Tarkwa Gold Mine: Why Kofi Bentil Wants Mahama to Cancel Goldfields’ Mining Lease

Prominent Ghanaian lawyer and public policy analyst Kofi Bentil has cautioned President John Dramani Mahama against renewing what he considers an unfavourable mining arrangement involving Gold Fields Ghana Limited, citing the circumstances under which the company acquired mining rights over the Tarkwa Gold Mine nearly three decades ago.

Bentil has alleged that Gold Fields secured the mining lease for a consideration of just US$30,000 during the administration of former President Jerry John Rawlings, despite the substantial value of the gold deposits involved.

He estimates that the company has generated approximately US$30 billion from its mining operations over the period, raising concerns about whether Ghana negotiated an agreement that adequately protected its economic interests.

His comments come amid growing demands from chiefs and queen mothers of the Wassa Fiase and Apinto Traditional Areas in the Western Region for the government to reject any renewal of Gold Fields’ mining leases, which are due to expire in April 2027.

The traditional authorities want the government to assume control of the Tarkwa Gold Mine and subsequently consider transferring its operations to a qualified indigenous Ghanaian mining company.

They argue that decades of gold extraction have not translated into sufficient economic and infrastructural development for communities hosting the mining operations.

In a Facebook post, Bentil, who is associated with the public policy think tank IMANI Ghana, shared what he described as a copy of the original mining lease agreement between the Government of Ghana and Gold Fields.

He drew attention to Clause 20 of the document, which deals with the company’s financial obligations, and questioned the consideration allegedly paid for the mining rights.

Bentil described the reported US$30,000 payment as disproportionately low compared with the value of the mineral resources and the revenue subsequently generated from the mine.

He further estimated that the amount was equivalent to an average of US$1,000 annually over a 30-year period.

However, his US$30 billion estimate was not accompanied by a breakdown establishing whether it represented cumulative revenue, profit or another financial measure.

The reported consideration fee also needs to be distinguished from other financial obligations associated with the mining agreement, including royalties, corporate taxes, capital investments and other statutory payments to the state.

Beyond the alleged payment, Bentil questioned the decision to transfer the mining operation to a foreign investor when significant infrastructure had reportedly already been established using public resources.

He argued that the Tarkwa mine was already an operational state-owned gold mining facility before the private-sector arrangement was introduced in 1997, meaning the incoming company did not have to develop the entire operation from scratch.

According to him, the circumstances surrounding the original agreement should serve as a warning against entering into similar arrangements when dealing with Ghana’s valuable mineral resources.

Bentil has therefore urged the Mahama administration to reject a renewal of the existing mining lease, arguing that the approaching expiry provides an opportunity to reconsider the ownership and management structure of the mine.

His position has added momentum to demands for greater Ghanaian participation and control in the country’s mining industry.

The concerns are also being echoed by traditional authorities in the Wassa Fiase and Apinto Traditional Areas, who believe the expiry of the mining leases in April 2027 presents an opportunity to address longstanding grievances over the distribution of mining benefits.

At a general meeting of the Wassa Fiase Traditional Council on Wednesday, November 4, 2026, divisional chiefs and queen mothers expressed dissatisfaction with the development outcomes in their communities despite the substantial gold resources extracted from the area.

They raised concerns about deteriorating roads, inadequate social infrastructure, limited corporate social responsibility projects and delays in the payment of royalties owed to traditional authorities.

The chiefs maintained that communities hosting the mining operations continue to experience the environmental and social consequences of large-scale mining without receiving benefits commensurate with the resources extracted from their lands.

They have consequently appealed to President Mahama to reject any application by Gold Fields to extend its mining rights and consider an alternative arrangement that would give Ghana greater control over the operation.

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

The council is advocating for the transfer of the concession to a financially capable and technically competent Ghanaian investor that can sustain the mining operations while ensuring that the country and host communities receive greater economic benefits.

Under the current ownership arrangement, the government holds a 10 per cent interest in the Tarkwa operation, while Gold Fields owns the remaining 90 per cent.

The impending expiry of the leases has therefore intensified discussions about whether the existing arrangement should be maintained, renegotiated or replaced with a structure that gives indigenous Ghanaian investors a more significant ownership stake.

The mining agreement shared by Bentil has also drawn attention to provisions governing the relationship between the government and the company.

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

The provision generally restricts the disclosure of certain company 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 relevant information when preparing general reports on Ghana’s mineral resources and addressing disputes between the parties.

Clause 20, which is titled Financial Obligations, contains provisions relating to the consideration payable for the grant of the mining lease.

However, the complete wording of the relevant subsection and the alleged US$30,000 figure are not visible in the portion of the agreement reproduced in Bentil’s post.

Consequently, the full contractual terms and other financial obligations must be examined before drawing conclusions about the overall value Ghana received from the arrangement.

The controversy has also renewed discussions about the ability of indigenous Ghanaian companies to manage large-scale mining operations.

One company frequently cited in the debate is Engineers and Planners (E&P), owned by businessman Ibrahim Mahama.

Supporters of increased local ownership have pointed to the company’s takeover of operations at the Damang Gold Mine, previously operated by Gold Fields, as an indication that Ghanaian firms can develop the technical and managerial capacity required to operate major mining concessions.

Since assuming operations at Damang in April 2026, E&P has reportedly implemented measures to expand its workforce, improve production capacity and increase employment opportunities for residents of surrounding communities.

Figures provided on the company’s operations indicate that its workforce grew from 207 employees at the time of the handover to 426 by September 2026.

The increase 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 communities surrounding the mine, highlighting the company’s efforts to increase local participation.

Monthly mining volumes also increased from 1.4 million tonnes in May to approximately three million tonnes in September 2026.

The company further projected that its workforce would exceed 500 employees before the end of the year.

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

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