can unlock nationwide development. It will be the most revolutionary support for artisanal mining in Africa’s history.”
In tandem with its resource development efforts, MIlF is implementing a robust strategy to nurture a skilled workforce within the mining industry. “Ghana loses skilled goldsmiths every year with very little growth in the jewelry industry making end of value addition as seen in non-producing gold countries like the UAE, where Ghanaian gold is crafted into high-end jewelry. To counter this, MIIF is constructing a MIIF technical training center at the University of Mines and Technology with a jewelry-making center to capture more value from Ghana’s gold,” notes Koranteng.
While gold remains Ghana’s golden goose, the Western African country is looking to diversify its mining sector. “Gold represents about 90% of our total revenue in mining, but we have other untapped minerals, such as lithium, barite, graphite, copper, cobalt, uranium, iron ore, and industrial salt, in huge commercial quantities,” notes Koranteng. MIIF has invested in the Ada Songhor Pans salt project, Sub-Saharan Africa’s biggest salt project, under the lead of a Ghanaian company called Electrochem. It is simultaneously leveraging its lithium resources to support the Ghana automobile development plan. “Our focus on lithium is to leverage ts industrial importance to support areas such as battery making, research, and to make Ghana the EV hub of sub-Saharan Africa. We plan to leverage the African Free Trade to make us a proper hub for batteries, solar panels, and cars,” Koranteng says. In a different venture, MIIF is investing in newfound graphite deposits discovered in the northern part of Ghana and will look into the value addition of Ghana’s bauxite reserves to help develop the planned Ghana-integrated aluminum development plan.
MIIF focuses on the entire mining value chain, including the capital markets. “We are working on a gold-backed ETF that will be listed on Ghana’s Stock Exchange. We supported the listings of Asante Gold, where we invested over US$40 million, Atlantic Lithium, for which we are investing over US$32 million, and the same shall be done for the Electrochem salt project. Our small-scale mining program also aims to prepare companies for potential stock exchange listings,” Koranteng says. “We have a vision where we see the likes of at least 10 MIIF in other African countries financing major mines through joint ventures and reducing reliance on Western capital. This model empowers African countries to develop their mining sectors and share best practices. MIIF can help African nations establish sovereign wealth funds focused on mining,” he says. MIIF co-invests alongside investors in the mining sector, thereby reducing risk for investors and forging a path towards a more diversified mining sector in Ghana.
The Minerals Income Investment Fund is growing in international recognition on the strength of the Fund’s outstanding performance over the last two years.
The Chief Executive of MIIF, Edward Nana Yaw Koranteng has become a magnet for award initiatives and his citation and trophy cabinet is growing quickly. Koranteng, a lawyer and an investment banker has set himself the goal of building Africa’s biggest minerals sovereign fund and his quest is already blossoming.
In October 2021, when Koranteng was appointed, the Assets Under Management (AUM) of the fund was around $180 million. By the end of the first quarter of 2024, the AUM has risen to $1billion, representing 550% and could be more subject to ratification. The fund’s international recognition has also increased remarkably on the strength of investment in Asante Gold Corporation, the Toronto and Frankfurt listed gold exploration and production company that runs the Mensin Bibiani Gold Mine and Chirano Mines in Ghana.
Edward Nana Yaw Koranteng has also pursued alternative investments away from gold with a two-tier equity stake in Atlantic Lithium, the lithium exploration and production company which is on course to develop Wet Africa’s first lithium mine in Ewoyaa in Ghana’s Central Region. A recent $30 million injection into Electrochem, the company developing the Ada Songhor Salt project is set to make Ghana the biggest producer of ‘the white Gold’ in Africa.
“We analysed on end, all the CEO’s in the Ghana minerals sector and the conclusion was that Mr. Koranteng was incontrovertibly the best CEO for 2023/2024,” said Ernest Egyir, the organizer of the prestigious annual CEO awards.
“The record of the team at MIIF led by Mr. Koranteng has been nothing short of spectacular and this is what we need to spark revolutionary change in our public sector All the companies the invested in have also by the prompting of MIIF now listed on the Ghana Stock Exchange. Mr. Koranteng has always said the growth of the fund cannot only be vertical. There must horizontal impact on allied growth poles of the economy. Deepening the stock market is necessary for the growth of the capital market. That is how you have integrated growth,” said Ernest Egyir.
