News Guide Africa

Tag: Minerals Commission

  • ‘Contract Mining’ costs Ghana taxes and workers’ rights – study reveals

    ‘Contract Mining’ costs Ghana taxes and workers’ rights – study reveals

    By News Desk

    Ghana’s aggressive push toward resource nationalism is facing a severe reality check. What was designed to be a landmark economic triumph, forcing global mining titans to transfer open-pit and underground operations to indigenous firms, is rapidly devolving into an industrial crisis.

    While the state celebrates the birth of a new class of politically connected “local mining champions,” a darker narrative is unfolding in the goldfields of Tarkwa, Obuasi, and Ahafo.

    Under the guise of Legislative Instrument (L.I.) 2431, international operators are being forced to hand over core operations to Ghanaian contractors. However, a study conducted by Ghana Mineworkers Union and Adnan Adams Mohammed (a veteran Finance and Economic Journalist) suggests that this transition is aggressively eroding labor safety standards, aggressively depressing Pay-As-You-Earn (PAYE) tax revenues, and systematically impoverishing the local workforce.

    The economics of a race to the bottom

    The transition from owner-led mining to contract mining has triggered intense cost competition among local contractors eager to win lucrative concessions. To secure contracts with multinationals like Newmont, AngloGold Ashanti, and Zijin Mining, local entities are aggressively underbidding one another.

    Data compiled by the Minerals Commission indicates that operational contract rates have plummeted by over 17%.

    Infographic: The Price of Underbidding

    Metric Owner Mining Model Contract Mining Model Percentage Change

    Average Mining Production Cost (per Ton) $3.00 < $2.50 -16.7%

    Average Worker Basic Compensation 100% (Baseline) ~50% of Baseline -50.0%

    PAYE Tax Contribution per Capita High Critically Low Highly Suppressed

    Statutory Compliance (Pensions/SSNIT) Guarded / Publicly Audited Highly Inconsistent High Default Risk

    This margin compression does not come out of the pockets of the business executives; it is directly extracted from the livelihoods of ordinary Ghanaian miners.

    Enriched elites vs. impoverished labour

    The structural shift is widening a massive wealth gap between a small group of politically exposed businessmen and the thousands of labourers working the pits. Local contractors routinely bypass or completely ignore transitional labour agreements designed to protect workers during the hand-off from multinational parent companies.

    When operations shift from an owner-operator model to a contractor model, workers are frequently forced into new contracts featuring slashed salaries, zero job security, and severely degraded safety protocols.

    “The growing reliance on contract mining is reversing hard-won labour protections. Local contractors typically pay wages roughly 50% lower than international operators for the exact same roles, offer vastly inferior job security, and show glaring gaps in social security contributions” Abdul Moomin Gbana, General Secretary of the Ghana Mineworkers’ Union has said.

    While multinational firms are bound by international labor frameworks and strict stock exchange listings, local private entities operate with far less public oversight. The results are devastating for local families.

    Shortchanging the national tax purse

    The state’s financial losses extend far beyond broken promises of value retention. The shift from high-earning, formalized direct employment to low-wage contract labor has crippled the Ghana Revenue Authority’s (GRA) collection of Pay-As-You-Earn (PAYE) taxes.

    Because basic wages are slashed by up to half under local contractor structures, individual income tax contributions have dropped correspondingly. This creates an ironic economic failure: the government’s local content policy is systematically draining the national treasury to line the pockets of a select few private business owners.

    Furthermore, several local contractors are reportedly defaulting on statutory remittances, including Tier-1 SSNIT pensions and provident funds. This effectively leaves the long-term financial security of Ghanaian workers entirely unprotected.

    The Minerals Commission has publicly acknowledged these systemic failures.

    “We have observed instances where mining service rates have fallen significantly, placing severe pressure on contractors and, by extension, their workers. The Commission is moving to tighten oversight of contractors to prevent the underpricing practices that drive down wages and operational safety standards” Isaac Tandoh, Chief Executive of the Minerals Commission said at the 2nd Africa Mining Health and Safety Series last month in Takoradi.

    The legal and safety blind spot

    The rush to hit the state’s strict compliance deadlines has forced many operators to overlook safety and operational frameworks. Industry executives privately warn that forcing capital-intensive, high-risk operations like blasting and heavy haulage onto local firms without a gradual, market-driven transition poses severe operational and physical dangers.

