The Chief Executive Officer of the Ghana Chamber of Mines, Ing. Kenneth Ashigbey, has challenged claims by lawyer Kofi Bentil that Gold Fields acquired the Tarkwa Mine for a mere US$30,000.
The CEO of the Chamber describes the said figure as a misleading representation of the broader financial commitments and investments associated with the mine.
The disagreement follows a social media post by Kofi Bentil, who shared an extract from the mining lease between the Government of Ghana and Gold Fields, drawing attention to Clause 20, which provides for a US$30,000 consideration fee.
Kofi Bentil argued that Ghana effectively handed over a highly valuable mine for a paltry amount, despite the mine’s reported earnings of about US$30 billion over three decades.
He further claimed that the mine’s infrastructure had already been developed under the former State Gold Mining Corporation before Gold Fields took over, and called for the cancellation of the company’s lease.
However, Ing. Ken Ashigbey argues that focusing on the US$30,000 provision without considering the wider transaction, subsequent leases and investment history presents an incomplete picture of the mine’s development.
The US$30,000 Figure and the Wider Payments
According to the CEO of the Chamber of Mines, Ghana has historically used standard mining lease agreements for companies seeking mineral rights, meaning the consideration provision in Gold Fields’ lease was not an exceptional arrangement created specifically for the company.
He argues that the provision should not be interpreted as the total amount paid by a mining company to secure and operate a mineral concession.
Other payments, he explains, include application and processing fees, annual mineral rights fees, ground rent and other statutory charges that may not be captured in the consideration clause.
He therefore disputes the suggestion that the US$30,000 represented the full consideration paid by Gold Fields. He says the company paid US$3 million in 1992 and 1993 to access information relating to the then underground Tarkwa Mine.
He further points out that Gold Fields currently operates under six mining leases, five of which, according to his account, were issued in 1997 rather than in 1993 when the company took over the mine.
From Underground Operations to a Major Open-Pit Mine
Ing Ashigbey further argues that the value of Gold Fields’ contribution should be assessed against the transformation of the operation.
He says the underground mine inherited by the company was loss-making and produced between 12,000 and 24,000 ounces of gold annually. Gold Fields subsequently invested in establishing the mine’s open-pit potential, processing infrastructure and modern production facilities.
These included heap-leach plants and a Carbon-in-Leach processing plant, which Mr Ashigbey describes as among the most efficient globally, with gold recovery rates exceeding 97 to 98 per cent.
The company’s own profile says it has invested approximately US$5 billion in capital and more than US$50 million in exploration at Tarkwa over three decades, transforming production from about 12,000 ounces annually to an estimated 500,000 ounces.
The Bigger Question for Ghana
The CEO further indicates that the mine’s development has supported Ghanaian employment, technical expertise and local businesses, including companies that have emerged around the mining ecosystem.
He was, however quick to add that this stance does not mean Ghana should ignore the need to secure better terms from the operation.
He believes that the debate should rather focus on how can the country obtain greater value from its mineral resources while recognising the capital, technology and expertise required to develop large-scale mines.
