Business

MIIF Urged to Combat Gold Smuggling and Boost Value Addition

Ghana’s Deputy Minister for Lands and Natural Resources, Hon. George Mireku Duker, has called upon the Minerals Income Investment Fund (MIIF) to join forces with key ministries to tackle the illicit gold smuggling trade. Speaking at the Second MIIF Stakeholders’ Forum in Accra, Duker emphasized the need for a robust system to track and curb gold smuggling, which is estimated to cost Ghana US$2 billion annually in lost tax revenue.

Duker, a former Board Chairman of MIIF, stressed the importance of collaboration with the National Security Ministry, Lands, and Finance Ministries to sanitize the mining sector. He noted that the trend of unchecked mineral exports affects the economy and encourages illegal mining, known locally as “galamsey.”

To maximize Ghana’s mineral resources, Duker highlighted the significance of value addition. He explained that countries with advanced technologies refine minerals into valuable products, benefiting immensely from these resources. Ghana, rich in minerals, must develop its own value addition capabilities.

The government has taken steps to address this challenge by establishing statutory agencies such as the Ghana Integrated Aluminium Development Corporation and the Ghana Integrated Iron and Steel Development Corporation. Additionally, the Royal Gold Ghana Refinery, in which Ghana holds a 20% stake, aims to process gold ore produced in Ghana before export.

Duker praised MIIF’s investments, particularly in the Ada Songhor Salt project, and urged the Fund to partner with the Ghana Geological Survey to establish a mineral exploration fund and develop downstream value-addition industries. This would accelerate the development of the mining value chain and support Ghana’s economic growth.

MIIF’s CEO, Edward Nana Yaw Koranteng, announced plans to leverage technology to expand the Fund’s royalty base, targeting US$6 billion in the next decade. Koranteng expressed optimism about exceeding this goal, aiming for US$10 billion. By working together to combat gold smuggling and boost value addition, Ghana can unlock the full potential of its mineral resources.

Ruth Abla ADJORLOLO

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