MIIFs growth has not been agnostic of sustainability, diversity and inclusion which are topical for the investment team in arriving at their investments.
“We will not do it if it fails sustainability questions.” says Mr. Koranteng. “Similarly, if it does not use its agency to boost women’s participation or bring into focus diversity and inclusion, the investment no matter how profitable on paper they may seem will not get our approval,” said Koranteng. This stance by MIIF has already been noticed by the Sustainability and Social Investments Awards which recognized MIIF’s investments reflect the ethos of the awards.
The fund won awards for the Best Company in post disaster rehabilitation program, ESG investment Initiative of the year and the Sustainability and Social Investment CEO of the year 2023. All three awards were anchored on MIIF’s continuous support for the Appiatse mining disaster victims and the support towards the rehabilitation of their abode and livelihood as well as MIIF’s foray into the Small-Scale Incubation Program which is geared at revolutionizing small scale mining in Ghana.
Ghana’s second lady, H.E samira Bawumia gives her seal of approval by calling the Sustainability and Social Investment Awards and its winners a glimmer of hope in a world currently plagued with so many development problems.
Mrs. Bawumia congratulated the winners for going against the grain.
“Problems such as rapid urbanisation, industrialisation and population growth have strained natural resources, resulting in deforestation, pollution and climate change.
Amidst these challenges, there lies a glimmer of hope — the realisation that sustainability does not impede economic growth but rather acts as a catalyst for it.” said HE Samira Bawumia”
The Minerals Income Investment Fund (MIIF) is aspiring to go beyond simply funding mining projects and is setting its sights on transforming the entire mining sector into a cornerstone of the country’s economy, Chief Executive, Edward Nana Yaw Koranteng, has said.
The position, he noted, forms part of the objective of the organisation, which is to create sustainable generational wealth.
“Our role at MIIF, is not only in funding or taking equity positions in mines, but towards the vision of creating a fully-fledged mining industry and for mining to be a first pillar of the economy. Our investment covers every single facet of the mining value delivery chain which includes investing in capacity building, research and development” he added.
This came to light during the MIIF and University of Mines and Technology (UMaT) Speaker Series 2024, which was held at Tarkwa in the Western Region.
It was on the theme: ‘Mining as an asset class; the rubrics of using the stock market as a growth pole for wealth generation.’
The event brought together academia and players in the mining industry.
Mr. Koranteng disclosed that there are four major investments in the sector, these includes; the MIIF Scholarship programme for women to bridge the gender gap in the mining sector and has also the establishment of the MIIF Scholarship Scheme for women at UMaT.
He also mentioned that the Scholarship Scheme starts in September this year and covers both undergraduate and post graduates. This is however open to only women or girls from needy families in the mining communities.
“The Ghana National Mining Museum under a collaboration with 20 mining companies and UMAT, MIIF is spearheading the development and construction of a mining museum here in Tarkwa,” Mr. Koranteng further disclosed.
Another, he said, is the establishment of a Minerals Testing and Technology and Innovation Centre in partnership with one of the most recognised names on the continent.
“Discussions have already commenced with the plan to have it constructed and commissioned within the next five years. This will be the second such advanced testing center in Africa and will serve the West Africa region,” he noted.
Also, Mr. Koranteng mentioned that plans are far advanced for the sod cutting of a Jewelry Making Training Center within the next two months at UMaT with expected completion in the next 14 months.
According to Mr. Koranteng, MIIF is about to pilot what has been described as the most revolutionary financing initiative for small scale gold mining in Africa.
“This initiative, termed the small-scale mining incubation programme, shall provide support for licensed small-scale gold mining companies from US$200,000 to US$5 million per mine,” he noted.
He said this will cover the provision of working capital and capital for mining machinery, ensure corporate governance structures, institute a traceability and tracking mechanism for the gold produced and provide a market for the gold produced through the MIIF Gold Trade desk.
He continued that MIIF, is also developing a physical Gold-Linked Exchange Traded Fund (MIIF Gold ETF), supported by sustainably mined gold from the Small-Scale Mining Incubation Programme.
The MIIF Gold ETF, he clarified, will be structured with gold as the principal underlying asset, for which the security will track the price of gold.
This will be the second gold backed ETF on the Ghana Stock Exchange after the South African GLD.
