The recently concluded MIIF Stakeholder Conference was a platform for key discussions on “Minerals Value Addition and Value Chain Development – Essential Tools for Ghana’s Development.” Held on 15th October 2024 at the Marriott Bonvoy Hotel, this second edition gathered government officials, industry experts, civil society organizations, policymakers, and media representatives to explore the potential of Ghana’s mineral resources to fuel sustainable growth.

Making Mining the First Pillar of Ghana’s Economy

MIIF’s CEO, Edward Nana Yaw Koranteng, opened the conference by presenting the Fund’s mission and vision, highlighting the fund’s strides in making mining the cornerstone of Ghana’s economy. Through strategic investments in value addition, equity growth, and localization within the mining sector, MIIF aims to create sustainable generational wealth for Ghanaians.

As charged by President Nana Addo Dankwa Akufo-Addo, MIIF’s role extends beyond funding and equity positions in mines. We are working to build a fully-fledged mining industry with investments across the mining value delivery chain, including capacity building, capital markets, commodity trading, and research and development.

Additionally, MIIF’s commitment to Environmental, Social, and Governance (ESG) principles is demonstrated through projects like “Operation Clean the Water Bodies”, a collaboration with UMAT to use advanced technology in addressing the pollution of river bodies caused by illegal mining.

Insights from the Conference

Hon. George Mireku Duker, Deputy Minister of Lands and Natural Resources, called on MIIF to accelerate development in mining communities and help establish downstream industries in these regions. He also encouraged partnerships to track mining companies’ production, ensuring appropriate royalties are paid to the state.

David Ofosu-Dorte, Senior Partner at AB & David, delivered an insightful presentation on “Minerals Value Addition and Value Chain Development”. He emphasized the need for Africa to leverage its mineral resources within global value-added supply chains, highlighting the African Union’s Agenda 2063 and the Africa Mining Vision as critical frameworks. The shift from raw mineral exports to value-added products, he noted, is essential for long-term economic benefits.

Dividend Payout Policy and Financial Independence

Edward Nana Yaw Koranteng also announced MIIF’s plans to introduce a dividend payout policy aimed at strengthening the Fund’s financial independence. This policy will ensure that MIIF remains free from government interference, a critical factor in building investor confidence and securing long-term sustainability. The strategy will also prevent arbitrary government transfers, addressing concerns faced by sovereign wealth funds globally.

Expanding the Royalties Net and Strategic Investments

MIIF is also focused on expanding the mining royalties net through a new framework agreement with the Ghana Revenue Authority (GRA) and other state agencies to ensure that mining companies comply with royalty payments. The introduction of technology to monitor production levels in quarries and gold mines is enhancing transparency and accountability in the sector.

MIIF’s strategic investments include a US$25 million investment in Injaro, a company supporting businesses within the mining supply chain, allowing local companies to compete with international firms. Additionally, MIIF is exploring investments in strategic minerals such as graphite and lithium, which are crucial in the global shift toward renewable energy.

Future Outlook

MIIF’s goal is to grow its assets to US$6 billion over the next 10 years, driven by expanding royalties, strategic investments, and value addition in the mining sector. We are confident that these efforts will position MIIF as a key player in Ghana’s economic transformation, ensuring that mining becomes the first pillar of the country’s economy.

“The future is bright for Ghana’s mineral sector. With our strategic investments and the projected growth in royalties, MIIF will remain at the forefront of Ghana’s economic development,” said Edward Nana Yaw Koranteng, CEO of MIIF.

Operation Clean the Water Bodies: A Game-Changing Initiative by the Minerals Income Investment Fund (“MIIF”) and the University of Mines and Technology (“UMAT”).

MIIF and UMaT have initiated a technological pathway to revive Ghana’s rivers from galamsey pollution!

