Can Chirano become the next Ghanaian champion?

On 6 April, Asante Gold Corporation announced that it had entered into discussions with Kinross Gold to purchase the Chirano gold mine. Behind the acquisition of this asset by a junior company lies an ambitious government initiative that seeks to create a new leader in the mining sector that will above all defend the interests of Ghanaians. This is precisely why the government, through the Ghana Infrastructure Investment Fund (GIIF) and the Mining Income Investment Fund (MIIF), will finance 100% of this acquisition.

Will Chirano become the new Springfield?

In his vision of Ghana Beyond Aid, President Akufo-Addo seeks to limit the country's dependence on foreign intervention. To this end, the government is encouraging the creation of local champions in the strategic extractive sector. In 2021, Ghana has seen many successes in this area, with the growing influence of Springfield, a Ghanaian junior oil company. On 23 July last year, the Accra Court ruled in favour of Springfield in a dispute with Italian oil major ENI. On 21 October 2021, the High Court of Accra dismissed ENI's appeal, ordering it to recognise the unitisation for the Sankofa and Afina fields. Another great victory for Ghana. Springfield, a Ghanaian company, thus ensures the country's long-term hydrocarbon supply. In the wake of this success in the oil and gas sector, the government is trying to reproduce this model in the mining sector with the acquisition of Chirano.

Chirano holds all the cards to succeed

With four Ghanaians on its management team, Asante Gold Corporation is as close as possible to the issues on the ground and the needs of the local communities. This is one of the reasons why the government is investing in this mine with Asante. Moreover, the junior is beginning to have a relatively significant portfolio of assets. After Kubi Gold in the south of the country and Bibiani in the west, Chirano completes the company's growing operational mines.

With the financial support of the government, Chirano has major advantages in terms of financial and technical expertise. The MIIF created in 2018 will play a leading role in the monitoring and management of Chirano. Composed of seasoned experts and closely linked to the powerful Ministry of Lands and Natural Resources, the MIIF is a strong ally for Chirano and a guarantee of success. Moreover, Chirano will be able to take advantage of the financial manna of this public fund, which should raise nearly 500 million dollars during the year to invest in the mining sector.

Many hopes are thus being built around Chirano, which could soon become a national champion, combining local experience, reinforced dynamism and strong resilience.