The Institute of Economic Affairs (IEA) has expressed strong reservations about the sale of Newmont’s Akyem Gold Mine Project to China’s Zijin Mining Group for $1.0 billion, citing concerns that the deal undermines Ghana’s interests. According to the IEA, Newmont and the Ghanaian government have not reached an agreement on the sale, which is slated to take place before the lease expires on January 19, 2025.
The IEA emphasizes that the lease, signed in 2010, is transferable only within its duration period and requires mutual agreement between the government of Ghana and Newmont. Moreover, any company seeking to operate the mine after the lease expires must sign a new agreement with the government.
The think tank also criticizes the rejection of bids from Ghanaian firms, which allegedly were outbid by Zijin. This move contradicts President Akufo-Addo’s earlier statement that Ghanaian investors would be given priority in acquiring the mine.
The IEA argues that Ghana needs to reassess its mineral contracts to prioritize local ownership, create jobs, and stimulate economic growth. By maximizing benefits from its natural resources, Ghana can accelerate development and alleviate poverty.
Newmont’s sale of the Akyem Mine is part of its strategy to divest non-core assets, with the transaction expected to close in the fourth quarter of 2024. However, the IEA’s concerns highlight the need for greater scrutiny of foreign investments in Ghana’s mining sector.
Ruth Abla ADJORLOLO
