Amid the intense public debate and campaign over the future of Gold Fields Ghana’s mining lease at Tarkwa, the company says it believes it has built a strong and compelling case for renewal.
Despite the divided public opinions, Gold Fields believes that, based on its long-term investments, contribution to national development, and compliance with Ghana’s mining laws, it has distinguished itself for the renewal.
Speaking on the sidelines of WAMPEX 2026, Vice President for Gold Fields, Michael Edem Akafia, explained that renewing the lease is not merely about one company retaining a mining right, but about preserving investor confidence and ensuring the sustainability of Ghana’s mining industry.
“One of the things we believe sincerely is that we’ve put together a compelling case for an extension of the Gold Fields Tarkwa lease,” he noted.
Security of Tenure Drives Long-Term Investment
According to Michael Edem Akafia, one of the most important principles underpinning mining investment worldwide is security of tenure.
He explained that mining companies commit billions of dollars to long-term projects because they have confidence that their investments will be protected and that they will have the opportunity to continue operating if they meet the conditions of their leases.
Without that assurance, he argued, investors would be reluctant to undertake major capital projects or make long-term commitments. He therefore pointed out that Gold Fields, in recent years, has committed billions in investment to expand the life of the Tarkwa Mine.
“Between two to three years ago, we started investing extensively to extend the life. An extension of a life is something you must spend money on drilling. Drilling is very expensive. If you look out there at the exhibition stands, those big machines there are those things that you spend doing that drilling. Yes, you can just do your own investigation about the cost of doing that investment,” the VP of Gold Fields narrated.
This investment, Gold Fields believes, must count in the renewal process.
Gold Fields’ Impact Beyond Mining
To illustrate the wider economic benefits of mining investment, Edem Akafia pointed to the growth of a Ghanaian-owned energy company that initially built dedicated power facilities to serve Gold Fields’ operations.
According to him, the company is now a success story on account of Gold Fields’ contract with it. The local company has expanded its activities by constructing a gas pipeline from Atuabo and investing in a gas processing plant. The company is eventually growing into a multinational business with power projects beyond Ghana’s borders.
He argued that such success stories demonstrate how the company’s operations are stimulating the growth of other local businesses and sectors of the economy.
The Law Supports Lease Renewal
Michael Edem Akafia, who is also a lawyer, maintained that Ghana’s mining laws were specifically designed to provide certainty for investors. He referenced provisions within the Minerals and Mining Act, which state that where a leaseholder has fulfilled the material conditions of its mining lease, an extension should ordinarily be granted unless specific grounds exist for refusal.
According to him, the law’s emphasis on continuity is intended to encourage responsible investment and protect the long-term nature of mining projects.
“If you look at section 44.3 of the Minerals and Mining Act, it says expressly there that if you’re a mineral rights holder and you’ve met the material conditions of your mining lease or your mineral rights, the minister shall extend,” he quoted.
He added, “In fact, one of the other things that affirms the fact that the law is designed to ensure security of tenure is that the law itself says that if you put in your application and for whatever reason your mineral rights pass before you hear from the minister, you are allowed to continue mining. You see that law is ensuring continuity. In fact, the law also spells out very limited grounds for rejection of an application for renewal.”
The Need to Avoid “Fly-by-Night” Investors
The Gold Fields executive warned that uncertainty over lease renewals could attract short-term operators interested only in extracting high-grade minerals for quick profits.
By contrast, he said established mining companies tend to think long term because they expect to remain in host communities for decades, making them more likely to invest in sustainability, community development, environmental stewardship and mine expansion.
“If you don’t ensure security of tenure, you would attract the kinds of investments we call the fly-by-night investors who come into your jurisdiction knowing that they’ll not get a renewal, mine high-grade, and then just leave without making a big impact,” he cautioned.
Ghana Still Needs Foreign Capital
The VP further argued that mining remains one of the most capital-intensive industries in the world and that Ghana currently lacks the level of domestic capital required to independently finance large-scale mining projects.
He noted that domestic capital formation is around 10%. This is highly insignificant for the industry, considering the highly capital-intensive nature of the sector.
As a result, he believes Ghana still needs foreign investors like Gold Fields to inject the needed capital to keep the sector alive and working for the country.
“It’s a capital-intensive industry, so you can’t do it by yourself. Our capital formation in Ghana is around 10%, some say 8%. We don’t have that capacity and capital here to do that kind of long-term capital. You have to look externally again, so why do we then pretend as if we can act as an island to ourselves and develop our mineral assets?” he noted.
The Bottomline
While critics argue that Ghana should seek greater control and value from its mineral resources, Gold Fields maintains that its track record, investments and contribution to the economy provide strong justification for an extension.
For the company, the issue ultimately boils down to the need for security of tenure and investor confidence. According to Gold Fields, the assurance that legitimate investments will be protected remains critical to sustaining growth, jobs and long-term development in Ghana’s mining sector.
