The Institute of Economic Affairs (IEA) has criticised the sale of Newmont\u2019s Akyem Gold Mine Project in Ghana to China\u2019s Zijin Mining Group for $1.0 billion, calling the deal \u2018flawed\u2019 and \u2018detrimental\u2019 to Ghana\u2019s interests.<\/p>\n The Institute believes that Ghana needs a new approach to its mineral contracts, stating that national ownership is needed to create jobs, wealth, and technical capacity for Ghanaians.<\/p>\n \u201cThe IEA notes that the project lease was signed between the Ghana Government and Newmont on January 19, 2010, and has an expiry period of 15 years, valid until January 19, 2025. According to the terms, the lease is transferable within the duration period, subject to mutual agreement between the Government and Newmont.<\/p>\n \u201cThe lease is also subject to extension after its expiry date by mutual agreement. The lease has not yet expired, and therefore, any decision by Newmont to sell the mine must be on a transfer basis and must be for the unexpired term only and subject to Government agreement,\u201d the IEA claimed in a statement sighted by GhanaWeb Business.<\/p>\n The IEA also pointed out that Newmont must return the mine to the government at the end of the lease.<\/p>\n \u201cAt the end of the expiry period, Newmont is obliged to hand over the mine back to the Government, the rightful owner of the gold under the assigned land. Any company that wants to operate the mine after the expiry date of the lease must sign a new agreement with the Government,\u201d it added.<\/p>\n The IEA also noted that no agreement has been reached for the transfer of the mine to Zijin for the unexpired term of the lease, nor has there been an extension of the lease agreed upon by the government.<\/p>\n The institute further revealed that some Ghanaian companies made respective bids for the mine but were outbid by Zijin.<\/p>\n This decision, it said, contradicts the President\u2019s earlier statement in his State of the Nation Address, where he emphasised prioritizing Ghanaian investors for such acquisitions.<\/p>\n The IEA therefore questioned why the President\u2019s stance has changed, favoring a foreign company over local investors.<\/p>\n The institute further noted that even Canada, where Zijin is seeking to invest, has limited Zijin\u2019s stake in its critical minerals sector for national security reasons.<\/p>\n The IEA stressed that Ghana\u2019s natural resources are crucial for the country\u2019s development and poverty eradication.<\/p>\n \u201cThe usual excuse given by Ghanaian officials that the country lacks the requisite capital and expertise locally for exploiting its natural resources and, therefore, has to depend on foreign investors and compensate them accordingly is no longer tenable. Other countries with similar conditions as Ghana\u2019s have been able to negotiate much better terms for the exploitation of their natural resources,\u201d it alluded.<\/p>\n The IEA proposed two recommendations to improve the governance of Ghana\u2019s natural resources and reduce corruption.<\/p>\n First, amend Article 257(6) of the Constitution, which vests natural resources in the President, to prevent unilateral decisions.<\/p>\n Second, introduce a provision in the Constitution or the Minerals and Mining Act, 2006 (Act 703), to prohibit the government from signing high-value contracts six months before the end of their term, preventing last-minute deals for personal gain.<\/p>\n See the IEA full statement below:<\/b><\/p>\n![\"The](\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/847\/84704252.295.jpg\" "\\"The")
The Institute of Economic Affairs (IEA)<\/span><\/span><\/p>\n<\/div>\n