    The Ghana Chamber of Mines has urged the government to slow down and rethink its rigid enforcement timeline to preserve industry stability.

    “While the policy direction is understood, its implementation must be gradual to avoid disruptions in production and investment confidence. We must ensure a balanced, win-win outcome that preserves operational efficiency while advancing national policy objectives” Ken Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines shared his worry.

    A call for regulatory realignment

    If “Local Content” is to mean genuine economic empowerment rather than the exploitation of citizens by domestic elites, a major policy realignment is urgently needed.

    Ghana’s regulatory bodies cannot afford to monitor ownership percentages while completely ignoring labor exploitation and tax evasion. The Minerals Commission must immediately establish strict pricing benchmarks that prevent underbidding, mandate full transparency for transitional labor agreements, and black-list contractors who default on worker pensions and state taxes.

    Until these safeguards are legally enforced, the gold fields of Ghana will continue to enrich a well-connected few, while leaving the state treasury empty and the indigenous workforce broken, argues the Ghana Mineworkers Union.

     

     

     

     

     

     

     

     

     

     

  • Reject Foreign Labels: Africa Must Define Own ‘Critical Minerals’ – Minerals Commission CEO

    Reject Foreign Labels: Africa Must Define Own ‘Critical Minerals’ – Minerals Commission CEO

    In a move to reclaim the continent’s economic narrative, the CEO of the Minerals Commission, Mr. Isaac Tandoh, is calling for a radical shift in how Africa classifies and manages its vast natural wealth.

    Speaking on February 10, 2026, at the African Mining Indaba, Mr. Tandoh warned that adhering to mineral definitions imposed by the “Global North” risks reducing the continent to a mere “warehouse” for foreign energy transitions.

    A New Framework for Sovereignty

    During a roundtable discussion titled “Is the Term ‘Critical Minerals’ Right for Africa?” at the Ngorongoro Crater Stage, Tandoh argued that current global definitions prioritize foreign needs over African development.

    “Africa should define critical minerals in Africa’s own terms, anchored in our development objectives, our people’s needs, and our continent’s sustainable future,” he stressed.

    To bridge the gap between extraction and industrialization, the CEO proposed a specialized three-tier framework:

    Core Development Minerals: Resources essential for powering Africa’s own industrialization and electrification. These, he insisted, must be processed locally to create domestic jobs.

    Global Energy Transition Minerals: Resources in high demand globally. While these should be supplied responsibly, they must be leveraged to build regional processing capacity.

    Guardrail Minerals: Resources that carry high environmental or social risks, necessitating strict governance and total transparency.

    Moving Beyond the “Export Only” Model

    The CEO highlighted that as Africa urbanizes and pursues inclusive growth, its minerals should be viewed as the “bricks and mortar” of local factories and digital economies, rather than just raw inputs for foreign clean-energy tech.

    “If we simply adopt foreign definitions, we risk exporting raw ore while importing finished goods,” Tandoh warned.

    He further outlined three non-negotiable principles for the continent’s extractive sector:

    Governance: Transparent licensing and strict oversight.

    Value Addition: Moving from extraction to “beneficiation” (local refining and manufacturing).

    Adaptability: Building regional ecosystems for steel, batteries, and electronics.

    Call for a Pan-African Charter

    To formalize this shift, Mr. Tandoh called for the establishment of a Critical Minerals Charter. This charter would set continent-wide governance standards, beneficiation targets, and milestones for skills development. He urged that this be a collaborative effort involving governments, industry, and civil society.

    “Africa’s minerals are critical, but not because the world says so,” Tandoh concluded. “They are critical because they hold the key to our sovereignty, resilience, and prosperity.”

     

     

  • 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.

     

     

  • Damang Mines’ takeover: investors rushes to catch eye of government for management contract

    Damang Mines’ takeover: investors rushes to catch eye of government for management contract

    Acting Chief Executive of the Minerals Commission, Isaac Andrews Tandoh, has revealed that several investors have submitted proposals for the possible takeover of the Goldfields Damang Mines.

    He, however, maintained that the government is currently going through this proposal and a decision would be taken soon by the sector minister on the way forward.

