The Institute of Economic Affairs (IEA) has advocated for significant constitutional amendments aimed at protecting Ghana’s natural resources, following the reported US$1 billion sale of Newmont’s Akyem gold mine to China’s Zijin Mining Group. The IEA has raised concerns about the deal, describing it as “flawed in several respects,” and inimical to the country’s long-term interests.
The IEA notes in a press release dated October 21, 2024, that the project lease was signed between the Ghana Government and Newmont on 19th January 2010 and has an expiry period of 15 years, i.e. valid until 19th January 2025. According to the terms, the lease is transferable within the duration period, subject to mutual agreement between the Government and Newmont.
The lease is also subject to extension after its expiry date, by mutual agreement. As the lease has not yet expired, any decision by Newmont to sell the mine must be on a transfer basis and must be for the unexpired term only and subject to Government agreement.
The IEA argues that the reported sale of the Akyem gold mine lacked transparency and did not sufficiently involve Ghanaian stakeholders. It has called for more stringent oversight of deals involving the country’s natural resources, ensuring that such transactions are transparent and in line with the national interest.
“Ghana needs a complete paradigm shift in its mineral contracts by taking ownership of the minerals to create job opportunities, wealth, and technical-capacity development for Ghanaians,” the IEA noted.
The sale of the mine to Zijin Mining Group, a Chinese company, has raised concerns about foreign ownership of Ghana’s strategic resources. The IEA warns that such deals could lead to a loss of control over vital national assets and limit the country’s ability to fully benefit from its natural resources.
In light of the sale, the IEA is pushing for constitutional reforms that would strengthen the legal framework governing the management and sale of Ghana’s natural resources. The institute argues that these reforms are necessary to protect Ghana’s sovereignty over its resources and ensure that the benefits derived from these assets are equitably shared with the Ghanaian people.
The IEA has particularly criticized the deal as being “flawed,” stating that it fails to adequately protect Ghana’s economic and environmental interests. The institute has called for renegotiations or a reassessment of the deal to ensure that the country is not disadvantaged in the long term.
The IEA emphasized that Ghana’s natural resources should be managed in a way that prioritizes the national interest and ensures long-term economic benefits for the country. The institute is calling for parliamentary review and the inclusion of safeguards that prevent foreign entities from exerting undue influence over the country’s most valuable assets.
“Finally, the IEA wants to make two fundamental proposals to help introduce sanity into the governance of Ghana’s natural resources and to reduce corruption. The first is to amend Article 257(6) of the Constitution that vests Ghana’s natural resources in the President on behalf of, and in trust for, the people, which seems to give him a carte blanche to sign the resources away at will. The second is to introduce in the Constitution or the Minerals and Mining Act, 2006 (Act 703) a provision that prohibits Government from signing contracts above a specified monetary value six months to the end of their four-year term.”
