The Minerals Income Investment Fund (MIIF) is set to see its assets under management (AUM) exceed $1.5 billion, according to Chief Executive Officer Edward Nana Yaw Koranteng.
During a media engagement in Accra, he linked this growth to ongoing revaluation efforts of mining assets, particularly the government’s 10 percent equity stake in various mining operations.
Koranteng noted that the country’s mining equity interests have never been fully assessed, a gap MIIF aims to fill. “Our internal revaluation indicates that we could surpass $1.5 billion. When we combine our current AUM of approximately $520 million to $600 million, we anticipate assets exceeding $1.5 billion,” he explained.
An official announcement will follow the formal valuation process conducted by one of the Big Four audit firms.
This projected increase in AUM is expected to strengthen MIIF’s ability to participate in larger co-investment projects, thereby expanding Ghana’s investment landscape. “Having $1.5 billion in AUM reflects positively on our balance sheet and opens up numerous opportunities for Ghana. The government can leverage our balance sheet in various ways,” Koranteng added.
Since January 2022, MIIF has experienced a remarkable 400 percent growth in AUM, rising from GH¢1.7 billion to GH¢8.7 billion by the third quarter of this year. This growth has been primarily fueled by royalties and investment income, alongside significant untapped potential in unvalued free-carried interests in key mining assets.
Koranteng emphasized the importance of diversifying investments to mitigate the volatility of gold prices. “Currently, 95 percent of our royalties stem from the gold sector, but we need to branch out,” he said, identifying opportunities in minerals such as salt, graphite, and lithium.
MIIF is also focused on promoting local participation in the mining sector. The listing of mining companies like Asante Gold and Atlantic Lithium on the Ghana Stock Exchange (GSE) is seen as a crucial step towards enabling Ghanaians to invest in these firms.
Additionally, MIIF is committed to revitalizing the small-scale mining sector through its Small-Scale Mining Incubation Programme (SMIP). This initiative aims to formalize and support small-scale miners by providing essential machinery, governance frameworks, and market access for their gold, reducing reliance on foreign intermediaries that often purchase gold at discounted rates.
“If we can effectively formalize this sector, the economic transformation could be significant,” the CEO remarked, noting an estimated annual loss of $2 billion due to informal practices. He believes that proper formalization and the listing of small-scale mining entities on the GSE could quadruple their contributions to the economy, aligning with MIIF’s broader goals for transformation.
