The Managing Director of Prestea Sankofa Gold Limited (PSGL), Alhaji Ishaq Dauda, has disclosed that the company is investing GH¢8 million in refurbishment of its processing plant.
In addition, the company is investing over 3 million dollars for the construction of an ultramodern tailings dam.
He said these new moves form part of the mine’s broader strategy to boost gold production and improve recovery efficiency, while strengthening its operational capacity for long-term sustainability.
According to him, the processing section and dam area form the heartbeat of the organisation; hence, management’s decision to prioritise their upgrade without halting operations.
“Most of the tanks are very old, so we decided to refurbish them one after the other instead of shutting down completely,” he explained. “We have eight tanks – we drain one, refurbish it, hand it over, and move to the next. The exercise is expected to be completed by December.”
He noted that the refurbishment, once completed, will increase the company’s production capacity by fifty percent (50%) and enhance the recovery rate, while helping the mine operate more efficiently and sustainably.
He emphasised that maintaining the tanks in good condition is crucial to the company’s output.
“If the tanks are not in good shape, recovery becomes very poor, and we risk losing gold in the process. But, when everything functions well, we can trap and process more efficiently,” he said.
He continued, “The refurbishment project, which also includes the installation of a new raw water tank, is part of PSGL’s strategy to reposition the mine as a profitable and sustainable state-owned enterprise.”
Alhaji Dauda made the disclosure during a tour of the facility at Prestea in the Prestea Huni-Valley District of the Western Region.
Community engagement and development
Beyond operational improvements, the company continues to engage 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.
He revealed that PSGL in collaboration with the traditional council, is also considering the construction of a community library to support education and literacy among schoolchildren in the area.
In terms of employment, he said about 85 percent of current recruits—comprising graduate trainees and casual workers—are from the 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”, he added.
Alhaji Dauda further mentioned that the mine maintains strict security measures to protect its concession against illegal mining activities, which continue to pose challenges to 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”, he added.
Prestea Sankofa Gold Limited was established in 1994 by Symex Mining Company, which later sold its shares to the Ghana National Petroleum Corporation (GNPC).
GNPC currently holds a 90% stake, with the Government of Ghana 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.
Alhaji Dauda 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 future of the company and the key to long-term stability”
So far, he said exploration work has defined approximately over 400,000 ounces of gold, though the figure is expected to rise as further drilling continues.
The company has already invested over US$3. million in exploration and preparatory activities to open up the new mining areas.
“The exploration work is multi-generational,” the MD explained. “As we progress, we anticipate identifying additional resources that will extend the life of the mine”.
Highlighting the company’s improved performance, Alhaji Dauda said that Prestea Sankofa’s monthly gold production has doubled from 25 kilograms to 50 kilograms in recent months upon his assumption of office as MD
He attributed this growth to ongoing maintenance, improved operational efficiency, and a renewed focus on cost controlled backed quality production as the leadership direction.
“Even as we work on the refurbishment, our minimum output is now 50 kilograms per month”, he noted.
“Once we complete the tanks and the dam by December, our target is to reach at least 150 kilograms per month”, he added.
He added that management remains optimistic 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 Limited will remain profitable and resilient for years to come”.
Looking Ahead
The MD pointed out that the ongoing refurbishment and expansion efforts signal a new chapter for Prestea Sankofa Gold Limited, positioning it to reclaim its rightful 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 renewed path towards growth, profitability, and sustainability.
“Our focus is not just on production”, Alhaji Dauda concluded, “but on building a mine that creates value for the community, our shareholders, and the entire nation”.