The Minerals Income Investment Fund (MIIF) has announced a significant milestone in its asset portfolio, projecting its assets under management (AUM) to exceed US$1.5 billion.
The announcement was made by the Chief Executive Officer (CEO), Edward Nana Yaw Koranteng, during a media engagement in Accra, where he outlined the strides being made through revaluation efforts targeting Ghana’s mining equity interests.
Mr. Koranteng emphasized that MIIF’s revaluation efforts address a long-standing gap in the mining sector—the lack of comprehensive valuation of the government’s 10 percent equity interests in various mining ventures.
“If we add our current AUM of around US$520 million to US$600 million, we are looking at assets under management in excess of US$1.5 billion,” he stated.
This marks a significant departure from previous practices where the country’s mining equity interests were not fully appraised. Mr. Koranteng noted that an official announcement on the revaluation would follow the formalization of the process by a leading audit firm from the “Big Four.”
The projected increase in AUM is poised to boost MIIF’s capacity to undertake larger investment projects, thereby enhancing Ghana’s economic prospects.
According to Mr. Koranteng, the improved balance sheet will provide Ghana with leverage for international investments and open avenues for co-investment projects in the mining and broader extractive sectors.
“Having your AUM at US$1.5 billion speaks well of your balance sheet and expands the opportunities for Ghana. The Government of Ghana can leverage our balance sheet in many ways.”
Edward Nana Yaw Koranteng, CEO of MIIF
MIIF has recorded a remarkable 400 percent growth in AUM, from GH¢1.7 billion in January 2022 to GH¢8.7 billion as of the third quarter of 2024.
This surge is primarily attributed to royalty income and prudent investment strategies, as well as the fund’s concerted efforts to unlock untapped potential in unvalued equity stakes in major mining ventures.
The CEO highlighted the importance of diversifying MIIF’s investment portfolio, particularly reducing reliance on gold royalties, which currently constitute 95 percent of its revenues.
He revealed plans to explore investments in salt, graphite, and lithium, tapping into the growing demand for minerals critical to renewable energy and technology sectors.
Driving Local Participation in Mining
MIIF is committed to fostering greater local participation in Ghana’s mining sector. Among its initiatives is the listing of mining companies such as Asante Gold and Atlantic Lithium on the Ghana Stock Exchange (GSE).
This move is designed to provide Ghanaians with opportunities to own shares in these enterprises, enhancing domestic economic participation.
Additionally, MIIF is working to transform the small-scale mining sector through its Small-Scale Mining Incubation Programme (SMIP). This initiative aims to formalize the operations of small-scale miners by offering them access to modern machinery, governance structures, and direct markets for their gold.
Mr. Koranteng stressed the economic benefits of this approach, citing an estimated annual loss of US$2 billion due to informal mining practices.
“If we formalize this sector properly, the economic transformation could be significant,” he remarked, adding that the program has the potential to quadruple the contributions of small-scale mining to Ghana’s economy.
The SMIP initiative also seeks to address critical issues such as gold smuggling and underpricing by foreign intermediaries. By integrating small-scale miners into formal supply chains and potentially listing their entities on the GSE, MIIF aims to ensure that value derived from gold remains within the country.
The CEO expressed confidence that this approach aligns with MIIF’s broader agenda of economic transformation and sustainable development. “The economic transformation could be profound if small-scale mining is formalized and modernized,” he noted.
As MIIF continues to pursue innovative strategies to unlock the full potential of Ghana’s mining sector, the projected growth in assets under management signals a transformative era for the country.
Through revaluation efforts, diversification, and initiatives to formalize the small-scale mining sector, MIIF aims to create a more inclusive and sustainable mining industry that benefits all Ghanaians.
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