In late 2023, Newmont disclosed plans to divest certain mining assets, focusing on “Tier 1” assets that have the potential to produce at least 500,000 ounces of gold equivalent over a minimum ten-year span. Among the projects earmarked for sale is the Newmont Akyem mine in Abirem, which has already produced about 420,000 ounces of gold. The sale process for this mine is reportedly nearing completion, with indications pointing toward a Chinese entity emerging as the prospective buyer. Newmont maintains its right to sell to the highest bidder, which raises questions about Ghana’s opportunities for local involvement in mining ownership at a significant scale.
President Akufo-Addo previously stated in his address that the government would prioritize Ghanaian investors in the acquisition of mining resources, reflecting a commitment to ensuring that the country’s natural wealth benefits its citizens. However, critics argue that the government seems to be disregarding this promise, as there are Ghanaian bidders who are fully capable of taking over the Akyem mine. The Ghanaian government, along with support from entities like the Minerals Infrastructure and Investment Fund (MIIF), could consolidate investments in order to secure a majority stake in the mine. This situation is particularly concerning given the growing awareness among countries about the importance of retaining control over their natural resources.
The decision to potentially sell a top-tier mine to a foreign entity raises alarms amidst ongoing challenges in managing illegal small-scale mining and its associated environmental impacts. This juxtaposition is perplexing, especially when local investment vehicles could be employed to strengthen Ghana’s position in the mining sector. Critics of the government’s approach highlight the lost opportunity to establish local ownership, which could enhance the country’s gold reserves and stimulate related economic benefits through gold-backed currency initiatives and local refining capabilities.
The apparent reversal from the government’s earlier commitment to facilitate local ownership of mining assets has caught observers off guard. Newmont continues to operate its Ahafo mine, which is classified as a Tier 1 asset and demonstrates the company’s long-term intentions in Ghana, including a notable investment of $1.4 billion into the Ahafo North mine. Given Newmont’s favorable tax situation in Ghana, saving upwards of $2 billion, the government is in a strong position to negotiate favorable terms that could ensure local stakeholder participation in the Akyem mine’s future.
There is an urgent need for Ghanaians to more fully benefit from the country’s mineral resources, and local investors should have the opportunity to consolidate their capital and expertise to take over assets operated to high standards, like those of Newmont. By leveraging local capabilities, the country could foster a more circular local economy around its gold industry that benefits Ghanaian citizens rather than allowing profits to flow out of the country, a trend seen since the advent of large-scale mining over a century ago.
In tandem with these considerations, there are pressing calls for parliamentary investigations into the mine’s impending sale to a foreign entity. Questions arise regarding why local bidders may have been overlooked, the role of the Minister of Mines and Natural Resources in the advisory process, and why the government did not better position reputable Ghanaian agencies to capitalize on this opportunity. President Akufo-Addo’s legacy could be significantly affected by how this situation unfolds, especially given Ghana’s historical association with gold. It is essential that the government acts decisively to ensure that the country’s long-term interests in gold production are upheld, avoiding any potential missteps that might tarnish the President’s legacy in the eyes of history.