“We plan to list by September 2024,” the MIIF CEO confirmed.
Atlantic Lithium Limited (AIM: ALL, ASX: A11, GSE: ALLGH, OTCQX: ALLIF, “Atlantic Lithium” or the “Company”), the
African-focused lithium exploration and development company targeting to deliver Ghana’s first lithium mine is
pleased to announce the appointment of Edward Nana Yaw Koranteng to the Company’s Board of Directors as an Independent Non-Executive Director, effective immediately.
Edward Koranteng is a lawyer and an experienced corporate and investment banker with over 23 years of experience.
He has held the position of Chief Executive Officer of the Minerals Income Investment Fund (“MIIF”), Ghana’s sovereign minerals wealth fund, since 2021. As CEO, he oversees the management of Ghana’s equity interest in mining companies, manages all royalties paid to the state from mining activities and supports the growth of the mining industry through long-term, sustainable investments in the sector.
Mr. Koranteng assumes the role of Independent Non-Executive Director in line with the agreed terms of MIIF’s US$5m subscription in the Company (refer announcement of 24 January 2024), which forms the first part of its planned US$32.9m total investment in Atlantic Lithium and its Ghanaian subsidiaries to expedite the development of the Company’s flagship Ewoyaa Lithium Project.
Prior to joining MIIF, Mr. Koranteng held the role of Business Head for East, Central and Southern Africa for Ghana International Bank plc (“GHIB”), where he was responsible for GHIB’s energy and mining portfolio. At GHIB, he led various financing projects in Ethiopia, Ghana, Tanzania, Kenya and Malawi. Before that, Mr. Koranteng worked with the Chase Bank Group (Kenya), now SBM Bank of Mauritius, as the Group Head for Energy, Oil, Gas and Mining.
Mr. Koranteng is the co-founder of one of Ghana’s leading law firms, Koranteng & Koranteng Legal Advisors, and
currently sits on the boards of major gold producer Asante Gold Corporation, the Minerals Income Investment Fund, and Glico General Insurance Ltd in Ghana.
Mr. Koranteng holds a BA (Hons) from the University of Ghana, a Master of Laws in International Banking and Finance from the University of Leeds in the UK, a Postgraduate Diploma from BPP Law School in the UK and the Ghana School of Law. He has practised as a barrister in both the UK and Ghana and holds various executive and postgraduate certifications, including in Oil, Gas and Mining from the Blavatnik School of Government, University of Oxford in the UK.
Commenting, Neil Herbert, Executive Chairman of Atlantic Lithium, said:
“It gives me great pleasure to welcome Edward to the Atlantic Lithium Board, assuming the position available to the Minerals Income Investment Fund as agreed under the terms of MIIF’s US$5m Subscription in the Company, which was completed in January 2024.”
“Enabling greater Ghanaian representation in the strategic direction of the Company and the Ewoyaa Lithium Project,
Edward’s appointment more closely aligns the Company’s objectives and the advancement of the Project with its Ghanaian stakeholders.”
“Further to its Subscription in the Company, Edward’s appointment reflects MIIF’s strong belief in Atlantic Lithium as an investment opportunity and the successful delivery of the Project to generate significant benefits to Ghanaians. Bringing decades of mining, legal and corporate experience to the role, Edward will, no doubt, contribute greatly to the advancement of the Project.”
“I look forward to finalising the second stage of MIIF’s investment in the Company and working closely with Edward towards our shared goal of achieving lithium production at Ewoyaa.”
Commenting, Edward Koranteng, added:
“I look forward to supporting the growth of Atlantic Lithium, not only in Ghana but as a foremost lithium exploration company on the continent. MIIF’s investment in Atlantic Lithium is premised on the belief that the Ewoyaa Lithium Project and the Company’s other tenements hold great promise and opportunity, which will generate significant returns and further support Ghana’s green energy efforts.”
“Our investment also supports the Government of Ghana’s overarching objective of ensuring that Ghana remains the preferred mining destination in Africa, with MIIF as a co-investment partner. I am without any doubt that the Project shall be successfully delivered with the full support of MIIF and the Government of Ghana.”
“I look forward to working with the Board and Management of Atlantic Lithium towards the goal of developing the world-class Ewoyaa Mine and achieving full lithium production.”
Mr. Koranteng does not hold any shares in Atlantic Lithium Limited.