    The Acting Chief Executive of the Minerals Commission disclosed this on PM Express Business Edition on September 4, 2025, with host George Wiafe.

    Mr Tandoh assured that the government will take steps to ensure that it settles on the best proposal that will help turn the mine around and serve the interests of the mining community.

    “Government has not got any preference, but we are looking for the best for Ghanaians and the indigenes of these mining communities,” Mr Tandoh said.

    He also revealed that the government has put together a committee to oversee the transition once the one-year extension is over by Goldfield’s end.

    “The committee will review all these interests and make the necessary recommendation to the government on the next line of action,” he emphasised.

    Background

    Parliament in July 2025 approved a one-year transitional mining lease agreement between the Government of Ghana and Abosso Goldfields Limited for continued gold mining operations at Damang, located in the Wassa West District of the Western Region.

    The lease follows the expiration of the previous agreement on April 18, 2025, and is scheduled to run until April 2026.

    It is explicitly non-renewable and prohibits any extension, transfer, mortgage, or related transactions beyond the stated expiry date.

    Initially, the government had planned to take over operations after the expiration of the original lease.

    However, following further consultations, it agreed to extend the arrangement by one additional year under strict non-renewable terms.

    Mining Sector Investments

    There have been concerns that the government’s plan to review the regulations and laws covering the mining sector is already affecting capital attraction into the country.

    But speaking on PM EXPRESS, Mr Tandoh insisted that current market data does not support these claims.

    “We have more companies that have come in to commence mining,” he added.

    The Acting Chief Executive of the Minerals Commission noted that every proposal will be given the needed consideration and attention.

    “We have a lot of mining firms that want to come into the country, and by the close of next year, the total number of mining companies operating in the country could witness some significant increase,” he explained.

    Supporting Mining Communities

    Isaac Andrews Tandoh also disclosed that under the revised mining law, the government is seeking to legislate support for host communities.

    He further clarified that they want to move away from this practice where support for these communities is seen as corporate social responsibility programmes to something that everyone can track and follow.

    The Acting Chief Executive also revealed that there are proposals that these mining firms could “give out” a fraction of their products to support this community development initiative.

    On the galamsey fight, the Chief Executive noted that “we should see it as a marathon and not a single race”, insisting the government is committed to dealing with this challenge.

    He concluded by saying,“We want our work to speak for us on the galamsey fight.”

     

  • Headway made in E&P, Azumah Resources impasse

    Headway made in E&P, Azumah Resources impasse

    A statement from Azumah Resources – a party in the impasse over Black Volta gold mine – has confirmed that it has begun mutual negotiation with Engineers and Planners (E&P) for a resolution.

    It described the engagement as ‘confidential’ and ‘in good faith’ as the discussions are based on “. applicable laws, commercial norms and in consultation with the appropriate regulatory bodies.”

    The headway falls in line with the ultimatum given by the Minister of Land and Natural Resources, Emmanuel Armah-Kofi Buah, some days ago, directing both parties to resolve their differences amicably within seven days, warning that failure to do so will result in a governmental decision “in the best interest of the country”.

    However, the minority in Parliament has raised concerns over the case, indicating that the dispute poses economic, legal and political risks.

    “The unresolved standoff between E&P and Azumah Resources over the Black Volta gold mine is already affecting Ghana’s economy and international image”, Kwaku Ampratwum-Sarpong, MP for Mampong said in a statement last week.

    “This mine holds the potential to generate hundreds of direct jobs and thousands more indirectly.”

    The Minority further warn that delays in resolving the impasse mean missed royalties, stalled development funds, and uncertainty for other mining investors looking at Ghana.

    They argue that the impasse has stalled vital mining activity in the Upper West Region, depriving communities and the state of critical economic benefits.

    In a period of economic restructuring, such opportunity costs are hard to justify.

    Politically, the Minority raised concerns about conflicts of interest due to E&P’s perceived links to power. Its founder and Chief executive Ibrahim Mahama is the brother of Ghana’s incumbent President John Dramani Mahama

    “It is as much for the benefit of E&P and its eminent founder that such concerns be properly and effectively managed,” Mr Ampratwum-Sarpong said, warning that institutions like the ECOWAS Bank for Investment and Development (EBID) must also observe the ‘do no harm’ principle in ongoing litigation.

