The Institute of Economic Affairs (IEA) has urged the government to reject decisively the extension of the current mining lease at the Tarkwa Mine, which expires in April 2027, by 20 years.

According to the institute, it considers the requested lease renewal by the South African firm deeply inimical to Ghana’s long-term economic and strategic interests.

In a statement, it advised the government to prioritise a framework that secures meaningful Ghanaian ownership and control of the Tarkwa Mine.

“We are equally aware of attempts by Gold Fields to court the support of traditional authorities in Tarkwa for this proposed extension. 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, while prioritising a framework that secures meaningful Ghanaian ownership and control of the Tarkwa Mine”. 

It pointed out that Ghana has little transformative development to show for its immense mineral wealth after more than a century of permitting foreign entities such as Gold Fields to exploit Ghana’s mineral resources under concessionary frameworks 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 it added. 

The IEA continued that 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.

“After more than three decades of mining activity in Tarkwa, many communities within the enclave continue to grapple with deteriorating roads, inadequate healthcare infrastructure, limited educational facilities, and widespread socio-economic deprivation”, it said.

“While local residents bear the severe environmental and social costs associated with large-scale mining”, it said “the overwhelming economic benefits are exported abroad, enriching foreign economies while leaving the host communities marginalised and environmentally burdened”.

As Gold Fields’ current mining lease approaches expiration in April 2027, the IEA said Ghana is presented with a rare and historic opportunity to reclaim ownership and strategic control of the Tarkwa Mine at a time when global gold prices remain exceptionally high. “Such an opportunity offers the country the potential to channel mining revenues directly into national development and the transformation of mining communities”.

It added that its position that Ghana must ultimately own and control its natural resources is firmly grounded in the Pan-African vision espoused by leaders such as Kwame Nkrumah, Julius Nyerere, and Ahmed Sékou Touré. “Indeed, Ghana’s current President, John Mahama, has on numerous occasions advocated greater sovereignty over Ghana’s natural resources as an essential pathway toward improving the welfare of the Ghanaian people”.