This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 (“MAR”), and is disclosed in accordance with the Company’s obligations under Article 17 of MAR.
The President, Nana Addo Dankwa Akufo-Addo has cut the sod for the Mineral Income Investment Fund (MIIF) Technical Training Centre at the University of Mines and Technology (UMaT) at Tarkwa in the Western Region.
The centre, which will be completed within eight months, shall also have a 500-seater auditorium/lecture hall, a library and offices to support the running of practical programmes in metal smithing, jewelry technology and hallmarking of jewelry to international standards, while exploring artificial intelligence and smart systems in mineral value addition.
According to the President, this, is in line with the objective of making Ghana, a jewelry and technical training hub in Africa and support the development of technical expertise required, for value addition to minerals and increase job creation.
“The art of jewelry making I understand is dying. Though it is traditionally recognized as an important value addition process to gold, challenges with great craftmanship has bedeviled the industry. By building this centre, the expected deliverable is that a new breed of jewelers will be trained here.
They will be imbued with the necessary training to become brilliant jewelers and will also be trained in how to build businesses and more importantly given the skills that will ultimately turn Ghana into a jewelry hub for Africa. Any visitor to the country must demand Ghana’s gold jewelry in the same way our Kente has become a referential souvenir or keepsake for every tourist” the President explained.
He continued that “the day must soon be upon us when visitors come to Ghana’s gold jewelry hub as their sole purpose to the country and the students from this centre must be the lead jewelers”.
Dr. Mohammed Amin Adam, Minister for Finance, explained that the partnership that MIIF has formed in a short time, are of significance and one of such partnerships is with the UMaT.
He revealed that MIIF has collaborated framework agreement with the UMaT that spelt off four different components, “The first is the MIIF UMaT scholarship for women in mining communities. This will be launched in a month, and every year, 90 beneficiaries will be supported with scholarships for 10 years”.
The second, he said is the construction of the UMaT Technical Training and Jewelry Centre, the third is the MIIF-UMaT speaker series, a talk leadership event that bridges academia and practice has been held twice already on campus and the fourth is the continuous training of MIIF staff to understand the technicalities and the complexity associated with the mineral sub sector.
Edward Nana Yaw Koranteng, CEO of MIIF said, the centre support the move towards ensuring that Ghanaians have ownership of the resources. We are looking for excellence and quality human resource from this centre.
MIIF, he said is ensuring that value is added to our minerals. “Local jewelry makers activities, will be supported, in fact, there will be a symbiotic relationship, some are very skilled in some of the old ways of jewelry making and they can marry that with the modern ways that will make it intrinsically Ghanaian”.
He commended UMaT for producing the best engineers in the country and the world at large.
George Mireku Duker, Deputy Minister of Lands and Natural Resources was of the firm believe that the centre, will further propel UMaT into a centre of excellence for training world class professionals in the down stream aspect of mining and allied industries.
John Ntim Fordjour, the Deputy Minister of Education, noted that Universities in the country, are being repositioned to be credible tools to support the industry and to be centers of innovations where researchers in the 21st century would be seen.
Kwabena Okyere Darko-Mensah, the Western Regional Minister, expressed appreciation to the MIIF for sponsoring such a huge project in the region.
He noted that construction of this technical training Centre in UMAT is a smart idea considering how the country’s mineral scene is changing.
“I am convinced, that the technical training centre when completed and operational, will assist the University train the country’s youth and equip them with the required technical competences for the mining industry”.
Pro Vice Chancellor of UMaT, Prof Richard Amankah was hopeful the centre will train more of the youth in the sector to gain employment opportunity.
The Director General of the National Internal Audit Agency, Dr. Eric Oduro Osae says the Minerals Income Investment Fund (MIIF) is poised to become the best minerals sovereign fund in Africa after inaugurating the Fund’s Audit Committee at the MIIF Head Office in Accra. MIIF, which is said to be arguably the fastest growing minerals sovereign fund in the world was conceived by the Government in 2018 and passed into law by the Minerals Income Investment Fund Act 2018, (Act 978). The mandate of the fund is to receive mineral royalties on behalf of government, manage the equity interest of government in large scale mines and help manage budgetary exposures arising out of the volatilities in commodity prices on the international markets.
