Mining - Deriving Greater Value for Africa in an Era of Record Gold Prices and Geopolitical Tensions

An Exclusive Interview with Edward Nana Yaw Koranteng - Former Chief Executive Officer of the Minerals Income Investment Fund of Ghana by Wilberforce Asare, a broadcast Journalist in Accra, Ghana. 

 Q:  You predicted late 2023 at various mining stakeholder conferences that the gold price will cross $3000 per ounce, what are the key factors influencing the price of gold? 

Thank you. The current trend is mainly influenced by a combination of global macroeconomic trends, geopolitical issues, and central banks positioning:  

What made me predict the cross over was the way these issues are all interlocked. The global economy post covid was still grappling with supply chain constrictions which did not lead to quick recovery for the global economy contributing to high inflation trends, then there was the Ukraine / Russia war with attendant sanctions which pushed a number of countries to increase their central bank gold purchases as a derisking mechanism, then trade tensions which in my view also increased the appetite for gold from central banks worldwide all in a bid to hedge against the uncertainty brought about by these developments.

Gold has always been seen as a hedge against inflation, currency devaluation and a safe haven when there is global economic uncertainty. The current gold price trend is a measurement of how deep these issues are today. 

Q: Do you see the gold price trajectory continuing, and how can African gold-producing countries take advantage of the situation?

It may continue if the factors driving the trajectory remain. I am, however, of the view that we may see central banks slowing the pace of purchases as the need for liquidity starts rising and the cost of accumulation at US$3000 and above starts biting.

We have seen a reduction in purchases from the central banks, especially from H1 2024, with countries such as Turkey selling off gold for liquidity. Mind you, Turkey has been in the top 5 buyers of gold over the past 3 years. I believe we may see very sharp falls in the gold price if the main geo-political drivers such as the USA/Chinese trade war is addressed. 

For African gold producing countries such as Ghana, these are among the best times in history. Ghana’s domestic gold purchase program which covers purchases from both large-scale miners and small-scale miners at negotiated prices gives an advantage in bolstering reserves.

 Ghana can also realise the listing of the proposed gold-backed ETF to deepen the capital markets and provide investment alternatives to investors especially the pension funds. The South African GLD, which is a gold backed ETF listed on the JSE in South Africa and on the Ghana Stock Exchange has returned over 300% in the past four years on the GSE. 

In Zimbabwe, a gold backed digital token is helping stabilise its currency. In South Africa we are seeing the use of blockchain to track gold supply chains called the SAPMR system which can be utilised to trace legitimate gold. This can be utilised to help formalise the small-scale gold mining sector in countries such as Ghana, Mali, Burkina Faso, Liberia and Sierra Leone. This is really the time for African gold producing countries to use the windfall to develop the sector by increasing equity along the value chain and investing in value addition.

Q. Critical minerals, especially Rare Earth Elements (RRE), have become the subject of geo-political tensions, especially between China and the USA. How does China’s monopoly create opportunities for Africa within this context.

The geo-political tensions can make Africa an alternative supply source for the west. Even though China controls about 80% of rare earth and processing, including the processing of lithium, Africa’s critical minerals sector remains very untapped and underdeveloped. 

Several African countries are seeking capital to unlock this potential. Ghana, Mali, Ivory Coast, Nigeria, Zimbabwe, Angola are said to hold huge untapped critical mineral deposits such as lithium while countries such as Guinea, Ghana, Congo, South Africa are said to hold huge potential in critical minerals such as manganese, bauxite, cobalt, graphite and nickel. .

Q. You once described lithium and critical minerals as the “currency of the future”. Why so?

Critical minerals such as lithium are going to be increasingly vital for security and strategic industrial interests. This is already panning out in the trade war between China and the USA where critical minerals such as RRE have become a critical piece in trade negotiations. 

Demand for critical minerals such as antimony, lithium, cobalt, rare earths, copper is driven by what i call the four pillars - energy transition, technology, industrial policy and security. These four pillars, on the back of current global tensions will be the bedrock of western policies which will drive the direction of capital in the critical minerals sector. 

We have seen a few policies in this vein, such as the EU critical raw materials Act, the US Inflation Reduction Act and the export restriction policy from China which will all underpin the drivers. 

The seeming silent trend of de-globalisation will push energy transition, industrialisation, a technology race including space technology and security at the forefront of major economies’ and in my view will essentially direct capital and leverage towards critical minerals in the coming years. It is projected that demand for battery minerals such as lithium, cobalt and graphite could grow by 500% on the back of energy transition dynamics in the next twenty-five years.

