Tag: Dr. Ken Ashigbey

  • Investor confidence boosted as gov’t rules out mine nationalisation

    Investor confidence boosted as gov’t rules out mine nationalisation

    By Adnan Adams Mohammed

    The government has forcefully rejected claims of an impending policy shift toward the nationalisation of foreign-owned mining assets, moving swiftly to reassure the investor community that Ghana remains a stable, predictable, and market-driven destination for capital.

    The high-stakes policy clarification comes amid a firestorm of public debate surrounding the upcoming 2027 expiration and renewal of Gold Fields’ flagship Tarkwa mine lease, exposing a deep national divide between calls for localized resource sovereignty and the preservation of foreign direct investment (FDI).

    Speaking at the 19th edition of the West African Mining and Power Expo (WAMPEX) in Accra, the Minister for Lands and Natural Resources, Emmanuel Armah Kofi Buah, declared that broad-scale asset expropriation is not on the cabinet’s agenda.

    “Nationalisation of mines is not government policy,” the Minister stated, clarifying that recent state interventions should not be misconstrued as aggressive resource nationalism. “The government has not adopted a blanket nationalisation policy to take advantage of the sector, but we are actively seeking mutually beneficial partnerships that will leave behind deep technical expertise and genuinely empower Ghanaians in the extractive industry.”

    Stricter Scrutiny, No Automatic Renewals

    Despite the state’s investor-friendly rhetoric, the regulator has made it clear that the era of rubber-stamping multi-decade mining concessions is over. The Minerals Commission has officially ruled out an automatic extension for Gold Fields’ Tarkwa mine a cornerstone asset in the Western Region that produced approximately 427,000 ounces of gold in 2025, valued at over $1 billion.

    The regulatory tension is heightened by the precedent set at Gold Fields’ Damang mine, where the government rejected a lease renewal application, assumed temporary operational control, and subsequently transferred operations to an indigenous Ghanaian firm, Engineers & Planners (E&P), following a competitive tender.

    Chief Executive Officer of the Minerals Commission, Isaac Andrews Tandoh, confirmed that while the state is actively engaged in discussions with Gold Fields, the South African miner will face rigorous new benchmarks before securing a renewal.

    “It won’t be business as usual where we just automatically renew the lease,” Tandoh asserted. “The company must present its exhaustive, long-term development plans to our technical committee, followed by a ministerial-level justification. Mining companies must now show significantly stronger, verifiable commitments to local value creation, structural technology transfer, and sustainable community development.”

    Chamber of Mines Welcomes Assurances

    The government’s explicit rejection of nationalisation has injected a much-needed wave of relief through the formal business community. The Ghana Chamber of Mines warmly welcomed the Minister’s remarks, noting that clarity on the security of tenure is paramount to preventing capital flight.

    Addressing delegates at WAMPEX, the Chief Executive Officer of the Chamber of Mines, Dr. Ken Ashigbey, emphasized that handling mining leases on a transparent, lawful, case-by-case basis is the only way to safeguard Ghana’s international reputation.

    “These assurances reinforce Ghana’s commitment to maintaining a stable, predictable, and investment-friendly environment,” Dr. Ashigbey stated. “Regarding recent discussions of mining leases, the Minister’s clarification helps reinforce investor confidence at a time when policy certainty is critical. The future of mining in West Africa will not be defined solely by extraction, but by who adds value, processes minerals, and builds integrated ecosystems. We must achieve this through collaboration, not disruption.”

    The Backlash: Citizens Feel Shortchanged

    The escalating debate over the Tarkwa lease is fueled by a palpable groundswell of public dissatisfaction. For many mining communities and civil society groups, the visible environmental degradation and local poverty stand in stark contrast to the billions of dollars worth of gold shipped abroad.

    Natural resource governance expert and Co-Chair of the Ghana Extractive Industries Transparency Initiative (GHEITI), Dr. Steve Manteaw, observed that the intense public scrutiny surrounding Gold Fields is a symptom of a much larger socioeconomic grievance.

    “Before the controversy surrounding the renewal of Gold Fields’ Tarkwa mining lease, few mining applications had generated such intense public interest,” Dr. Manteaw said in an interview on Joy News’ PM Express. “There is a widespread, growing perception that resource-rich Ghana is being shortchanged despite decades of mineral extraction. People feel that as resource owners, we are not getting enough, and they want to flip it over to Ghanaians so that greater value is retained in-country.”

