Fujairah Holdings, an investment fund from the UAE, has solidified its position in the global gold market with a $500 million deal to purchase gold from Asante Gold, a Canadian mining company operating in Ghana. The agreement, announced on December 19, underscores Fujairah’s commitment to gold as a strategic asset.
Details of the landmark deal
Under the agreement, Fujairah Holdings will purchase gold from Asante’s Bibiani mine at a 7 percent discount to market rates. The deal kicks off with an initial deposit of $100 million, with gold deliveries scheduled between March 28 and June 28, 2025. Over the following 22 months, Fujairah will make four additional $100 million deposits, ensuring a steady gold supply from Ghana’s rich reserves.
This transaction marks a significant milestone for Fujairah Holdings, which already holds a substantial stake in Asante Gold, making it the company’s second-largest shareholder. Despite a failed attempt to acquire Asante outright, Fujairah’s latest investment reflects its strategy of selective investments to generate long-term value.
Why gold?
Gold remains a cornerstone of Fujairah Holdings’ portfolio, valued for its stability as a reserve asset. The investment aligns with the vision of Hamad bin Mohammed Al-Sharqi, Fujairah’s ruler and founder of the fund. By securing discounted gold from Ghana, the Emirati fund aims to strengthen its financial footing and capitalise on the growing demand for the precious metal.
Boost for Ghana’s mining industry
This deal comes as a lifeline for Asante Gold, which is scaling up operations at its Bibiani and Chirano mines in Ghana. With production exceeding 200,000 ounces in 2023, the company aims to more than double this output to 500,000 ounces annually by 2028.
Fujairah’s infusion of $500 million will enable Asante to optimise mining activities, expand capacity, and contribute to Ghana’s economy, which relies heavily on gold as its leading export.
Strategic implications
While Fujairah Holdings has not disclosed specific reasons for the deal, industry experts suggest the fund is leveraging its existing stake in Asante to secure reliable gold supplies. The arrangement could also serve as a hedge against global economic uncertainties, further solidifying Fujairah’s status as a prominent player in the gold sector.
Asante Gold, for its part, gains a vital financial boost to drive its ambitious growth plans, including advanced mining technologies and sustainable practices.
A win-win partnership
The Fujairah-Asante partnership underscores a growing trend of international collaboration in Africa’s mining sector. With substantial financial backing from Fujairah, Asante is well-positioned to expand its production and maintain its standing as a key player in Ghana’s gold industry.
This $500 million deal not only strengthens ties between the UAE and Ghana but also highlights the enduring appeal of gold as a strategic asset in an uncertain world.
