Prestea Sankofa Gold Limited (PSGL) is committing GH¢8 million to refurbish its processing plant as part of efforts to enhance gold production and operational efficiency.
In addition, the company is investing over US$3 million in the construction of a modern tailings dam.
Managing Director Alhaji Ishaq Dauda stated that the initiative forms part of a broader strategy to strengthen the mine’s production capacity and secure long-term sustainability.
He indicated that the processing unit and tailings facility represent the heartbeat of PSGL’s operations, warranting priority upgrades without halting production.
“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.”
Upon completion, the upgraded plant is expected to increase production capacity by up to 50 per cent, improve gold recovery, and reduce operational losses. The refurbishment also includes installation of a new raw water tank.
“If the tanks are not in good condition, recovery becomes very poor and we risk losing gold in the process,” he noted. “When everything functions well, we can trap and process more efficiently.”
Alhaji Dauda disclosed this during a facility tour at Prestea in the Prestea Huni-Valley District of the Western Region.
Community engagement and social commitment
Beyond production upgrades, PSGL continues to invest in host communities. The company recently supported breast cancer screening for 300 women in Bondaye and is considering establishing a community library in partnership with traditional authorities.
Alhaji Dauda emphasised that about 85 per cent of new employees, including graduate trainees and casual workers, are sourced locally.
“We always ensure that people in our host communities benefit directly from our operations,” he said. “This builds trust and strengthens our relationship with them.”
He added that the mine has instituted strict security measures to deter illegal mining activities, which remain a persistent threat.
Strengthening foundations for long-term stability
Established in 1994 and now majority-owned by the Ghana National Petroleum Corporation (GNPC), PSGL has experienced operational interruptions over the years but is currently undergoing revitalisation.
Although the mine is presently processing tailings with an estimated five-year lifespan, management is pursuing concessions for future hard-rock mining. Over 400,000 ounces of gold have been identified through exploration, with US$3 million already invested in preparatory works.
“At a point, tailings alone will not be sustainable,” the MD noted. “We need our own concessions to mine hard rock. That is the future of the company.”
Rising output and optimistic outlook
Gold production has doubled from 25kg to 50kg per month under Alhaji Dauda’s leadership, supported by maintenance works and improved operational controls. The company targets a minimum of 150kg monthly output once the refurbishment and dam construction are completed.
“We are building buffers that will sustain the company, especially now that gold prices are high,” he explained. “Once we secure our own concessions, PSGL will remain profitable and resilient for years to come.”
Looking ahead
Alhaji Dauda affirmed that the ongoing transformation signals a new dawn for PSGL. Through strategic investment, community partnerships and responsible mining practices, the company aims to establish itself once more as a leading state-owned gold producer.
“Our focus is not just on production,” he concluded. “We are building a mine that creates value for the community, our shareholders and the nation.