    Dr. Manteaw noted that while the current administration’s rhetorical agenda aims to “indigenise the industry and put Ghanaians in the commanding heights of the economy,” the state must tread carefully.

    A Warning Against Sentiment and Populism

    While backing the principle of larger state and indigenous stakes in natural resources, Dr. Manteaw issued a stern warning to policymakers against capitulating to emotional or populist demands that ignore economic realities, backing earlier remarks made by Adnan Adams Mohammed, a veteran journalist and mining Health and Safety Professional.

    “I welcome the call for Ghana to acquire a more substantial stake in our mineral sector, but we need to talk about strategy and not base our actions on pure sentiment,” Manteaw warned. “There is a complex way in which this industry operates. If you don’t get the strategy right, you can put a world-class mine into Ghanaian hands and actually lose out entirely, because local actors may lack the massive capital balance sheets required to sustain production levels.”

    Instead of abrupt ownership seizures, Manteaw proposed structural fiscal reforms, pointing out that Ghana’s historic direct control of mines in the 1970s and 1980s resulted in severe operational inefficiencies and catastrophic financial losses until FDI rescued the sector.

    “What we fundamentally need to fix is the local management and deployment of mineral revenues by district assemblies and central government, which currently favors recurrent expenditure over capital development,” Manteaw argued. He further urged the state to restructure its standard 10% free-carried interest into production-linked equity, ensuring the state receives physical gold rather than waiting years for corporate dividends that may never be declared.

    As the April 2027 expiration date for the Tarkwa concession approaches, the executive branch, parliament, and civil society remain locked in a delicate balancing act: satisfying a domestic population hungry for economic sovereignty without triggering an investor panic that could derail the broader economy.

     

  • Investor exodus and “danger zone” taxes threaten regional mining dominance

    Investor exodus and “danger zone” taxes threaten regional mining dominance

    By Adnan Adams Mohammed

    Ghana’s long-standing reign as Africa’s top gold producer is under severe threat as a “hostile” fiscal regime pushes major investors toward more competitive neighbors.

    In a stark warning, industry leaders suggest that the country has entered a “danger zone” where taxation levels are actively driving capital out of the domestic economy.

    Speaking on Joy News’ PM Express Business Edition, the CEO of the Ghana Chamber of Mines, Ing. Dr. Ken Ashigbey, revealed that Ghana is hitting the upper limits of the International Monetary Fund’s (IMF) recommended fiscal range.

    “The IMF has a model where, in terms of the rent… you are supposed to be doing between 40% and the upper limit at 60%,” Dr. Ashigbey explained. “Currently, what we are doing is that we are hitting that upper limit. If you are an investor and the government is going to take above 60, and you have Ivory Coast and other countries that are going to take less, definitely you are going to find out that some of your investments will move out.”

    The great investor migration

    The warning is not merely theoretical. Dr. Ashigbey cited the high-profile exit of mining giant Endeavour Mining, which has shifted its strategic focus from Ghana to Côte d’Ivoire. He also disclosed that a mining firm recently liquidated a property in South Sudan with the intent of reinvesting in Ghana, only to redirect those funds to Côte d’Ivoire at the eleventh hour.

    “The money moved into Côte d’Ivoire due to the fiscal regime that is not friendly, especially the royalty,” Ashigbey noted. He specifically criticized the recent increase in royalty rates which surged from a flat 5% to a range of 5% to 12% as a primary driver of rising production costs.

    The rise of regional rivals

    While Ghana has historically relied on its stable democracy and the incentives provided under Act 703 to attract investment, neighboring nations are rapidly closing the gap. Côte d’Ivoire, in particular, has laid out an ambitious roadmap to become the continent’s leading producer within the next decade.

    “Their objective is that in the next 10 years they want to be the leading producer of gold in Africa,” Ashigbey warned. “It means they want to take over from us in Ghana… The geology is not restricted to Ghana.”