Tarkwa, Ghana – In a significant engineering advancement toward revitalizing Ghana’s polluted rivers, MIIF and UMaT are set to officially launch “Operation Clean the Water Bodies.” This innovative partnership aims to directly combat the destructive effects of illegal mining (galamsey) on Ghana’s vital water resources. Early pilot results have demonstrated impressive improvements in key river systems.

The pilot phase of this initiative has already yielded remarkable outcomes in two heavily impacted rivers—River Pra and River Bromo—and signifies the start of a national campaign to reclaim contaminated water bodies.

Key Results:

River Pra (Beposo Section):

• Turbidity reduced from 3,000 NTU to just 0.5 NTU.
• Total Suspended Solids (TSS) decreased from 450 mg/L to 25 mg/L.
• Lead contamination dropped from 0.51 mg/L to 0.01 mg/L, significantly below WHO standards.

River Bromo (Nkroful Section):

• Turbidity decreased from 2,390 NTU to 13 NTU.
• Total suspended solids reduced from 13,400 ppm to <0.1 ppm.
• Apparent colour improved dramatically from 79,738 ppm to 253 ppm.

These outcomes not only highlight the initiative’s success but also provide a framework for rolling out “Operation Clean the Water Bodies” nationwide, ensuring cleaner water for communities and ecosystems affected by galamsey.

Prof. Richard K. Amankwah, Vice Chancellor of UMaT and Deputy Chairman of the project steering team, expressed his enthusiasm about the results:

“The use of eco-friendly solutions has delivered exceptional outcomes. This collaboration with MIIF marks a key engineering milestone in our mission to restore Ghana’s rivers and ensure their sustainability for future generations.”

Mr. Edward Nana Yaw Koranteng, CEO of MIIF, emphasized the project’s significance for the nation:

“Clean water is vital to Ghana’s health and prosperity. MIIF is proud to be part of this initiative, which aligns with the Fund’s commitment to environmental responsibility and long-term sustainable growth. The long term success of this operation however hinges on a complete stop to illegal mining in our water-bodies.”

Prof. Douglas Boateng, Chairman of MIIF and interim Chairman of “Operation Clean the Water Bodies,” highlighted the urgent need for collective action:

“We created this problem, and only through collective effort can we fix it. The damage is vast, but with focused engineering initiatives, we can restore our rivers and prevent further harm.” He further added, “This initiative is not only about cleaning our water bodies but also about empowering communities to take ownership of their environmental stewardship. Together, we can build a future where our natural resources are preserved and cherished.”

“Success in this endeavour will require cooperation among all stakeholders, including local communities, government agencies, and civil society. We must unite to reclaim our rivers and secure a healthier environment for generations to come.” Professor concluded.

The Operation Clean the Water Bodies in partnership with UMAT, West Africa’s leading mining university marks a turning point in Ghana’s battle against galamsey pollution, providing a long-term, sustainable solution to one of the country’s most pressing environmental challenges. The long term operational success of Operation Clean the Water  however rests on a complete halt to illegal mining in Ghana’s water bodies.

For media inquiries, please contact:

UMaT – 0303940843

MIIF – 0302750660

At the 8th Ghana CEO Summit and the 2024 Africa Energy Technology Awards, the Minerals Income Investment Fund (MIIF) demonstrated its industry leadership with a series of prestigious recognitions. Chief Technical Officer Mr. Kwabena Barning received the CEO of the Year 2023/2024 Minerals Investment Award on behalf of the CEO Mr. Edward Nana Yaw Koranteng, highlighting the Fund’s exceptional management. 

… targets galamsey’s environmental havoc

The Minerals Income Investment Fund (MIIF) has placed Environmental, Social, and Governance (ESG) principles at the core of its investment strategy as it aims to transform the mining sector into the first pillar of the economy while ensuring long-term environmental sustainability.

Edward Nana Yaw Koranteng, Chief Executive of MIIF, outlined the fund’s commitment to ESG in a recent interview with the B&FT: “For MIIF, our investments, especially in mining, have a direct impact on the environment. This makes it crucial for us to have ESG as the pivot on which all our investments rest.”

