Gold Fields Damang Mine – Opportunity for MIIF blueprint to increase Ghana’s stake in mining assets?

The Government of Ghana has officially taken over the Damang Gold Mine from Gold Fields, effective 18 April 2025 — a historic move that signals a bold shift in the country’s natural resource governance strategy.

While the initial decision to decline the lease extension drew mixed reactions, the transition of the asset into Ghanaian hands marks a watershed moment.

This is not merely about ownership — it is about agency, ambition, and the long-awaited opportunity to redefine Ghana’s relationship with its mineral wealth.

Why MIIF Matters

This evolving trajectory of Ghana’s resource strategy is best understood through the establishment of Ghana’s minerals sovereign wealth fund — the Minerals Income Investment Fund (MIIF).

Created in 2018 by Act 978, MIIF’s core objective is to maximize the value of royalties and dividends from the country’s mineral wealth by increasing the Government of Ghana’s equity interests and deriving optimal value across the entire mining value chain.

It must be emphasized that operating a gold mine requires continuous drilling, exploration, the adoption of new technologies, maximization of recovery, cost management, and high energy consumption. All of this demands significant long-term capital and technical expertise.

A complete nationalization of mineral assets, as some advocate, risks replicating the failures of similar efforts in the 1970s and early 1980s. Ghana must instead pursue increased stakes through deliberate policies — including international partnerships, capacity building, and the strategic use of MIIF’s financial strength.

MIIF’s Current Blueprint

Investment in Asante Gold Corporation of Canada

Ghana’s interest in Asante Gold Corporation stands at approximately 40% — the highest national stake in an international mining company since the divestiture implementation program of the early 1980s.

Since 2022, MIIF has invested in the Chirano Mine (formerly Kinross), the Mensin Bibiani Mine, and the non-producing Kubi Mine — all owned by Asante Gold Corporation. In partnership with the Ghana Infrastructure Investment Fund (GIIF) and the government’s compulsory Free Carried Interest, Ghana holds around 24% equity in the company.

A 2022 condition imposed by MIIF requiring all investee companies to list on the Ghana Stock Exchange has raised Ghanaian ownership in Asante to approximately 40%. Asante is now listed in Ghana, Germany, and Canada. Its assets — Kubi, Bibiani, and Chirano — are considered among the richest in West Africa.

Investment in Atlantic Lithium

MIIF is now the third-largest shareholder of Atlantic Lithium globally.

MIIF’s 2024 investment in Atlantic Lithium followed the Government of Ghana’s critical minerals policy and green transition agenda. The Fund’s two-pronged investment strategy included both the Australia-based holding company and its Ghanaian assets — referred to as the Cape Coast Portfolio — with Ewoyaa as the flagship project.

Described by industry figures such as Sir Sam Jonah and policy analyst Dr. Steve Manteaw as one of the best-negotiated mining contracts in Ghana, MIIF’s involvement granted it significant global equity and a 19% local stake in the Ewoyaa project. Atlantic Lithium, listed in Australia and London, also trades on the Ghana Stock Exchange as a condition precedent to MIIF’s investment.

Why Damang Matters

The Damang concession, located in the mineral-rich Western Region, is one of Ghana’s top-performing gold assets. With substantial remaining reserves, advanced infrastructure, and proximity to existing processing facilities, it represents a low-risk, high-reward opportunity.

This takeover gives Ghana a rare chance to operate a world-class gold mine under majority Ghanaian ownership — not just in principle, but in practice.

A Ghanaian-Led Mining Model

Deputy CEO of the Minerals Commission, Isaac Andrews Tandoh, described the Damang decision as a “clarion call” for Ghana to reset its extractive framework. His three-point proposal advocated for:

Prioritizing Ghanaian consortiums in future mining leases

Imposing a moratorium on foreign lease renewals

Establishing a Ghana Minerals Sovereign Fund to reinvest profits into mining communities

Given the existence of MIIF and its proven blueprint, this vision is not only realistic but immediately actionable.

MIIF’s Role in Damang

This is the moment for MIIF to evolve from a passive investor to an active operator or strategic investor in Damang. With a robust capital base, royalty income, and a diversified mining portfolio, MIIF can lead or anchor a Ghanaian consortium to manage the mine effectively.

In 2024, MIIF increased its revenue by 41% year-on-year, reaching GHC 1.3 billion and doubling its profit to GHC 409 million. The Fund also expanded its total assets under management to over US$1.2 billion in 2024, up from US$195 million in 2021 — positioning it among the fastest-growing mineral sovereign wealth funds globally.

The Missed Akyem Opportunity

Damang should serve as a stark reminder of the missed opportunity in the Newmont Akyem sale. The Akyem lease was set to expire in January 2025, presenting a similar opening for Ghana. The mine accounted for 14% of Ghana’s total gold exports in 2023 and has a projected life beyond 2040.

Despite MIIF’s public support for a Ghanaian-led consortium, including a US$100 million commitment toward a reported US$700 million bid, the asset was ultimately sold to a Chinese firm for approximately US$1 billion.

Ghana’s benefit from this sale will be limited to tax revenue. As former MIIF CEO Edward Nana Yaw Koranteng said in a November 2024 statement, “we lost our opportunity to dance with destiny.”

Conclusion: Damang Must Not Be Another Missed Dance with Destiny

It is imperative that the Ministry of Lands and Natural Resources, the Ministry of Finance, and MIIF collaborate on a clear strategy to ensure Ghana capitalizes on such opportunities. MIIF’s blueprint — investing across the mining value chain and requiring stock exchange listings — strengthens the financial sector and gives ordinary Ghanaians a stake in national resources.

Damang presents not just a gold mine, but a golden opportunity. Ghana must seize it — with clarity, courage, and commitment.