Chifeng Gold Group secures $90m to transform Wassa Mine

Chifeng Jilong Gold Mining Limited has secured a $90 million funding to upgrade, embark on exploration and expand Golden Star Resources Mines at Wassa.

It will be invested in exploration works, upgrading of their operations by purchasing more equipment to reduce carbon emissions and also for future expansion and extension of the life of the mines.

The funding was secured through a full guarantee from the Stanbic Bank Ghana and Standard Bank South Africa.

The Chairman and Chief Executive Officer (CEO) of Chifeng Gold Group, Mr Wang Jianhua, disclosed this in an interaction with the media during his first visit to Ghana after the successful acquisition of Golden Star Resources Limited.

The Wassa Mine of Golden Star Resources concession was sold to Chifeng Jilog Gold Company, a Chinese mining firm, after a deal was reached on January 28, 2022.

Chifeng is an international gold mining company listed on the Shanghai Stock Exchange with a market capitalisation of approximately $3.7 billion.

The company’s flagship asset is in Laos in Southeast Asia.

Mr Jianhua noted that the company leveraged on the assets of the Group by using group bond to secure the loan for the Ghana project.

He was optimistic that the $90 million investment would extend the life of the mine as well as increase output.

He said with the acquisition, the Group wants to do more to improve on their operations and would collaborate with all stakeholders to build a stronger company that will benefit all.

Mr Jianhua stated that already, the company had invested heavily in the country, including the acquisition, “and it is ready to commit more investments”.

He expressed confidence in the competence and capabilities of his team to deliver and serve stakeholders, saying, “l am very confident that we will not make any decisions that will affect and undermine the local management of the company.”

“One of my key priorities is to ensure that Wassa Mine continues to develop and that we remain a trusted and valued partner for all our stakeholders,” he indicated.

He assured that Chifeng would promote environmental governance in a friendly manner and grow together with the community so that more people would benefit from the development of Wassa Mine.

Mr Wang noted that the management of the company “is building a business for the next generation” and would do everything to succeed.

He said he decided to invest in Ghana because former UN Secretary-General Dr Kofi Annan was his role model.

In addition, having worked in various capacities in the mining sector in Africa for several years, he said Ghana is the best in the league when it comes to investment climate