Menace to society

The emphasis on ESG comes at a critical time for Ghana’s mining industry. The sector, particularly illegal small-scale mining, also known as ‘galamsey’, has been under scrutiny for its environmental impact, including the destruction of cocoa farms and pollution of water bodies.

The Ghana Cocoa Board (Cocobod) reports a 20 percent reduction in cocoa production over the past five years, primarily attributed to illegal mining activities. This has resulted in a significant economic loss for the nation, estimated to be approximately US$2.3 billion annually. Furthermore, the Forestry Commission has documented a loss of more than 2.5 million hectares of forest cover due to galamsey.

On August 31, 2024, the Ghana Water Company Limited in the Central Region blamed galamsey for recent water supply challenges in Cape Coast, Elmina, and surrounding communities. Additionally, on September 2, 2024, the company announced that it might have to close two major treatment plants in the Ashanti Region due to high turbidity levels, which have increased production costs.

Head-on

MIIF’s strategy aims to address these concerns head-on, recognizing that the future of mining in Ghana depends on sustainable practices. “If we want to invest in mining and make it the cornerstone of our economy, why would we invest and lose our ability to provide food, protect the environment, and safeguard our water bodies?” Mr. Koranteng questioned, stressing the interconnectedness of mining and environmental health.

MIIF, according to its CEO, is not merely paying lip service to environmental, social, and governance (ESG) principles. Instead, the organisation is actively implementing concrete policies that reflect its commitment to sustainability.

Every investment and programme undertaken by MIIF is evaluated through an ESG lens. This ensures that environmental considerations are a central part of all decision-making processes. One such initiative is the Small-Scale Mining Incubation Program, designed to formalize a sector that contributes significantly to Ghana’s economy. By focusing on traceability, environmental governance, and ESG principles, this program aims to improve the sustainability of legitimate small-scale mining operations.

MIIF’s approach to ESG aligns closely with government policies on mining sustainability, Mr. Koranteng added. This includes strict regulations for decommissioning mining sites and environmental bonding. Additionally, the organization is actively involved in supporting scientific attempts to clear the silted rivers as a result of illegal mining, advocacy and education efforts. “By promoting environmental awareness and understanding across various sectors of society, MIIF is working to build a broader consensus on the importance of sustainable mining practices,” he added.

The focus on ESG is not without its challenges. Some industry observers have argued that the battle for environmental sustainability in mining is an uphill one. However, Mr. Koranteng remains optimistic. “We have seen a critical mass of environmental advocates in Ghana now,” he noted. “So far as we have that growing, we have the advocacy, we have the influencers coming in, we have government policy support, we have companies like MIIF making sure its support to mining companies is premised on environmental sustainability. We will be able to shift.”

The impact of MIIF’s ESG-focused strategy extends beyond the mining sector. By prioritizing environmental protection alongside economic growth, MIIF is contributing to broader national goals of sustainable development and climate resilience, its CEO argued. The approach also aligns with global trends in responsible investing, potentially making Ghana’s mining sector more attractive to international investors who prioritize ESG considerations.

Koranteng emphasized that the success of this strategy will require a collective effort. “We need grit to be able to go through, but we need to have an emotional understanding of the impact of environmental degradation,” he stated. He called for broader engagement, suggesting that environmental sustainability summits should include students, universities, and primary schools to create a new generation of environmental advocates.

As Ghana positions itself to leverage its mineral wealth for economic development, MIIF’s ESG-centric approach could prove to be a crucial differentiator. By balancing the pursuit of mineral income with stringent environmental and social standards, Ghana has the opportunity to set a new benchmark for sustainable resource management in Africa.

Mr. Koranteng concluded with a message that encapsulates MIIF’s philosophy: “Our environment is our life. We make it analogous to degrading the environment to reducing our lifespan. When the last tree dies, the last man dies.”

