There is still a window of opportunity for the government to acquire a stake or ensure enhanced local participation in the recently sold Newmont Akyem Mines.
Newmont says the sale is part of its strategy to divest some non-core assets following its merger with Newcrest in Australia. The mine has been sold to a leading Chinese mining company, Zijin Mining Group, for a total fee of $1 billion.
The deal is set to be completed in the first quarter of 2025.
Given the profitability and potential of the Akyem Mine, Chairman of the Parliamentary Committee on Public Administration and Member of Parliament for Pru East, Dr. Kwabena Donkor says he expected the government to take an interest in acquiring stakes or facilitate local participation in the mines.
However, despite President Akufo-Addo’s promise during this year’s State of the Nation’s Address to ensure that Ghanaian investors and entities are prioritised in the sale, the mine has been sold to a Chinese.
Disappointed by the development, Dr Kwabena Donkor in an exclusive interview with The High Street Journal, revealed that although the mine has been sold, the state can still intervene in the transaction to ensure local participation.
“The President alluded to this in the State of the Nation’s Address this year and promised that his government will ensure that Ghanaians get a bite of this. Unfortunately, as we speak that has not happened,” he noted.
He added that, “the bulk of the asset is being sold to a Chinese group for $900 million immediately and a possible additional $100 million subject to certain conditions.”
The MP explains that the capacity of the state as the owner of the asset gives the government the leverage to renegotiate the deal in the interest of local participation. He further revealed that the government can even negotiate with the Chinese for a stake for local investors.
Since the state is the owner of the asset and will give the final approval of the transaction, the MP says the government can take advantage to redeem its earlier promise if it is willing.
Dr. Kwabena Donkor says even though the opportunity has diminished, there is still room for the government to “insist on getting some additional equity before approving the sale to the Chinese entity. We can always explore that option if we are willing. Even with the Chinese, tell them that look, we will approve this if 10 or 20% of what you are willing to pay goes into local participation.”
“If you are selling a country’s assets, remember you only have a lease. You don’t own the asset. So the regulatory body representing the government will have to approve. That is standard in the extractive industry. There is still the opportunity, even though diminished. Until the government gives its stamp of approval, there is always the opportunity to negotiate,” he argued.
The former Minister for Power under the erstwhile NDC administration is convinced that there exists technical expertise and financial capacity locally to participate in the Akyem Mines.
Other experts also share the sentiments of Dr. Kwabena Donkor that it is time for Ghanaians to enjoy and benefit from our mineral resources by pulling resources together to own a stake in a profitable mine such as the Akyem Mines.
