Audio By Carbonatix
The Chief Executive of the Ghana Chamber of Mines, Engineer Kenneth Ashigbey, has said Ghana should expand local participation in the mining sector, but cautioned against abrupt policy shifts that could undermine investor confidence and legal stability.
Speaking in an interview on JoyNews' Newsfile on Saturday, May 16, he said he does not disagree with calls by the Institute of Economic Affairs (IEA) for Ghana to take greater control of the “commanding heights” of its mining industry.
However, he stressed that policy implementation must be guided by data, history, and legal predictability.
"I don't disagree that Ghana should be able to take over a larger chunk of the issues of mining. My only challenge with that, and which I have invited the IEA for us to all sit together and discuss, is that if you look at the paper that the IEA presented, this is the Institute of Economic Affairs. There was no data, you know, in all of that conversation. There was no, you know, they didn't look at our history, where we have come from," he pointed out.
According to him, the sector has moved from being largely foreign-controlled in the past to a system where Ghanaians now play significant roles across operations, contracting, and management.
He noted that Ghanaian participation has increased not only at operational levels but also in contracting and service provision, with local firms now expanding beyond Ghana into other African jurisdictions.
“You have Ghanaians going out into other jurisdictions and running projects outside,” he said.
However, he stressed that mining remains a highly capital-intensive industry, making full local ownership or rapid takeover unrealistic without significant foreign capital and partnerships.
He cited major mining developments, such as the Ahafo mine operated by Newmont Corporation, which he said required investments running into billions of dollars—capital levels that local financial institutions alone cannot currently provide.
“How many of our banks in Ghana could even raise that kind of capital?” he asked.
Engineer Ashibey warned that while Ghana can strengthen local ownership and participation, it must be done through gradual evolution, not policy disruption.
He also cautioned against proposals to aggressively take over mining leases, noting that Ghana’s legal framework, including the Minerals and Mining Act (Act 703), provides clear provisions on lease renewals and investor rights.
He stressed that investor confidence depends heavily on legal stability, predictability of regulations, and security of tenure, warning that sudden policy reversals could discourage investment. “You cannot change the rules midway and expect investors to remain confident,” he said.
While supporting increased Ghanaian participation in the sector, he called for collaboration between policymakers, industry stakeholders, and think tanks to ensure reforms are grounded in data and long-term economic strategy.
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