Q. The precious minerals such as gold and critical minerals have cyclical risks. What will you say are the main differentiation features?

I think gold has fewer cyclical risks because of its safe-haven features and therefore not as closely tied to global manufacturing or supply chain cycles compared to critical minerals. Critical minerals such as lithium, in my view are, more cyclical as they are tied to technology shifts, manufacturing, potential substitutes, the adoption of new technologies such as EVs and nature of offtake contracts among others. 

Q. Do you consider ESG as vital for mining investors in Africa and why?

Certainly. We must not compromise on ESG as mining directly affects people, land, water and social cohesion. It is even more important, and premium must be placed on ESG when investing on the continent. ESG must be integrated into all investment models and must be an integral part of risk management and government policies.

Q. in 2024, you led Ghana’s first Lithium Investment negotiation as CEO of MIIF, which was described by many as the best negotiated mineral contract in a long while. What are the main features of this agreement and any lessons for the continent?

In summary, the agreement covered two fronts. The investment in Atlantic Lithium holding company in which we acquired shares representing 3.1% at a negotiated strike price, making MIIF the third-largest shareholder in Atlantic Lithium globally. The second part was an investment in the local asset comprising, seven tenements including the world class Ewoyaa discovery in Ghana’s central region for $27.9 million. 

In terms of the fiscal, we negotiated the acquisition of 6% of the local asset subject to the additional condition that Atlantic Lithium lists on the Ghana Stock Exchange. We further negotiated an increase in Ghana’s free carried interest from 10% to 13% thereby increasing Ghanaian interest to about 22%; we negotiated that 1% of the gross revenue was to be allocated to a community development fund for the community and we negotiated royalties to be paid to the state from the current 5% to 10%.

The objective of the lithium investment is to support Ghana’s energy transition and industrial goals, aiming to make Ghana the battery hub of West Africa. In view of this, we ensured that no raw lithium was to be exported and had to be processed in country; MIIF or the government was to have the right to participate in the offtake of up to 40% of the processed spodumene on commercial terms. 

Other terms covering beneficiation were to have the lithium further refined in the country, subject to a comprehensive feasibility report, to also develop the by-product of lithium called feldspar, which will feed the fibre glass and ceramic industry in Ghana, and to ensure that the value delivery supply chain aligns with the local content policy of Ghana.

As regards lessons for Africa, the agreement projects a delicate balance between state equity participation and foreign and domestic investments; derisking for investors; investment in value addition along the entire value chain and using such agreements to deepen the capital markets and allow citizens to have a stake in a resource by listing on the stock exchanges. 

Q: Talking of Sovereign Wealth Funds, you are the immediate past CEO of the Minerals Income Investment Fund of Ghana (MIIF) which during your tenure was touted globally as an excellent initiative by an African Government. Do you think sovereign wealth funds are essential for African countries within the current global economic milieu?

Yes, I believe sovereign wealth funds are essential for African mining countries. SWFs are long-term plays with investment horizons between 5 and 11 years. It’s a simple equation of turning finite mineral resource wealth into long-term economic buffers and development channels — which is, using funds from today’s finite mineral reserves to invest in long-term opportunities, thereby creating generational wealth and financial resilience. 

MIIF, for example, increased its assets under management from $125 million in 2021 to about $1.0 billion at the end of 2024. This can even reach $1.8 billion as envisaged in 2023, if the re-evaluation of the government of Ghana's equity interest in all mining companies, which began in October 2024, is completed. In 2022, MIIF outperformed its benchmarked S&P 500 index by about 13%, and in 2024, it increased its profits by 300% to GHS1.906 billion, with free cash of GHS5.6 billion, making it one of the fastest-growing mineral funds in the world.

African countries can replicate this, especially given the high gold prices and the growing importance of critical minerals. It is however important that such SWFs are designed well, have a clear purpose guided by an investment policy guideline, must have strong governance systems, a transparent reporting model, must align with the country’s development agenda and must be insulated from political interference.

Some sovereign wealth funds, which started over 40 years ago, are now key growth cogs for their respective economies. In 2024, for example, the GPFG of Norway reported an AUM of about $1.4 trillion and totally finances Norway’s welfare system.

Q. At the start of the year 2025 there were questions raised on investments made under your tenure as CEO of MIIF. What are your thoughts on this and what were some of the investments you made during your tenure. 

Investments by MIIF or any SWF require extensive due diligence and analysis. The investments are also long term in outlook aimed at increasing Ghanaian interests and creating generational wealth. 

