Goldfields Controversy: Kofi Bentil Warns Mahama Against Repeating Rawlings’ Mining Deal

Prominent Ghanaian lawyer and public policy analyst Kofi Bentil has urged President John Dramani Mahama not to renew Gold Fields Ghana Limited’s mining leases for the Tarkwa Gold Mine, warning against what he considers a costly mistake made during the administration of former President Jerry John Rawlings.

Bentil has questioned the circumstances under which the mining rights were granted to the South African mining company, alleging that Gold Fields paid only US$30,000 as consideration for a lease covering one of Ghana’s most valuable gold deposits.

He estimated that the company had generated approximately US$30 billion from its operations over the nearly three decades, arguing that the alleged initial payment was insignificant compared with the value of the mineral resources extracted.

His comments have reignited debate over Ghana’s mining agreements, particularly the financial terms negotiated with foreign investors and the extent to which the country has benefited from the exploitation of its natural resources.

Bentil’s intervention comes amid growing calls by chiefs and queen mothers of the Wassa Fiase and Apinto Traditional Areas in the Western Region for the Mahama administration to reject any application by Gold Fields to renew its mining leases when they expire in April 2027.

The traditional authorities want the government to take control of the Tarkwa Gold Mine and subsequently consider transferring its operations to a financially capable and technically competent Ghanaian company.

They argue that decades of large-scale mining have not translated into sufficient economic and social development for communities affected by the operations.

In a Facebook post, Bentil shared what he described as a copy of the original mining lease agreement between the Government of Ghana and Gold Fields, drawing attention to provisions concerning the company’s financial obligations.

He alleged that the mining rights were granted for US$30,000, describing the amount as inadequate given the value of the gold deposits and the wealth subsequently generated from the concession.

Bentil further estimated that Gold Fields had generated about US$30 billion from the operations, although he did not clarify whether the figure represented total revenue, profit or another financial measure.

The alleged US$30,000 consideration fee also needs to be distinguished from the company’s other financial obligations, including royalties, corporate taxes, capital investments and statutory payments to the government.

Nevertheless, the lawyer’s claims have raised broader questions about how Ghana values its mineral resources and whether the country secures sufficient returns from agreements involving major mining concessions.

Beyond the alleged consideration fee, Bentil questioned the decision to transfer control of an established mining operation to a foreign investor, particularly because significant infrastructure had reportedly been developed before the arrangement.

He maintained that the Tarkwa mine was already operating as a state-owned facility before the mining rights were granted to Gold Fields, meaning the company did not have to establish the entire operation from scratch.

His position is that Ghana must avoid entering into similar arrangements and use the approaching expiration of the existing leases to reconsider the ownership structure of the mine.

Bentil has consequently called on the Mahama administration not to renew the company’s mining rights, advocating greater Ghanaian participation and control over the country’s mineral resources.

His position aligns with demands from traditional authorities in the Wassa Fiase and Apinto areas, who believe the April 2027 lease expiration presents an opportunity to address longstanding concerns about the distribution of mining benefits.

At a general meeting of the Wassa Fiase Traditional Council on Wednesday, November 4, 2026, chiefs and queen mothers expressed dissatisfaction with what they considered inadequate development in communities hosting the mining operations.

They raised concerns about poor road networks, inadequate social infrastructure, limited corporate social responsibility initiatives and delays in the payment of royalties owed to traditional authorities.

The traditional leaders argued that residents continued to experience the environmental and social effects of mining activities without receiving benefits proportionate to the wealth extracted from their lands.

They therefore appealed to President Mahama to reject any request by Gold Fields to extend its mining leases and consider alternative arrangements that would give Ghanaian interests greater control over the concession.

The Apinto Divisional Council, within whose traditional jurisdiction the Tarkwa mine is located, has also petitioned the government against renewing the company’s mining rights.

The council is advocating for the concession to be transferred to a capable indigenous mining company with the financial strength, technical expertise and management experience required to operate the facility successfully.

Under the existing ownership arrangement, the Government of Ghana holds a 10 per cent interest in the Tarkwa operation, while Gold Fields controls the remaining 90 per cent.

The impending expiration of the leases has therefore intensified discussions about whether the current ownership structure should be maintained, renegotiated or replaced with an arrangement that gives Ghanaian investors a controlling interest.

The lease agreement shared by Bentil has also attracted attention because of its provisions governing the relationship between the government and the mining company.

One of the sections reproduced in his post is Clause 19, which deals with the confidential treatment of information provided by the company to the government.

The provision generally restricts the disclosure of certain information for five years after submission or until the agreement is terminated, whichever occurs earlier, subject to specified exceptions.

It also allows the government to use such information when preparing general reports on Ghana’s mineral resources and in connection with disputes involving the parties.

Clause 20, which addresses financial obligations, contains provisions relating to the consideration payable for the grant of the mining lease. However, the complete wording of the clause, including the specific amount, was not visible in the portion of the agreement reproduced in Bentil’s post.

Consequently, a comprehensive assessment of the financial terms would require examination of the complete agreement and other relevant records detailing the company’s obligations to the state.

Such an assessment would also need to account for royalties, taxes, investment commitments and other payments made throughout the period of operation.

Meanwhile, the growing campaign for greater indigenous participation in Ghana’s mining industry has brought renewed attention to Engineers and Planners (E&P), the locally owned mining company belonging to businessman Ibrahim Mahama.

Supporters of increased Ghanaian ownership have cited E&P’s operations at the Damang Gold Mine, previously operated by Gold Fields, as an indication that indigenous companies can develop the capacity to manage major mining concessions.

Since taking over operations at Damang in April 2026, E&P has reportedly expanded its workforce, increased mining volumes and introduced measures aimed at strengthening local participation.

Available operational figures indicate that the company’s workforce grew from 207 employees at the time of the handover to 426 by September 2026.

This included 120 workers whose employment arrangements were regularised after previously working under labour-hire contracts.

Approximately 62 per cent of the workforce reportedly comes from 10 surrounding communities, highlighting the company’s efforts to increase employment opportunities for residents in the mining area.

Mining volumes also reportedly increased from 1.4 million tonnes in May to approximately three million tonnes in September 2026, while the company projected that its workforce would exceed 500 before the end of the year.

Advocates of indigenous ownership believe these developments demonstrate the potential of Ghanaian companies to manage large-scale mining operations while retaining a greater share of the economic benefits within the country.

They also point to the availability of experienced mining engineers, geologists, financial professionals and other technical experts trained in Ghana, particularly graduates of the University of Mines and Technology in Tarkwa, as evidence of the country’s growing capacity to manage major mining projects.

However, transferring the Tarkwa concession to a local operator would require careful consideration of several factors, including access to financing, technical expertise, existing infrastructure, production targets, employment arrangements and the contractual rights of all parties involved.

With the mining leases expected to expire in April 2027, the Mahama administration faces an important decision concerning the future of one of Ghana’s significant gold-producing assets.

Source: https://mobile.ghanaweb.com/GhanaHomePage/NewsArchive/Mahama-cautioned-against-repeating-Rawlings-era-mistake-with-Tarkwa-Mine-2060417

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