Dr. Oduro Osae, the Director General of the Internal Audit Agency, observed that the Fund by inaugurating its Audit Committee was now even better placed to work for the people of Ghana due to the legal architecture that governs the audit process of public sector companies. The Audit Committee function is derived from the Public Financial Management Act 2016, (PFM Act 921) which imposes a three-pronged responsibility on the Internal Committee. Further to Section 86 (1) of the PFM Act, 2016, the Public Financial Management Regulations, 2019 (L.I. 2378), the Public Procurement Act, 2003 (Act 663) as amended, the Guidelines for Effective Functioning of Audit Committees and other applicable financial laws, the audit committee is to perform a mandatory role, an advisory role and provide support to the internal management set-up to ensure greater value for the people of Ghana. The CEO of MIIF, Mr Edward Nana Yaw Koranteng added that, the inauguration of the Internal Audit Committee enhances corporate governance of the Fund which is essential to creating a world class sovereign wealth fund.
Dr. Oduro Osae spelt out the mandatory role to include the preparation of an annual report and an annual statement of implementation for the attention of the Minister for Finance, Office of the President, Auditor-General, and the Public Accounts Committee (PAC) of Parliament as well as the Director-General of the Internal Audit Agency. “The reason for all of the above is to ensure that public funds are spent judiciously and well, and the features of accountability and the management of risk are ever present in what MIIF does” said Dr. Eric Oduro Osae.
EXPERIENCED COMPOSITION
The newly inaugurated Audit Committee of MIIF comprises five executives with C-suite experience in public sector financial management. The Chairman of the Internal audit committee is John Fiam-Coblavie an auditor and chartered accountant with at least twenty years’ experience in the financial sector. Madam Christiana Sakyibea Dei, a member of the Committee has had a long career in the public sector including serving at the Ministry of Fisheries and on several Audit Committees. She is also a Chartered Accountant with at least 20 years of experience.
Other members are Mr. Hayford Amoh and Mrs. Felicia Ashley both of the Ministry of Finance and Mr. Emmanuel Nii Dowuona a nominee from the Internal Audit Agency, a private consultant on Audit matters and Mercedes Maud Naa Dei Ashie a chartered accountant with over 12 years’ experience in internal Audit as Head of internal Audit for the Minerals Income Investment.
MIIF’S GROWTH TRAJECTORY
MIIF’s growth trajectory has been fast-paced since 2019 when Assets Under Management (AUM) of the Fund was circa US$125Million. In 2024, subject to validation by an independent international audit firm, MIIF’s AUM will reach circa S$1.5billion by June 2024. Edward Nana Yaw Koranteng the Chief Executive Officer of MIIF said, “ one of our objectives is to benchmark the best sovereign funds in the world on all fronts including corporate governance principles. We are incorporating best practice for the most high-performing sovereign funds in the world towards our vision to create one of the leading sovereign wealth funds in the world.”
ABOUT MIIF
MIIF is Ghana’s sovereign minerals fund mandated by the Minerals Income Investment Fund Act 2018, (Act 978) as amended, to maximize the value of dividends and royalties income accruing to the Republic of Ghana in a beneficial, accountable and sustainable manner and to monetize Ghana’s mineral wealth in a manner that will secure the future wealth of the country.
At present, MIIF receives royalties from at least ten minerals currently being mined in Ghana including gold, manganese, limestone, silver and sand winning. MIIF has equity stake in Asante Gold Corporation, a Canadian, Frankfurt and Ghana Stock Exchange listed gold mining company which owns the Chirano, Bibiani and Kubi mines. The Fund is also the 4th largest shareholder globally in Atlantic Lithium an Australian Company which owns the Ewoyaa world class lithium finds and other tenements in Ghana. The Ewoyaa will go into mine develop- ment and production by the first quarter of 2025. MIIF has closed a USD$ 30 million for the development of the Ada Songhor Salt which will eventually make it the largest in sub-saharan Africa. In line with the Government of Ghana’s local content policy, MIIF has invested GHS25 Million into a Private Equity Fund which will lend to the mining micro sector. MIIF intends to introduce a gold backed ETF on the Ghana Stock Exchange before year end 2024 as part of its plans to help develop the capital markets and make mining a viable alternative asset class for investors.
AN ACT to establish a Fund to manage the equity interests of the Republic in mining companies, to receive mineral royalties and other related income due the Republic from mining operations, to provide for the management and investment of the assets of the Fund and for related matters.
