Chamber of Mines challenges IEA claims over Gold Fields lease

By Kizito CUDJOE

The Ghana Chamber of Mines has strongly defended Gold Fields’ bid to extend its Tarkwa mining lease, accusing the Institute of Economic Affairs (IEA) of advancing “material factual inaccuracies” and policy proposals that could undermine investor confidence and destabilise one of the country’s most strategic industries.

This response follows a growing national debate over the future of the Tarkwa Mine, one of Africa’s largest open-pit gold operations, with the Chamber warning that attempts to reject the lease renewal on nationalist grounds risk reversing decades of mining sector reforms, weakening security of tenure and damaging Ghana’s reputation as a competitive investment destination.

The Chamber’s position follows a sustained campaign by the IEA calling on the government to reject Gold Fields’ reported application for a 20-year extension of the Tarkwa lease, which expires in April 2027.

Responding to the think tank’s latest claims at a press conference in Accra, the Chief Executive Officer (CEO) of the Chamber, Dr. Kenneth Ashigbey, said the IEA’s arguments rely on an incomplete reading of the mining sector’s history and advance policy prescriptions that are inconsistent with established evidence on resource governance. He argued that calls for the government to deny the renewal application overlook the historical role private investment has played in reviving the country’s mining sector after years of decline under state-led operations.

According to him, the Tarkwa Mine previously belonged to the State Gold Mining Corporation’s portfolio during the post-independence era of state ownership, but the sector experienced severe operational and financial deterioration over that period. “The facts are very clear. The mining sector almost collapsed during the period of extensive state control. Production declined sharply, there was chronic underinvestment, and operational inefficiencies became widespread,” he said.

He maintained that the liberalisation reforms introduced in the 1980s and the subsequent entry of private investors, including Gold Fields, played a critical role in repositioning Ghana as one of Africa’s leading gold producers. “Companies like Gold Fields invested substantial capital, technology and expertise into the sector. The transformation of Tarkwa did not happen by accident. It was driven by investment, operational optimisation and long-term confidence in Ghana’s mining industry,” he stated.

The Chamber noted that large-scale gold production in Ghana increased from about 216,000 ounces in 1983 to nearly 3 million ounces in 2025, describing the growth as one of the clearest indicators of the impact of investor-led reforms within the sector. It further argued that the expansion of the mining industry over the years has contributed to the development of a broader mining services ecosystem, positioning the country as a regional hub for contract mining, engineering services, equipment supply and technical consultancy across West Africa.

Dr. Ashigbey also pushed back against suggestions that the country derives limited value from large-scale mining operations, insisting that the fiscal contribution of the sector remains substantial. “In 2025 alone, the mining sector contributed approximately GH¢19billion in taxes to the Ghana Revenue Authority (GRA), representing nearly 23 percent of direct domestic tax collections. These are not insignificant contributions,” he said.

On Tarkwa specifically, he disclosed that the three principal mining companies operating within the enclave, Gold Fields, Ghana Manganese Company and AngloGold Ashanti’s Iduapriem Mine, collectively paid about GH¢5.1billion in taxes in 2024. “That single enclave contributed about 7.3 percent of total direct domestic taxes collected by the GRA. Few localities in Ghana contribute at that scale,” he added.

The Chamber also defended Gold Fields against claims that mining communities have seen little developmental benefit from decades of extraction, pointing to investments made through the Gold Fields Ghana Foundation.

According to the Chamber, the Foundation has invested nearly US$110 million in community projects since 2002, covering roads, health, education, agriculture, water and sanitation initiatives within host communities. Among the projects cited were the 33-kilometre Tarkwa-Damang road project, the rehabilitation of major community roads, the expansion of the Apinto Government Hospital, and investments in youth training and education programmes.

Dr. Ashigbey, however, argued that the persistent underdevelopment of some mining communities reflects broader structural weaknesses in the country’s mineral revenue distribution framework rather than an absence of corporate contribution. “The real question is how mineral revenues are distributed and utilised after they are paid to the state. Mining companies pay taxes and royalties, but local development also depends on how those resources are allocated and managed,” he stated.

He reiterated the Chamber’s long-standing proposal for at least 30 percent of mineral royalty revenues to be directly allocated to mining communities to support infrastructure and local development.

Adamus Resources and matters arising

Meanwhile, the Chamber also addressed recent developments surrounding the revocation of mining leases held by Adamus Resources Limited by the Ministry of Lands and Natural Resources.

While acknowledging the gravity of the Minerals Commission’s findings on alleged breaches of mining regulations, the Chamber stressed the importance of due process and adherence to statutory procedures in regulatory enforcement actions. “We believe regulatory enforcement must always be firm, lawful and consistent with due process. The credibility and competitiveness of Ghana’s mining industry depend not only on compliance, but also on predictability and respect for the rule of law,” Dr. Ashigbey said.

The Chamber welcomed ongoing engagements between the government and Adamus, including the establishment of a ministerial committee to review the company’s petition challenging the revocation of its leases. It also cautioned that developments surrounding the Adamus matter could have implications for employment and host communities if not carefully managed.

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