The Minerals Income Investment Fund (MIIF) is banking on its Small-Scale Mining Incubation Programme (SSMIP), a comprehensive initiative, to reshape the domestic small-scale gold mining industry.

This sector, contributing approximately 40 percent of Ghana’s gold output and employing about 10 percent of the working population, has long been a critical yet challenging component of the country’s economy.

Edward Nana Yaw Koranteng, Chief Executive of MIIF, outlined the programme’s objectives in a recent interview. “The small-scale mining sector is a significant employer, outpacing even large-scale mining in job creation,” Koranteng stated.

“However, it is also where we face our most pressing environmental challenges, particularly with issues like galamsey (illegal mining),” he added. The SSMIP aims to address these challenges while boosting the sector’s productivity and sustainability.

The programme is structured around four primary channels of support: provision of working capital, assistance in purchasing environmentally sustainable mining machinery, support for corporate governance structures and responsible mining practices, and access to international markets through the MIIF Gold Trade Desk. This multifaceted approach seeks to address the complex issues facing small-scale miners in the country.

MIIF’s initiative comes as the environmental impact of unregulated mining activities has led to the destruction of cocoa farms and the pollution of water bodies, threatening both the ecosystem and the livelihoods of local communities. The SSMIP’s emphasis on environmental sustainability and responsible mining practices is crucial in this context.

The programme’s design involved extensive stakeholder engagement, including consultations with various government agencies and industry associations. From an initial list of 60 licensed small-scale entities, 10 have been selected for the pilot phase following thorough evaluations and site visits. A Technical Review Panel has recommended conducting Preliminary Economic Assessments on all entities to further de-risk the programme for investment decision-making.

Mr. Koranteng stressed the importance of public engagement in the programme’s success. “We need to create advocates from the public, communities, and schools to raise awareness about the consequences of environmental degradation,” he said. “If we’re not able to protect the environment, this is what we lose.”

He remains optimistic about the programme’s potential, noting the emergence of a critical mass of environmental advocates in the country.

“I am optimistic that we will win this battle, but MIIF cannot do it alone. It is a collective effort, and that is why we are actively advocating with miners, schools, and the general public.

“We need to paint a vivid picture of the devastating consequences of neglecting environmental protection. It is a challenging task, but with grit, understanding, and dedication, we can overcome it. This is a global issue, but we have a strong foundation in Ghana,” Mr. Koranteng explained.

“As we position ourselves to make mining a cornerstone of its economy, the SSMIP could serve as a model for other African countries grappling with similar challenges in their mining sectors. Its success will depend on effective implementation, continuous monitoring, and the ability to adapt to challenges as they arise,” he further stated.

MIIF since 2022 has successfully expanded the royalties net by working to include hitherto non-paying minerals such as medium scale gold, sand winning and salt.

The Minerals Income Investment Fund (MIIF) in 2023 defied all odds and the global economic downturn with a stellar financial performance in 2023 recording a net profit of GHC409 million from GHC205 million in 2022. The Fund also recorded an increase in revenue from GHC323 million in 2022 to GHC456 million in 2023.

“MIIF’s assets under management may increase to US$1.5 billion by end 2024 as it begins a revaluation of assets including Government of Ghana’s free carried interests”

According to the CEO of MIIF, Edward Nana Yaw Koranteng, MIIF is currently evaluating its assets including Government of Ghana’s equity interest in mining companies which should place the Fund’s total Assets Under Management (AUM) to around US$1.5 billion by end of 2024.

This is remarkable growth from a stated AUM of US$195 million in 2021 and will make MIIF one of the fastest growing specialty sovereign wealth funds in the world.

“The growth trajectory of the Fund is attributed to the hard work of the entire team at MIIF grounded in the vision of the president of the Republic of Ghana, Nana Addo Dankwa Akufo Addo to ensure that Ghana garners more value from its minerals.