(Ecofin Agency) – Of the same name as one of the Federated States of the United Arab Emirates, Fujairah Holdings is an investment fund present in the mining sector. It is one of the shareholders of Asante Gold, a Canadian company which operates the Bibiani and Chirano gold mines in Ghana.
The Emirati company Fujairah Holdings has reached an agreement with Asante Gold to ultimately purchase $500 million in gold from it. This is the announcement made on December 19 by the Canadian mining company, which specifies that the gold sold will come from its Bibiani mine in Ghana.
Fujairah has made an initial deposit of $100 million and will receive corresponding gold deliveries from March 28, 2025 to June 28, 2025. Four further advance deposits of the same amount will then be made over a 22-month period, each time followed by deliveries gold. Note that Fujairah will benefit from a reduction of 7% compared to the price of gold on the market at the time of deliveries.
No details were given on the reasons which pushed Fujairah to sign this contract. Founded by Hamad bin Mohammed Al-Sharqi, ruler of the Emirate of Fujairah, Federated State of the United Arab Emirates, the company has already shown its interest in Ghanaian gold, by unsuccessfully attempting to buy Asante Gold. Fujairah is also the current second shareholder of the Canadian company and indicates on its website its intention to invest “in highly selective opportunities to create exclusive and long-term values for shareholders“. Gold can be a key asset in this strategy, since the yellow metal is a recognized reserve asset.
Fujairah's investment is expected to help Asante continue to ramp up its operations in Ghana. Outside of Bibiani, the company operates the Chirano gold mine in the country and is targeting annual production of 500,000 ounces by 2028, compared to just over 200,000 ounces in 2023.
Emiliano Tossou
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02/11/2024 – Ghana: gold producer Asante Gold wants to raise $75 million on the local market
05/08/2023 – Ghana: Asante Gold opens negotiations for a takeover by the Emirati Fujairah
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