The Institute of Economic Affairs (IEA) has urged the government to reject plans to extend the mining lease of Gold Fields Ghana for the Tarkwa Mine, insisting that Ghana must take strategic control of one of its most valuable mineral assets, when the current lease expires in April 2027.
At a news conference addressed by former Chief Justice, Sophia Akuffo, former Speaker of Parliament, Mike Oquaye and Board Chairman of the IEA, Dr. Charles Mensah, the Institute argued that Ghana now has the capacity and expertise to manage the mine in its national interest.
The IEA maintained that renewing the lease would undermine Ghana’s long-term economic and strategic goals, stressing that the country must use the expiration of the current agreement as an opportunity to secure greater national ownership of its natural resources.
“The IEA considers the requested lease renewal deeply inimical to Ghana’s long-term economic and strategic interests and, therefore, calls on government to reject it decisively,” the Institute stated.
According to the Institute, the Tarkwa Mine remains the flagship asset of Gold Fields and one of the most productive gold mines on the continent.
The mine, which was acquired by Gold Fields in 1993, reportedly produces about 500,000 ounces of gold annually, with an estimated market value of more than US$2.3 billion at current global prices.
The IEA noted that Ghanaian operations contribute nearly a quarter of Gold Fields’ global production portfolio, making the Tarkwa concession strategically important to the multinational mining company.
“It is, therefore, unsurprising that the company would deploy every available avenue, including high-level lobbying, to preserve its hold over the concession,” the statement added.
Gold Fields is seeking a renewal of five key mining leases tied to the Tarkwa operations and has formally requested a minimum 20-year extension from the Government of Ghana.
However, the IEA argued that after decades of foreign control over Ghana’s mineral resources, mining communities continue to see little improvement in their living conditions.
The institute pointed to poor roads, weak healthcare systems, inadequate schools and persistent poverty in many mining areas, despite years of intensive mineral extraction.
“The operations of Gold Fields in Tarkwa exemplify the enduring consequences of extractive concession arrangements that overwhelmingly favour foreign corporations at the expense of host communities and the national economy,” the statement said.
The institute further argued that Ghana now possesses enough technical expertise to independently manage the Tarkwa Mine if the lease extension is denied.
It cited the contribution of the University of Mines and Technology in producing skilled mining engineers, geologists and industry professionals over the years.
The IEA also highlighted the growing role of indigenous mining companies such as Engineers & Planners and Rocksure International in executing major mining operations in the country.
According to the institute, many operational activities at the Tarkwa Mine are already being undertaken by Ghanaian mining service providers.
In defending its position, the IEA referenced international legal frameworks that uphold the sovereign rights of nations over their natural resources, including United Nations General Assembly Resolutions 1803 and 3281, as well as provisions under the African Charter on Human and Peoples’ Rights.
“Article 21(1) of the African Charter expressly provides that under no circumstances shall a people be deprived of the right to freely dispose of their wealth and natural resources in their exclusive interest,” the institute noted.
The institute linked Ghana’s recurring economic difficulties to weak domestic revenue mobilisation and the continued export of raw resources with limited local value addition.
It argued that despite numerous programmes with the International Monetary Fund since independence, Ghana’s dependence on borrowing persists because the country has failed to fully harness revenue from its natural resources.
“To unlock the full developmental potential of these resources, Ghana must pursue a model based on national ownership, responsible extraction, local value addition and the export of finished or semi-finished products capable of generating significantly higher revenues,” the statement said.
The IEA consequently called on government, Parliament, traditional authorities, labour unions, civil society groups and the wider Ghanaian public to resist any attempt to renew the lease agreement with Gold Fields.
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