Finance Minister Dr. Ato Forson has raised concerns about mining firms putting pressure on the government to review mining lease and then quickly turn around to sell it to another investor.

According to the finance minister, such practices should not be encouraged if these mining firms want to establish mutual trust with the government on these developments.

The finance minister disclosed this in an interview with the Bloomberg News in London.

Dr. Ato Forson noted that the government is not trying to direct these mining firms on what to do with the mining concessions, but it is something that should not be encouraged, especially in these times.

The Minister for instance cited Newmont’s decision last year to sell its Akyem Gold Mine Project to the Zijin Mining Group for US$ 1 billion, a month after it secured an extension of that mining lease.

“That was a mine that the lease had expired after 25 years, it expired and we went ahead to renew it for them and they sold it a month after,” the finance minister stated.

Dr. Forson noted that the intention was to lease it for them to aid the extension of their business.

The finance minister was responding to a question about the government relationship with these mining firms owed by foreign firms in the country, especially in these times.

The finance minister noted the government has a very good relationship with all the firms, but want to ensure that the right thing is done.

Gold Fields Lease

On the Goldfields Tarkwa Mine issue, the finance minister noted that the government is looking into the firm's request and will take a decision on it when the lease expires in 2027.

“We have not come to an agreement with anyone, because the lease is still active as we speak “the finance minister added.

The minister also rejected reports that negotiations with these mining firms and other investors in that sector has been tensed and the Government of Ghana is trying to nationalized some of the country’s mineral wealth.  

Reviewing Mining Sector Fiscal Regime 

Speaking in the interview with theBloomberg, the finance minister also justified the government’s decision to review the tax regime of the mining firms, especially royalties.

The finance minister noted that if gold prices are rising on the international market, it is fair that these taxes are reviewed going forward

He also justified the government’s decision to introduced what they describe as the windfall tax.

“We did push the sliding scale policy to ensure that when gold prices go up, the country benefits” the Minister added

He noted that “when the price goes up we all benefit, when it goes down, we look at the associated cost as well”.

BoG’s Gold Purchase Programme

Dr. Ato Forson also justified the government’s buy back policy, arguing that it is part of plans to improved the countries reserves.

He revealed that the plan going forward is to hold 20%of Ghana’s reserves in gold and the remaining to dollars.

Asked whether he sees that changing, the minister noted that is part of the plan for now. “We believe that this approach will help put the Bank of Ghana in a strong position to support the currency”, he added