Ghana must renew Gold Fields Tarkwa Lease but under terms beneficial to the state, says Ing. Kenneth Ashigbey, CEO of the Ghana Chamber of Mines.
The company has invested approximately US$5 billion in capital and over US$50 million in exploration at Tarkwa over the past three decades. Five of its six mining leases are due to expire in April 2027.
The renewal should be an opportunity to negotiate a stronger national value proposition, says Ing. Ashigbey. This means carefully examining the fiscal terms, royalty arrangements, local procurement commitments, employment and skills transfer, environmental obligations, community development and the mine’s long-term investment plans.
Ing. Ashigbey argues that the country must also recognise the investments made by Gold Fields and the importance of maintaining confidence in long-term mining agreements.
Ghana’s handling of Gold Fields’ lease renewal could have implications beyond the mining industry, says Ing. Ashigbey.
Confidence in the security of mining leases is important not only to international companies but also to Ghanaian-owned businesses and other investors operating in capital-intensive sectors. The government has already indicated that renewal will not be automatic and that Gold Fields’ operational and development plans must be reviewed.
Ing. Ashigbey’s position is that Ghana should not approach the lease renewal solely as an opportunity to revisit historical payments.
Rather, the country must assess what the mine has become, the investments required to sustain it and the value that can be secured for the future. The company’s record of investment and its contribution to transforming the mine provide a basis for considering an extension, provided the negotiations secure terms that are more beneficial to the state.
The Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, will play a key role in the negotiations. The outcome will have significant implications for Ghana’s economy, particularly in the mining sector.
Ing. Ashigbey’s call for a renewal of the lease on terms beneficial to the state is a step in the right direction, says the Ghana Chamber of Mines.