IEA wants Newmont Akyem Gold Mine sold to local investors

The Institute of Economic Affairs (IEA) has made a recommendation to the government. They suggest considering local investors for the Newmont Akyem Gold Mine sale. The current lease with Newmont expires in January next year.

The IEA raised national security concerns. They advised limiting foreign investors' involvement in critical minerals. This is to protect Ghana's economic interests and national security.

They cautioned against selling the mine to Zijin Mining Group from China. This deal, reported by Business Times on October 9, 2024, is valued at US$1 billion. The IEA believes this deal is flawed and not in Ghana’s interest.

In a media statement on Monday, the IEA urged the government to prioritize Ghanaians. They recommend negotiating favorable terms with local investors. While they support foreign investments, they want Ghana to maintain control over its mining sector.

The existing lease agreement with Newmont was signed on January 19, 2010. It has a validity of 15 years and will expire on January 19, 2025. The agreement allows lease transfer only with mutual consent from both parties.

The IEA stated that any sale must follow these conditions and apply only to the unexpired lease term. Newmont must return the mine to the government after the lease ends. Any new operator must negotiate a new agreement post-January 2025.

However, the IEA noted they are unaware of any agreement for transferring the lease to Zijin Mining Group. They also mentioned that Newmont has not sought an extension of their lease.

The Institute proposed amending Article 257(6) of the Constitution. This article currently gives the President control over Ghana’s natural resources without checks. They believe resources should be vested in the state instead.

Every contract should require Parliamentary ratification as per Article 268(1). Additionally, they suggested amending the Minerals and Mining Act of 2006 (Act 703). This amendment would prevent governments from signing significant contracts during their last six months in office.

They believe this change would stop administrations from making last-minute deals for personal gain or favoring friends and family.