DATE OF ASSENT: 3rd December, 2018.
PASSED by Parliament and assented to by the President:
The Minerals Income Investment Fund
Section 1—Establishment of the Minerals Income Investment Fund
(1) There is established by this Act a fund known as the Minerals Income Investment Fund.
(2) The Fund is a body corporate with perpetual succession, and a common seal, may sue and be sued in its corporate name and have in all respects the powers of a body corporate.
(3) The Fund may acquire and hold movable and immovable property, dispose of property and enter into a contract or other related transaction.
(4) Where there is a hindrance to the acquisition of immovable property, the property may be acquired for the Fund under the State Lands Act, 1962 (Act 125) and the cost shall be borne by the Fund.
Section 2—Objects of the Fund
The objects of the Fund are to
(a) maximise the value of the income due the Republic from the mineral wealth of the country for the benefit of its citizens;
(b) monetise the minerals income accruing to the Republic in a beneficial, responsible, transparent, accountable and sustainable manner; and
(c) develop and implement measures to reduce the budgetary exposure of the Republic to minerals income fluctuations.
The Chief Executive Officer of the Minerals Income Investment Fund (MIIF) has told a meeting of global investors in Canada that MIIF is ready to co-invest with investors seeking opportunities into the minerals sub-sector in Ghana. This he said, is in line with the strategic objective of MIIF to support the quest to make Ghana the mining hub in Africa and localise value as much as possible. Koranteng was speaking at the 2024 Prospectors and Developers Association of Canada (PDAC) Trade show held in Toronto, Canada. “We are seeking co-investment partners in our bid to invest in the entire minerals value chain in Ghana. We are ready to co-invest and thereby create a de-risking mechanism for investors. Our emphasis is the development of the entire value chain,” said Edward Nana Yaw Koranteng.
MIIF AS A PREFERRED PARTNER
We are building Africa’s biggest sovereign minerals fund,” said Koranteng who has grown the Assets Under Management (AUM) of MIIF from circa $185 Million in 2020 to a current $550 million as of Dec 2023.
“This is expected to exceed $1.2 Billion this first quarter of 2024 following the completion of a re-valuation of Ghana’s free carried interest in some large-scale mines which MIIF is mandated by law to manage. The validation of the revaluation of these assets is being undertaken by an independent international audit firm.” “We have a robust pipeline of investments and have adopted an aggressive and revolutionary mechanism in expanding our royalty’s base. The opportunities in Ghana are enormous and goes beyond gold for which Ghana is known for. The opportunities for investors also cover the salt sector, lithium, bauxite, iron ore, graphite, feldspar, diamonds, kaolin, chemical plants and refineries across the value delivery chains of each mineral type. We are inviting investors to seize these opportunities in the mining sector.” Koranteng said.
INVESTMENTS IN THE CRITICAL MINERALS SECTOR
A reclassification of minerals such as Manganese, Graphite, Bauxite, Lithium and Salt as ‘Priority Minerals’ has refocussed attention on their value chain development and value addition through deliberate investments by the Fund. “We see vast opportunities in Manganese, Graphite, Lithium and Salt especially in this era of decarbonisation and the regionalisation of development and trade in Africa, Koranteng told investors.
“At present, we are working on investments in graphite which has been found in commercial quantities in northern Ghana and closed a $32.9 million dollar equity stake in Atlantic Lithium, an Australian and UK listed company which has discovered commercial quantities of Lithium in Ewoayaa near Mankessim, in the Central region of Ghana. We are also working on other potential significant lithium finds in Ghana. MIIF intends to invest in the processing plants for these transitive minerals in line with President Nana Akufo-Addo’s vision of making Ghana a battery hub and a centre for Electronic Vehicles (EV) in Africa by leveraging the current Ghana automobile development plan. Ultimately, we want to become a centre for Electronic Vehicle (EV) assembling or manufacturing for the whole of Africa.” said Koranteng.
“MIIF is on the cusp of closing a $30 million investment in industrial salt from the Ada Songhor salt basin in Ghana which is managed by Electrochem Ghana. Salt is an industrial mineral that has over 14,000 uses covering textiles, food
processing, oil refining, pharmaceuticals, and caustic soda among others. Salt is therefore essential to the industrial needs of Ghana and West Africa. As the only prime industrial salt enclave in West Africa, the Ada project would feed the over 800,000.mt demand per annum in Nigeria alone for example. The Ada Songhor Salt project sits on 41,000 acres and at just 50% development, will become sub-Saharan Africa’s largest salt producing company ahead of Walvis Bay in Namibia.”
