Prestea Sankofa Gold Limited (PSGL), a state-owned subsidiary of the Ghana National Petroleum Corporation (GNPC), has secured a strategic partnership with Chinese investment firm Guangzhou Hozdo Group in a move expected to revive the struggling mining company and position it for long-term growth.
The partnership comes at a time when the company is grappling with significant operational and infrastructural challenges, including aging and heavily deteriorated equipment, production setbacks, and environmental concerns associated with its old tailings dams.
The entry of Guangzhou Hozdo Group is expected to provide the financial backing, technical expertise and equipment support needed to modernize operations, improve efficiency and unlock new opportunities for expansion.
Western Regional Minister Joseph Nelson has welcomed the development, describing it as a major boost for both the company and the region’s economy.
Speaking during a visit by the investors, he said Prestea Sankofa Gold Limited had endured years of difficulties and expressed confidence that the new partnership would help restore the company’s fortunes.
“As Regional Minister, my priority is to support struggling enterprises and help them attract the investment they urgently need. This partnership offers a real opportunity for the company to recover and contribute meaningfully to national development.”
The optimism surrounding the partnership is further strengthened by ongoing restructuring efforts within the company.
Managing Director Alhaji Ishaq Dauda disclosed that since assuming office, Management has undertaken significant improvements to prepare the mine for future growth. These include the replacement of critical processing infrastructure such as Carbon-in-Leach (CIL) tanks and the construction of a modern tailings dam to enhance environmental management and operational efficiency.
He noted that despite the absence of production over the past five months, the company has consistently paid workers’ salaries, marking a significant departure from previous shutdown periods when employees often went unpaid.
According to him, Management is now focused on redesigning existing systems and integrating hard-rock mining into the company’s operations. The planned expansion will require additional equipment to complement the current processing facilities and is expected to significantly boost production capacity.
The partnership with Guangzhou Hozdo Group is therefore expected to play a critical role in providing the resources required to execute these plans and transform PSGL into a more competitive and sustainable mining operation.
By Eric Yaw Adjei