    The Caucus has posed six detailed questions to the Minister of Lands and Natural Resources and insists Parliament must be fully involved before any resolution is finalised.

    “Let this Parliament not be found wanting,” they concluded. “We must uphold the rule of law and protect Ghana’s international standing as a stable mining jurisdiction.”

    The future of Ghana’s highly anticipated US$100 million Black Volta Gold Project (some analysts have revalued it at US$300 million based on the recent surge in gold prices) hangs in the balance, if the Minister of Lands and Natural Resources, Emmanuel Armah-Kofi Buah, ultimatum is not met by the two companies embroiled in a dispute over its acquisition.

    In a press release issued days ago, Mr Buah ordered Azumah Resources Limited as well as Engineers & Planners (E&P) to resolve their differences amicably within seven days, warning that failure to do so will result in a governmental decision “in the best interest of the country”.

    This directive injects a new level of urgency into a dispute that threatens the timely commencement of what has been slated to be Ghana’s first large-scale, wholly indigenous gold mining operation.

    The Black Volta Gold Project, a significant venture with US$100 million in financing from the ECOWAS Bank for Investment and Development (EBID) for its acquisition by E&P, has been hailed as a landmark in Ghanaian-led participation in the extractive sector.

    The minister’s statement, addressed to both companies, explicitly acknowledged “earlier correspondence” and “various press releases and public statements” that have circulated concerning the dispute.

    This suggests a growing public awareness and potential concern over the impasse, which could derail a project championed for its potential to drive local ownership and economic development.

    “I have decided to grant the parties a final period of seven (7) days within which to resolve the matter amicably. Should this period elapse without a mutually agreed resolution, a decision shall be taken in the best interest of the country,” Mr Buah’s statement read, underscoring the government’s determination to see the project proceed.

    While the specifics of the dispute between Azumah Resources and E&P were fully detailed in the minister’s release, it is understood to revolve around the acquisition process and potentially lingering financial claims or operational aspects related to the Black Volta Gold Project.

    Azumah Resources, an Australian gold exploration and development company, has historically held significant interests in the Wa-Lawra region of Ghana, where the Black Volta Project is located.

    E&P, a prominent Ghanaian-owned engineering and construction firm led by Ibrahim Mahama, President John Dramani Mahama’s brother, entered the scene with its ambitious acquisition plans.

    The Minister’s firm stance also included a direct appeal for restraint: “I strongly urge all parties to refrain from addressing this matter through the media and instead focus on constructive dialogue and responsible engagement.”

    This acknowledges that the dispute has already spilt into the public domain through various channels, potentially complicating resolution efforts.

    To facilitate a swift resolution, the Minister has directed the Minerals Commission, Ghana’s mining sector regulator, to “facilitate and support the parties in resolving their difference in order to ensure the timely commencement of the project.”

    The Minerals Commission is mandated to advise the government on mineral policy and ensure compliance with mining laws and regulations.

    Their involvement is crucial in mediating such high-stakes disputes.

    The Black Volta Gold Project is expected to significantly boost Ghana’s gold output and local content in the mining sector.

    Ghana is Africa’s largest gold producer, with an annual output exceeding 4.2 million ounces in 2023. Production is expected to reach up to 5.1 million ounces in 2025. Projects like the Black Volta are seen as vital for increasing value retention within the country, fostering job creation, and strengthening the national economy.

    Delays in such projects due to corporate disputes can have significant economic ramifications, impacting investor confidence and revenue projections.

    All eyes will now be on Azumah Resources and Engineers & Planners this week to see if they can reach a mutually agreeable settlement.

    Failure to do so would trigger direct intervention from the Ministry, with potentially far-reaching implications for the future of the Black Volta Gold Project and the companies involved.

  • Damang mines takeover: MinCom dispels lack of local capacity sentiment

    Isaac Andrews Tandoh addresses stakeholders on Ghana’s takeover of the Damang mine.

     

     

     

    Adnan Adams Mohammed

     

    The Minerals Commission has defended the government’s decision to assume operational control of the Aboso Goldfields Limited’s Damang mine, from Goldfields Ghana as the local subsidiary of the South African multinational has failed to meet lease renewal requirements.

     

    The decision, announced by the Lands Ministry last week, has since ignited debate by stakeholders in the business and mining sectors.