LEVERAGING GHANA’S GOLD TO CREATE MORE OPPORTUNITIES AND FURTHER LOCALISATION OF VALUE
On Gold, Mr. Koranteng said, “MIIF seeks to invest along the value chain with emphasis on Ghanaian mining support services”.
MIIF’s plan is to create a mining eco-system of opportunities through its investments especially in the gold mining sector which employs more than six million people directly and indirectly. In this regard, MIIF has initiated a six-year US$60 Million dollars investment program to support the small-scale mining sector which is fully indigenised and contributes up to 40% of Ghana’s total gold output. However, the sector remains informal and fraught with illegal mining and environmental challenges. MIIF’s initiative dubbed the Small-Scale Mining Incubation Program (SSMIP) will contribute to the formalisation of the sector and lead to the creation of well-structured Ghanaian junior mines.
The SSMIP involves the rigorous selection of licenced small scale mining companies with proven reserves. MIIF plans to invest equity in selected mines who meet a well thought through criteria. The support includes corporate governance structures, the provision of machinery and other capital items, provision of working capital, provision of technical support for efficient mining and the provision of market access or offtake through the MIIF Gold Trade Desk. The long term objective is to take these small-scale companies public through the alternative exchange of the Ghana Stock Exchange. This is the vision of President Nana Akuffo Addo for this important sector. The President charges us to support the small-sector in a revolutionary manner which would lead to the creation of local Ghanaian mining champions.” Mr. Koranteng emphasised.
DEVELOPING THE CAPITAL MARKET
MIIF has signed a Memorandum of Understanding (MOU) with the Ghana Stock Exchange which has over the past twenty years been one of the top performing bourses in Africa. The arrangement with the GSE is essentially on two pivots; First is to push mining entities in which MIIF has investments to list on the Ghana Stock Exchange (GSE). An example of this is the Canadian listed Asante Gold Corporation in which MIIF has a significant holding. MIIF championed the listing of Asante Gold Corporation on the GSE. Atlantic Lithium, the Ewoyaa basin mining company which has MIIF as the 4th largest shareholder will also be listed on the Ghanaian bourse by the third quarter of 2024.
CREATION OF THE MIIF GOLD-BACKED ETF
The second pivot of the agreement between MIIF and GSE is to list a Gold Backed Exchange Traded Fund by MIIF. This will be only the second gold backed ETF on the stock exchange. “We are designing a gold backed Exchange Traded Fund (ETF) which would be listed on the GSE. This will make it the second gold-backed ETF on the GSE after the ABSA SA-led GLD product which is performing well. Our plan is to have this listed by the end of the year. The ETFs and the listing of mining assets will deepen the Ghanaian capital markets and provide alternative investments or alternative asset classes to Pension Funds and investors as a whole. We believe this is an opportunity for Ghanaians in the diaspora and investors worldwide.” Mr. Koranteng concluded.
ABOUT PDAC
Since being established in 1932, the Prospectors & Developers Association of Canada (PDAC) has evolved to become the most representative community of mineral exploration and development around the world even though it mainly concerns itself with serving Canadian interests and public policy. Its annual trade show at the Metro Convention Centre in Toronto every March attracts at least 23,000 attendees and exhibitors from over 120 countries. The PDAC convention is reputed to be the most internationally patronized platform for networking, deal-making and discussing the current issues, trends and technologies shaping the mining industry.
ABOUT MIIF
MIIF was set up the Minerals Income Investment Fund Act, 2018 (Act 978) as amended to receive royalties from minerals accruing to government, invest those royalties to secure the future wealth of the country and also manage the equity interest of Ghana in large scale mining firms. Founding on this three-pronged mandate of the fund, the current management and board of MIIF have developed unique strategies for all 11 minerals that currently pay royalties to government. MIIF has significant equity in Asante Gold Corporation, a Ghanaian, Canadian and Frankfurt listed Explanation and Mining company and has closed a $32 million two-part investment in Atlantic Lithium an Australian company which has discovered commercial quantities of Lithium in Ghana.
