Management of the Minerals Income Investment Fund (MIIF), the custodian of Ghana’s future mineral revenues, says there have been erroneous assertions made in the media about the fund and its purpose.
The Public Relations Unit of MIIF, in a statement, noted that the MIIF was formed by Parliament pursuant to the Minerals Income Investment Fund Act, 2018 (Act 978), with the key objective of maximizing the value of Ghana’s income from its mineral wealth for the benefit of Ghanaians.
It is also to maximize the minerals’ income in a sustainable and responsible manner with the aim to ensure that Ghanaians fully benefit from the wealth that is created in the mining sector.
According to the statement, the purpose of MIIF is to hold and manage the equity interests of the Government of Ghana in mining companies, receive mineral royalties due to government from mining operations, provide for the management and investment of the assets of the fund, finance further development of the mining sector, and monitor and improve flows into the mining sector.
“Regardless of who is in power, the MIIF is the custodian of Ghana’s future mineral revenues in terms of the MIIF Act,” the statement noted and added that the powers of MIIF included the creation of a special purpose vehicle (SPV) in any jurisdiction in furtherance of its objectives, and the listing of the SPV on any reputable stock exchange that MIIF considers appropriate.
It said, currently, MIIF is the sole shareholder of Agyapa Royalties, a SPV that is expected to be listed on the London and Ghana Stock exchanges.
The Agyapa Royalties, the statement added, would acquire a portion of the royalty, rent and other income from a number of gold assets in Ghana, which it indicated, comprises 12 producing gold mines and four development assets – most of which are owned and run by major international gold mining companies.
The statement pointed out that the purpose of listing Agyapa Royalties Limited is to allow government through the MIIF to raise non-debt capital to invest in the country without further increasing Ghana’s national debt portfolio.
“The issue of equity in the company is 100 per cent-owned by the Minerals Income Investment Fund,” it disclosed and continued that it is a new and innovative way the government is using to raise funds that can be invested for the benefit of Ghanaian citizens into the future.
According to the statement, the government is seeking to raise a significant amount of funds from the listing of Agyapa Royalties Limited and will also expect to receive regular annual dividends in the future from Agyapa Royalties Limited, which will be reinvested in the country to finance strategic capital investments, such as economic infrastructure to spur socio-economic development and enhance the lives of all Ghanaians. Ghana must invest in itself and build a future through investment, not aid.
“What is very important to remember is that MIIF will remain as the majority shareholder of Agyapa Royalties Limited. This means it will retain majority shareholder control and receive the majority of the company’s dividends when declared and paid.
“Lastly, Ghana has always been and will always be a leader on the continent. This is but the latest example of our ability to be forward-thinking. We are the first government to implement this transformational and innovative way to raise funds,” the statement intimated.
It said this was a pioneering template for Africa on how to achieve value add-on exports. It is the intention of Agyapa Royalties Limited to be an African royalty company and to leverage Ghana’s position as the leading gold producer in Africa to build an African royalty portfolio.
By Ernest Kofi Adu