As the public campaign against the renewal of Gold Fields mining lease for Tarkwa intensifies, driven in part by xenophobic tensions in South Africa, natural resource governance expert Dr. Steve Manteaw is urging Ghana to separate emotions from economics.
He is cautioning the government to avoid decisions that could undermine the long-term national interests in the extractive sector.
Dr. Steve Manteaw recognizes that while the growing nationalist sentiment is understandable, the debate over the future of one of Ghana’s largest gold mines should be guided by economic strategy rather than reactions to developments outside the country.
“Most views expressed so far seem more informed by the current happenings in South Africa, and sheer nationalistic sentiments rather than well-reasoned economic imperative and strategy. Yes, the gold belongs to us, and by that right of ownership the greater share of the value ought to be retained within the Ghanaian economy,” he noted.
In his views, Ghana might be biting more than it can chew if it goes on the nationalistic and sentimental tangents and refuse to renew the lease of Gold Fields.
“Let’s not bite more than we can chew,” he cautioned.
He argues that although Ghana possesses the technical expertise to manage its mining sector, the country still faces significant financial constraints when it comes to funding large-scale mining operations.
He pointed to recent challenges in the mining industry, including the takeover of Bogoso-Prestea from Blue Gold over financial performance concerns, as evidence that access to capital remains a critical hurdle.
For Dr. Manteaw, the solution is not to shut the door on foreign investors but to negotiate a better deal for Ghana.
He is advocating the renewal of Gold Fields’ lease while using the opportunity to secure a meaningful equity stake in the Tarkwa mine through the Mineral Income Investment Fund (MIIF). Such an arrangement, he argues, would allow Ghana to earn a direct share of production in addition to existing taxes, royalties and carried interest, while still benefiting from foreign capital and investment expertise.
“My position is that, we should renew the license. Afterall even richer countries canvass for foreign direct investments. We should however, seize the opportunity to acquire equity in the mine,” he noted, stressing that Ghana should focus on increasing local value capture rather than pursuing outright ownership without the necessary financing.
Dr. Manteaw also warned that the lease debate should not overlook the strategic partnerships supporting Ghana’s efforts to secure London Bullion Market Association (LBMA) certification, a key step toward retaining more value from the country’s gold exports.
He noted that Gold Fields, through its affiliate Rand Refinery, is working alongside the Ghana Chamber of Mines to help develop the technical infrastructure needed for Ghanaian refineries to meet international standards.
Dr. Manteaw’s intervention is a note of caution in an increasingly heated national conversation. He rather believes that instead of terminating the contract, Ghana must use the opportunity to seek greater benefits from its mineral wealth.
However, it must do so in a way that strengthens, rather than jeopardises, investment, production, and long-term value creation.
