The Minerals Income Investment Fund (MIIF) has announced a groundbreaking achievement of generating $1.02 billion in revenue within 12 months through its gold trade desk.
This initiative represents a significant step toward formalizing Ghana’s small-scale mining sector, improving gold traceability, and providing a structured market for locally mined gold. Mr. Edward Nana Yaw Koranteng, Chief Executive Officer of MIIF, emphasized that the gold trade desk is central to MIIF’s broader goal of integrating the small-scale mining sector into the formal economy.
This integration is expected to enhance the sector’s contribution to national development while addressing long-standing issues like illegal mining and exploitation.
“The gold dory from the small-scale mining companies is sold to LBMA-certified refineries, ensuring global recognition as traceable gold. This not only adds a premium to Ghana’s gold but also helps curb the exploitation that has plagued the sector.”
Mr. Edward Nana Yaw Koranteng, Chief Executive Officer of MIIF
Small-scale mining contributes up to 40% of Ghana’s total gold output and employs more people than the cocoa industry. Despite its economic significance, the sector has historically struggled with issues such as lack of capital, illegal mining activities, and weak governance structures.
To tackle these challenges, MIIF has established the Small-Scale Mining Incubation Program (SSMIP) alongside the gold trade desk.
Mr. Koranteng explained that the lack of formal structures and funding leaves many miners vulnerable to exploitation, with foreign buyers purchasing gold at heavily discounted rates and without adherence to environmental or ethical guidelines.
MIIF estimates that Ghana loses approximately $2 billion annually due to unregulated small-scale mining activities. The gold trade desk is designed to formalize the sector, plugging these revenue leaks and potentially quadrupling its economic impact.
Additionally, the desk has contributed significantly to Ghana’s broader economic stability. Over the past year, it supplied $600 million to Bulk Distribution Companies (BDCs) for the importation of petroleum products, a critical intervention that stabilized the cedi and mitigated foreign exchange volatility.
“The trade desk’s activities provide ample evidence of how the strategic management of our mineral resources can impact the economy on a 360-degree scale,” Mr. Koranteng stated.
Mr. Koranteng noted that despite some forex-related losses in September, the gold trade desk has consistently delivered strong returns—8% on the dollar and 24% on the cedi—further showcasing its viability as a key economic driver.
MIIF’s strategy extends beyond immediate economic benefits, aiming to democratize access to Ghana’s mineral wealth. Plans are underway to launch a gold-backed Exchange Traded Fund (ETF), allowing ordinary citizens to invest in gold and enjoy returns indexed to the dollar.
“Through the ETF, Ghanaians will be able to own a piece of gold and enjoy returns indexed to the dollar,” said Mr. Koranteng, though the launch has been delayed by regulatory challenges.
Building an Integrated Ecosystem
MIIF envisions a fully integrated mining ecosystem where the gold trade desk feeds into the SSMIP, which in turn supports the ETF. This interconnected approach is designed to maximize the sector’s contribution to Ghana’s economy while empowering local stakeholders.
“Imagine a future where small-scale miners become well-run junior mining companies, listed on the Ghana Stock Exchange, and directly contributing to the formal economy. The ripple effects would be transformative.”
Mr. Edward Nana Yaw Koranteng, Chief Executive Officer of MIIF
To that end, MIIF is collaborating with the Ghana Stock Exchange (GSE) to list junior mining companies, providing Ghanaians an opportunity to invest in the mining sector and benefit from its growth.
“Gold that is traceable and mined under ESG principles commands a higher premium. This aligns with global best practices and ensures that our gold remains competitive in international markets.”
Mr. Edward Nana Yaw Koranteng, Chief Executive Officer of MIIF
The traceability mechanism also addresses environmental degradation and unethical practices, long-standing criticisms of the small-scale mining sector.
With its gold trade desk and related initiatives, MIIF is spearheading a transformation in Ghana’s mining sector. By formalizing small-scale mining, improving governance, and democratizing access to gold wealth, MIIF aims to unlock the sector’s full economic potential.
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