Prestea Sankofa Gold Limited (PSGL), a state-owned subsidiary of the Ghana National Petroleum Corporation (GNPC), has entered into a strategic partnership with Chinese investment firm Guangzhou Hozdo Group to revitalise its mining operations and support long-term growth.
The agreement is expected to provide the struggling company with the financial resources, technical expertise, and modern equipment needed to address longstanding operational challenges and restore production capacity.
PSGL has in recent years faced significant difficulties, including ageing infrastructure, deteriorating equipment, production setbacks, and environmental concerns linked to outdated tailings dam facilities. The new partnership is expected to help resolve these constraints and improve operational efficiency.
Western Regional Minister Joseph Nelson has welcomed the development, describing it as a timely intervention that could significantly strengthen both the company and the regional economy. During a visit by the investors, he noted that PSGL had endured prolonged operational challenges and expressed optimism that the partnership would help restore its viability.
He stated that his office remains committed to supporting struggling enterprises to attract the investment required for sustainable recovery and growth, adding that the deal presents a meaningful opportunity for the company to contribute to national development.
The Managing Director of PSGL, Alhaji Ishaq Dauda, also expressed optimism about the partnership. He disclosed that since assuming office, management has undertaken several restructuring initiatives aimed at preparing the mine for future expansion.
These efforts include the replacement of key processing infrastructure such as Carbon-in-Leach (CIL) tanks and the construction of a modern tailings storage facility to improve both environmental management and operational performance.
Although the company has not been in production for the past five months, management has continued to pay staff salaries, a move described as a departure from previous shutdown periods when workers often went unpaid.
Looking ahead, management plans to redesign existing systems and integrate hard-rock mining into operations. This expansion will require additional equipment and infrastructure upgrades, which are expected to significantly increase production capacity.
The partnership with Guangzhou Hozdo Group is therefore expected to play a central role in financing and supporting these expansion plans, with the ultimate goal of transforming PSGL into a more efficient, competitive, and sustainable mining operation.
Source: 3news.com