 In terms of significant investments, we invested $40 million in Asante Gold Corporation of Canada covering the Mensin Bibiani mine which prior to the acquisition by Asante had been non-operational for more than ten years and the Chirano gold mine. As part of the conditions, Asante listed on the Ghana Stock Exchange which together with investments from the Ghana Infrastructure Fund increased Ghanaian interests to 43%.

As of September 2025, the value of MIIF’s stake had increased by about 100%, with both mines performing relatively well. 

We also invested in Atlantic Lithium, which owns the Ewoyaa lithium discovery, and as part of the conditions, compelled Atlantic to list on the Ghana Stock Exchange. In view of MIIF’s investment in the holding company which made MIIF the third largest shareholder globally, MIIF stands to gain on the potential of Atlantic’s latest lithium discoveries in Ivory Coast in Agboville and Rubinho. MIIF has not yet disbursed its investment in the local asset which is the Ewoyaa project as the lease is subject to parliamentary ratification before production can start. The ratification was a condition precedent to disbursement.

We also invested in the Ada Songhor Salt project, which is currently under lease to Electrochem Ghana, towards the creation of Africa’s largest salt production enclave, with the potential to bring in revenue of US$500 million per annum to Ghana and the potential to export over one million tons per annum. MIIF invested as 100% preference shareholders with the preference shares to be converted to equity at a 10% discount upon the listing of Electrochem by 2026 on the Ghana Stock Exchange. The listing of the company on the Ghana Stock Exchange is a condition subsequent.

With over 14,000 uses, including the production of textiles, pharmaceuticals, food preservatives, caustic soda, etc., salt is an important industrial raw material for which Ghana has been trying to develop over the past 50 years. With a potential 41,000 acres, Ada Songhor dwarfs the largest salt production facility in sub–Saharan Africa, the Walvis Bay Namibia which is 16,700 acres.

At the time of my departure, we had developed an investment pipeline which included the graphite discoveries in Northern Ghana, and the Toronto listed Newcore Gold Mine in the Western region of Ghana for about 9% of the company. Newcore is slated to start gold production in 2027. 

Apart from investments, MIIF also developed a gold trading program, which was based on a revolving trade line of $30 million and realized over $1.0 billion in forex receipts within 12 months. It is expected that the Goldbod’s operations will improve on what we started and generate sufficient receipts to support the economy.   

Q. Despite Africa holding a significant number of global mineral resources, Africa seem not to be at the forefront in mergers and acquisitions (M&A) activities globally. How can Africa position itself?

Although there is still a wide gap between Africa’s actual position and potential when it comes to M&A we have seen a flurry of M&A activities over the past five years across Africa.

Global M&A activities in mining over the past 5 years is estimated to be around $350 billion of which I will estimate Africa to be around $60 billion over same period. For example, South Africa between 2020 and 2025 has M&A activities estimated to be about $18 Billion covering over 35 mining deals. 

M&A activities in Ghana over the past five years is estimated to be more than $5billion. In Zambia we have seen the Mopani Copper transaction in 2024 at about $1.1 billion and the $2.2 billion Endeavour and Teranga deal covering assets in West Africa. This is set to grow as investment platforms such as the proposed Africa Minerals and Commodity Fund comes into play in 2026 and entities such as Africa Finance Corporation provides channels to such opportunities across the continent.

Q. Finally what are your thoughts on the current wave of asset nationalisation in some parts of Africa

I personally don’t think resource nationalisation ends well. I am an advocate for what i term resource indigenisation. Resource nationalisation is about governments taking control of mining assets and attempting to operate and manage these assets. This has never really been successful anywhere as governments often lack the capacity to operate and manage such operations. 

Resource indigenisation is when domestic policies allow indigenous private investors and domestic capital to be the fulcrum of the mining resources. For example, Ghana’s local content policies make it law for all contract mining to be undertaken by Ghanaian contractors while a greater number of supplies to mining companies down to the micro level must come from local suppliers.

Government’s role is to provide buffers and create the necessary environment for the private sector to thrive and this must be deliberate. Sovereign wealth funds for example, can be co-investment vehicles to both local and foreign direct investors. 

This balanced approach, where the aim is to increase indigenous interests across the value chain, also creates a level of certainty which allows for patient capital from DFIs, private equity funds, etc, to come in which further creates investment incentives for the domestic capital market, pension funds, and for banks to support the sector. 

This is how industries are developed. The mining sector must help grow the capital markets; it must create locally owned mining champions along the value chain. Through such indigenization, the sector fosters co-operation with foreign direct investors, creates jobs, and develops a skill pool, thereby creating a circle of excellence. This is how we make mining the first pillar of the economy. It is not by nationalisation of mining assets. Thank you