The Institute of Economic Affairs is calling on Parliament not to ratify the sale of Newmont’s Akyem Gold Mine to China’s Zijin Mining Group in its current form.
The IEA has questioned the planned sale of Newmont’s Akyem Gold Mine to China’s Zijin Mining Group for $1 billion. According to the think-tank, the sale undermines Ghana’s economic interests and violates key terms of the mine’s lease agreement, set to expire in January 2025.
The IEA argued that the original lease agreement requires government approval for any transfer of ownership, and there is no record of such approval.
It says if any such sale should happen at all, Ghanaian investors should be prioritized over foreigners in line with President Akufo-Addo’s previous statements on keeping mineral wealth in local hands.
The Director of Research at the IEA, Dr John Kwakye in an interview on Hot Edition on 3FM, wants the sale blocked while urging Parliament to reject the deal outrightly.
He says the institute will be writing to Parliament to that effect.
“The IEA is seriously concerned about the impending sale of the Akyem Gold Mine by Newmont to the Chinese company. It is a potential violation of the lease agreement. We have obtained a copy of the lease agreement signed between the government of Ghana and Newmont in 2015, which is set to expire in January 2025.
The terms of the lease allow Newmont to either transfer ownership with the government’s approval or request an extension of the lease. As far as we know, none of these processes have taken place. However, we hear that Newmont is now selling the mine to a Chinese company, which we believe is a breach of the agreement.” He said.
The IEA further proposed amendments to the Constitution and Minerals and Mining Act to enhance the governance of the country’s natural resources and reduce corruption.
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