The Institute of Economic Affairs (IEA) has called on the Ghanaian government to consider local investors for the upcoming sale of the Newmont Akyem Gold Mine, set to expire in January 2025. Highlighting national security concerns, the IEA advised limiting foreign investors’ stakes in the critical minerals sector to protect the country’s economic interests.
The IEA cautioned against a reported US$1 billion sale to Zijin Mining Group of China, describing the deal as flawed and contrary to Ghana’s interests. In a media statement, the Institute urged the government to prioritize local investment and negotiate favorable terms for the nation.
While the IEA is not opposed to foreign investment, it emphasized that Ghana should retain control over its mining sector to ensure that wealth generated benefits its citizens. The existing lease agreement with Newmont, signed in January 2010 for a 15-year term, allows for lease transfer only with mutual consent from the government and the company.
The IEA expressed concern over the lack of transparency regarding any agreement for the lease transfer to Zijin, noting that Newmont is obligated to return the mine to the government upon lease expiration. Any future operations must be based on a new agreement with the government.
Furthermore, the Institute proposed amendments to the Constitution to ensure that natural resources are vested in the state, requiring parliamentary ratification for significant contracts. It also suggested changes to the Minerals and Mining Act to prevent governments from signing high-value contracts in the final six months of their terms, aiming to safeguard against potential conflicts of interest and ensure accountability.
