Strategic Investments and Operational Enhancements
The Managing Director of Prestea Sankofa Gold Mine (PSGM), Alhaji Ishaq Dauda, has announced that the company is investing GH¢8 million in the refurbishment of its processing plant. Additionally, the company is allocating US$3 million for the construction of a new tailings dam. These initiatives are part of a broader strategy aimed at boosting gold production, improving recovery efficiency, and strengthening operational capacity for long-term sustainability.
According to Alhaji Dauda, the processing section and tailings dam area are central to the company’s operations. Therefore, management has prioritized their upgrade without halting daily activities. He explained that most of the tanks used in the process are outdated, prompting the decision to refurbish them one at a time instead of shutting down entirely.
“We drain one tank, refurbish it, and then move on to the next,” he said. “There are eight tanks in total, and we expect the entire exercise to be completed by December.”
Once completed, the refurbishment is expected to increase the company’s production capacity by 50 percent and enhance recovery rates, allowing the mine to operate more efficiently and sustainably. Alhaji Dauda emphasized that maintaining the condition of the tanks is crucial for effective gold recovery.
“If the tanks are not in good shape, recovery becomes very poor, and we risk losing gold in the process. However, when everything functions well, we can trap and process more efficiently,” he added.
The refurbishment project also includes the installation of a new raw water tank, which is part of PSGM’s strategy to reposition the mine as a profitable and sustainable state-owned enterprise.
Improved Performance and Future Prospects
Alhaji Dauda highlighted the company’s improved performance, noting that monthly gold production has doubled from 25 kilograms to 50 kilograms since his assumption of office. He attributed this growth to ongoing maintenance, improved operational efficiency, and a renewed focus on quality production.
“Even as we work on the refurbishment, our minimum output is now 50 kilograms per month. Once we complete the tanks and the dam by December, our target is to reach at least 150 kilograms per month,” he said.
He also expressed optimism about the mine’s future, particularly given the current strong gold prices on the global market. “We are building buffers that will sustain the company, especially now that gold prices are high,” Alhaji Dauda stated. “Once we secure our own concessions, we are confident that Prestea Sankofa Gold Mine will remain profitable and resilient for years to come.”
Community Engagement and Development
Beyond operational improvements, the company continues to engage with and support its host communities. Alhaji Dauda highlighted recent social initiatives, including breast cancer screening exercises for 300 women in the Bondaye area where the company’s concession is located.
In collaboration with the traditional council, PSGM is also considering the construction of a community library to support education and literacy among schoolchildren in the area. Regarding employment, he noted that about 85 percent of current recruits—comprising graduate trainees and casual workers—are from local communities, underscoring the company’s commitment to inclusive growth and social responsibility.
“We always ensure that the people in our host communities benefit directly from our operations,” he stressed. “This builds trust and strengthens our relationship with them.”
Alhaji Dauda further mentioned that the mine maintains strict security measures to protect its concession against illegal mining activities, which continue to pose challenges for legitimate operators. “There are attempts by illegal miners to encroach, but we have put strong security arrangements in place to ward them off,” he added. “We act swiftly whenever such incidents occur to safeguard our operations.”
Securing Long-Term Sustainability
Prestea Sankofa Gold Mine was established in 1994 by Samax Mining Company, which later sold its shares to the Ghana National Petroleum Corporation (GNPC). It was incorporated to extract gold from historic mine tailings in the Prestea area. GNPC currently holds a 90 percent stake, with the Ghana government owning the remaining 10 percent.
Over the years, the company has experienced periods of inactivity but has recently undergone a significant revival under new leadership. The MD explained that while the mine currently relies on tailings operations, which have a lifespan of about five years, management is actively engaging stakeholders to secure additional concessions for hard rock mining.
“At a point, tailings alone will not be sustainable,” he said. “We need our own concessions to mine hard rock. That’s the company’s future and the key to long-term stability.”
So far, exploration work has defined approximately 400,000 ounces of gold, though the figure is expected to rise as further drilling continues. The company has already invested over US$3.5 million in exploration and preparatory activities to open up new mining areas.
“The exploration work is multi-generational. As we progress, we anticipate identifying additional resources that will extend the life of the mine,” he explained.
Looking Ahead
The MD pointed out that the ongoing refurbishment and expansion efforts signal a new chapter for Prestea Sankofa Gold Mine, positioning it to reclaim its place as one of Ghana’s leading state-owned gold producers.
He mentioned that through a combination of strategic investments, community partnerships, and responsible mining practices, the company is charting a path toward growth, profitability, and sustainability.
“Our focus is not just on production, but also building a mine that creates value for the community, our shareholders, and the entire nation,” Alhaji Dauda concluded.