     

    A senior official of the Commission has described Gold Fields’ business style as exploitative, stressing that instead of reinvesting in Ghana, the company chose to acquire assets in other countries. However, the regulator of the mining industry believes Ghanaian-owned companies now have the financial muscle and technical expertise to run large-scale mining operations challenging long-held assumptions that capital constraints necessarily leave the sector in the hands of foreign multinationals.

     

    “Unlike those days when people couldn’t access funding, it’s a thing of the past,” the Minerals Commission Deputy CEO, Isaac Andrews Tandoh said in an interview in reaction to the government’s unexpected decision. “Now we have groups and companies in Ghana—look at BCM, Engineers and Planners, Rockshore—they’re all raising hundreds of millions of dollars to finance equipment and operations.”

     

    He cited major deals involving local firms to underscore his point.

     

    “Engineers and Planners signed a US$250 million deal with Caterpillar. BCM had strong Caterpillar financing. Another company has over US$100 million in financing from Leibher. Rockshore and is buying equipment worth hundreds of millions to work in Ghana,” he said.

     

    Mr. Tandoh questioned the logic of keeping strategic mineral resources under the control of foreign entities that, in his view, prioritize profit repatriation over local development.

     

    “Last year alone, Tarkwa and Damang Mines made over US$600 million in profit. How much of that stayed in the country? Your guess is as good as mine,” he remarked.

     

    “We’ve gotten to that point where this cannot continue. Ghanaians deserve better.”

     

    According to him, the government has treated Gold Fields more than fairly, offering them generous terms that go beyond a typical mining lease.

     

    “After giving the 30-year lease to Gold Fields, the government even bettered the situation for them with a development agreement,” he revealed.

     

    “That agreement waived a number of their tax liabilities, especially on fuel. But instead of using their profits to reinvest in Ghana, Mr. Tandoh claims the company focused on overseas acquisitions.

     

    “They were busy buying mines in Canada and Chile, Osisko and others. And they can’t tell me that wasn’t from Ghana’s profits,” he said.

     

    “It’s difficult to move money out of Australia, but in Ghana, you can move it freely.”

     

    The Minerals Commission boss insists the government isn’t out to kick foreign investors out of the mining sector.

     

    “We’re not saying we’re going to chase all foreign mining companies away,” he clarified.

     

    “We’re going to support them to do their work. But it must be done in a way that serves the people of this country.”

     

    He expressed particular concern that in the final two years of their lease, Gold Fields resorted to treating stockpiles rather than fully investing in mining operations.

     

    “That’s just taking free cash from Ghana without actually working. This cannot continue,” he asserted.

     

    The takeover of the Damang mine comes at a time when the government is under pressure to ensure that Ghana derives greater value from its natural resources.

     

    Mr Andrews Tandoh’s remarks signal a more assertive posture aimed at protecting national interests while still encouraging responsible foreign participation.

     

    Aboso Goldfield’s current lease expired on April 18, and the company had reportedly applied for a lease extension in December 2024. However, the government intends to take over the operations and has instructed its parent, Goldfields of South Africa – a leading global gold producer – to vacate the site by April 25, 2025.

     

    Meanwhile, several major stakeholders in the mining industry have expressed their satisfaction with government’s decision.

     

    Among such stakeholders is a group called ‘Concerned Youth of the Damang Site Catchment Area’ which has expressed their support for the government’s decision not to renew the mining lease of Abosso Goldfields Limited (AGL) in Damang.

     

    The Convener of the Concerned Youth of the Damang Catchment Area, Emmanuel Afful said: “You cannot be in a town for three decades and leave it looking abandoned. There’s no hospital, no functional water systems in some communities, and the same dusty, pothole-ridden roads. Compare Damang to Kenyasi or Akyem, where other mining companies have built hospitals and better infrastructure. Three decades should have transformed Damang, but instead we got neglect.”

     

    Eric Garibor, another convenor of the group indicated that, Goldfields failed to prioritize the welfare of locals despite promising to do so.

     

    “This wasn’t a partnership. It was extraction with exclusion. Now that they are gone, let us chart a new course. A Ghanaian success story is possible. We’ve seen it at Awaso. Let’s do the same in Damang,” said Eric Garibor.

