IEA, Chamber of Mines split over Tarkwa lease extension

By Kizito CUDJOE

A sharp disagreement has emerged over the future of Gold Fields’ flagship Tarkwa Mine, exposing growing tensions between calls for greater Ghanaian control of strategic mineral assets and concerns over investor confidence in the country’s mining sector.

The dispute follows calls from the Institute of Economic Affairs for the government to reject Gold Fields’ reported application for a 20-year lease extension, arguing that Ghana should seize this “historic opportunity” to reclaim ownership and strategic control of one of Africa’s largest gold mines.

But the Ghana Chamber of Mines has cautioned that public pressure surrounding the renewal process risks undermining legal certainty, regulatory predictability and Ghana’s reputation as a stable and competitive mining investment destination.

At a press conference themed ‘Put National Interest First! Do not renew Gold Fields’ Tarkwa mining lease: Contract the Ghanaian private sector’, the IEA stated that the proposed lease extension, ahead of the April 2027 expiration, would be “deeply inimical to Ghana’s long-term economic and strategic interests.”

The think tank argued that the government should prioritize a framework that ensures meaningful Ghanaian ownership and control of the Tarkwa Mine, one of Africa’s largest open-pit gold mines.

Led by former Chief Justice Sophia Akuffo, the IEA said Ghana has little transformative development to show after decades of allowing foreign firms to exploit its mineral resources under what it described as concessionary arrangements rooted in the colonial era. “The persistent underdevelopment of mining communities, coupled with the disproportionately low fiscal returns accruing to the state from the extractive sector, reflects the structural inequities embedded within the prevailing mining regime,” she said.

The IEA further argued that communities within the Tarkwa enclave continue to struggle with poor roads, inadequate healthcare infrastructure, limited educational facilities and widespread socio-economic deprivation despite more than three decades of mining activity. “While local residents bear the severe environmental and social costs associated with large-scale mining, the overwhelming economic benefits are exported abroad,” Ms. Akuffo stated.

The group maintained that Ghana now has the technical expertise and operational capacity to manage the Tarkwa Mine if the government declines Gold Fields’ proposed extension. It pointed to the growing role of Ghanaian mining professionals and indigenous mining contractors, such as Engineers & Planners and Rocksure International, in large-scale mining operations across the country, including at Tarkwa Mine itself. “Major operational activities at Gold Fields’ Tarkwa Mine are currently carried out by Ghanaian mining service providers,” the IEA noted.

The think tank also linked its position to broader Pan-African calls for economic sovereignty championed by leaders such as Kwame Nkrumah, Julius Nyerere and Ahmed Sékou Touré.

However, the Chamber of Mines said discussions surrounding mining lease renewals must be guided by legal certainty, operational efficiency and long-term national development objectives. “As the representative body of the organised mining industry in Ghana, the Chamber believes that discussions on mining leases, investment frameworks and local participation must be guided by the principles of legal certainty, investor confidence, operational efficiency and long-term national development,” it said in a statement.

The Chamber stressed that Ghana’s mining sector has contributed significantly to economic growth, foreign exchange earnings, employment creation, infrastructure development and community investment over the years. It added that such gains had been supported by a stable regulatory framework and partnerships between the State and mining companies operating under Ghanaian law.

On the Tarkwa lease specifically, the Chamber said decisions regarding renewals are governed by the Minerals and Mining Act, contractual obligations and established regulatory processes. “It is therefore important that all stakeholder engagements and public commentary uphold the sanctity of due process and avoid actions that may unintentionally undermine Ghana’s reputation as a competitive and reliable investment destination,” the statement said.

The Chamber further warned that any perception of uncertainty in the administration of mining rights could have broader implications for investor confidence, future capital inflows and employment across the sector. At the same time, it backed increased local participation and value creation in the mining industry, citing ongoing efforts to deepen local content, indigenous contracting opportunities and skills development.

Resource governance expert and co-chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), Dr. Steven Manteaw, has also pushed back against calls for the non-renewal of Gold Fields’ Tarkwa lease, describing the proposals as “misplaced and completely ill-informed.”

Reacting to the debate in a Facebook post, Dr. Manteaw argued that Ghana should instead pursue reforms aimed at deepening local participation in the mining sector without undermining investor confidence.

He outlined what he described as a three-point strategy for placing Ghanaians “in the driver’s seat,” including encouraging mining firms to list on the Ghana Stock Exchange (GSE), converting the country’s 10 percent carried interest in mining ventures into equity participation, and promoting joint ventures between foreign investors and indigenous Ghanaian companies. “Anything other than this approach risks making Ghana an unattractive investment destination and will kill the industry,” he warned.

Drawing parallels with the petroleum sector, Dr. Manteaw cautioned that perceptions of regulatory hostility could have long-term consequences for investment inflows. “The oil sector is today struggling to attract investments because Ghana is seen as a hostile destination. The effect is that our oil sector risks collapse in less than 10 years if the situation remains the same,” he stated. “We must be careful here,” he added.

The disagreement over the future of Tarkwa Mine comes at a time of elevated global gold prices and growing debate across parts of Africa over how resource-rich countries can secure greater value from their extractive industries while preserving investor confidence and long-term competitiveness.

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