    Ethics amidst crisis: The Adamus controversy

    The fiscal pressure comes at a time when the industry is also grappling with regulatory and ethical challenges. The Chamber of Mines recently raised concerns about the revocation of the mining lease of Adamus Resources Limited, following allegations of illegal mining breaches and environmental damage.

    The Chamber now supports the government’s decision to establish a committee to review the revocation, following a petition submitted by Adamus Resources Limited on the matter.

    Despite the firm’s pushback, claiming it has been actively fighting illegal mining on its concessions, the Chamber has maintained a firm stance on compliance.

    “The long-term credibility, stability, and competitiveness of Ghana’s mining industry depend on adherence to these standards by all operators,” Dr. Ashigbey stated regarding the controversy. He emphasized that while the Chamber supports “responsible mining,” it remains mindful of the “potential impact of this development on employees and host communities.”

    A call for urgent reform

    As Parliament considers adjustments to various levies, including the Growth and Sustainability Levy, the message from the mining sector is clear: the current path is unsustainable.

    Industry experts are calling for an immediate reconsideration of the royalty regime to prevent further “sovereign risk” perceptions and job losses.

    “What you have done is that you’ve added an additional cost to the production of these mining firms,” Ashigbey concluded. “If we do not look at our fiscal policies urgently, we will find that we have the gold in the ground, but no one to help us bring it out.”

     

     

     

  • Industry warns new ‘Royalty Regime’ could trigger ‘Capital Flight’ and job losses

    Industry warns new ‘Royalty Regime’ could trigger ‘Capital Flight’ and job losses

    By Adnan Adams Mohammed

    The Ghana Chamber of Mines has issued a stark warning to the government, asserting that a proposed overhaul of the mining fiscal regime could dismantle Ghana’s status as a top investment destination.

    The industry body argues that the new “sliding-scale royalty regime” risks branding Ghana as a “fiscal outlier,” potentially driving billions in capital toward more stable neighbors like Côte d’Ivoire and Burkina Faso.

    This pushback follows a major policy announcement by the Acting CEO of the Minerals Commission, Isaac Tandoh, who revealed plans to scrap long-term stability agreements and significantly hike royalties. The reforms aim to ensure the state captures a fairer share of the recent “gold super-cycle,” with spot gold prices trading near record highs of US$5,100 per ounce.

    The “Fiscal Outlier” threat

    The crux of the tension lies in the proposed jump in royalty rates. Currently, mining firms pay a flat 5% royalty. Under the new sliding-scale framework, this could soar to between 9% and 12% (and potentially as high as 17% when combined with other levies) depending on global gold prices.

    “International benchmarking indicates that Ghana already occupies a high-tax position,” the Chamber stated in a position paper released last week. When the new royalties are added to the 35% corporate income tax and the State’s 10% free-carried interest, the cumulative burden becomes unsustainable for many operations.

    Modeling the damage: Jobs and revenue

    The Chamber’s investment modeling suggests that the policy could have a “non-linear” and devastating impact on the economy:

    ● Job Losses: An estimated 1,344 jobs are at risk, with 88% of those coming from local host communities.

    ● Stalled Projects: Major operations, such as AngloGold Ashanti’s Obuasi Mine, could see an 8% decline in Net Present Value (NPV), potentially pushing projects below the “hurdle rate” required for reinvestment.

    ● Supply Chain Contraction: Local procurement, a lifeline for many Ghanaian businesses, could contract by over US$1.7 billion over time.

    “The question is whether the government wants revenue on a sustainable basis or just in the next few years before investments move elsewhere,” warned Dr. Ken Ashigbey, CEO of the Chamber of Mines.

    A “double-edged knife”

    While the government argues that these reforms are necessary to “indigenize” value and correct past “abuses” of stability agreements, industry experts call it a gamble. By scrapping the clauses that shield investors from sudden policy shifts, Ghana may increase its “sovereign risk perception” at a time when competition for mining capital is global.

    The Minerals Commission maintains that the reforms are about balance. “We had to do something to bridge this gap,” said Isaac Tandoh, noting that some companies have historically used revenues from Ghana to acquire assets elsewhere while refusing basic local obligations.

    As the draft bill prepares to head to Parliament by March, the mining industry is calling for a “sweet spot” a regime that allows the state to benefit from high prices without choking the very companies providing the revenue.