     

    Also, the Ghana Extractive Industries Transparency Initiative (GHEITI) and the Minerals Commission have already backed this move by the government, highlighting the opportunity to maximize national benefit from the mineral resources.

     

    The Chairman of GHEITI, Dr. Steve Manteaw, welcomed the decision, noting that the country must prioritize value for money in lease agreements.

     

    “There have been instances where certain expired leases were renewed for the holders to only flip, sell the mine and make huge profits which should have come to the state. I am not saying that is the reason for the decision of the Minerals Commission in this particular instance – but I won’t be surprised – but let’s believe that the regulator is working in the best interest of the state. I don’t believe there’s any cause for worry,” he explained.

     

    However, the Africa Centre for Energy Policy (ACEP) has called on the Ghanaian government to suspend plans to take over the gold mine, urging a transparent and legally guided approach to resolving its ongoing dispute with Abosso Goldfields Limited (AGL).

     

    In a statement issued last week, ACEP’s Executive Director, Benjamin Boakye, advised the government to exercise restraint and re-engage AGL in dialogue.

     

    “ACEP calls for a halt in the operation to expropriate the mine tomorrow. The government needs to exercise restraint, renew dialogue, and pursue a legally guided resolution that protects the interests of both the state and investors,” Boakye stated.

     

    Boakye cautioned that abrupt and disputed actions could have far-reaching implications for Ghana’s mining industry.

     

    “The government’s approach to this matter should reflect diligence, legal compliance, and a genuine commitment to Ghana’s long-term mineral wealth. A rushed and disputed decision not only risks international litigation and reputational damage, but also undermines investor confidence and the rule of law.

     

    But the Minister for Lands and Natural Resources, Emmanuel Kofi Armah Buah, has defended the government’s decision not to renew the mining lease of Goldfields Ghana’s operations at the Damang Mines.

     

    “Goldfield has failed to allocate any budget for exploration at Damang for the past two years. In essence, the company was not prepared, as required by law, to expend resources to conduct exploration activities to discover new ore bodies or convert the mineral resources into mineral reserves to support a mining programme or operation”, explained Armah Buah, addressing a press conference in Accra last week, noting that Goldfields Ghana failed to meet expectations.

     

    “This lack of investment raises serious concerns about the company’s commitment to sustainable mining practice and the long-term viability of this particular mine,” he stated.

     

    Similarly, the Deputy Chief Executive Officer of the Minerals Commission, Isaac Tandoh, revealed that Gold Fields Limited failed to comply with explicit instructions to engage the Commission regarding the extension.

     

    He asserted that for that matter, Ghana is ready to take over and operate the Damang Mine.

     

    Tandoh further revealed that all discussions held so far point to a state-led operation of the Damang Mine after Gold Fields’ exit.

     

    “In all the meetings I have been in and all the discussions I have had, we are looking at the state running the mine. No individual will be made to do that,” he added.

     

     

  • Ghana Lithium mining agreement to be ratified – Lands Minister

    Hon Abu Jinapor

     

    Adnan Adams Mohammed

     

    The Minister for Lands and Natural Resources, Samuel Abu Jinapor, has revealed that the mining lease agreement between Ghana and Barari DV Ghana Limited for lithium extraction will be presented to Parliament for ratification early next year.

     

    This announcement was made during a press briefing last week, where the minister addressed concerns over the lithium mining lease signed on October 20, 2023.

     

    According to the Damongo legislator, the mining lease mandates ratification by Parliament, and failure to undergo this process would result in the annulment of the lease.

     

    “There has been an issue of ratification of the lease. It has been raised by several people. This has never been lost on us as this is expressly provided for the mining lease granted to Barari DV Ghana Limited. Specifically, Clause 1E of the lease states ‘the mining lease is subject to ratification by Parliament in accordance with Article 2681 of the constitution and section 54 of Act 703’. ‘Upon execution of this mining lease, the Minister shall cause the mining lease to be laid in Parliament for ratification’.”

     

    “By the very term of the lease, therefore, ratification by Parliament is a condition precedent, he said, “as an unratified mining lease confers no enforceable right, and the government has always been mindful of this decision.”

     

    “The mining lease in question will be laid before Parliament for ratification,” he added.

     

    For instance, a former Chief Justice of Ghana, Sophia Akuffo, has expressed the view that the recently signed lithium lease by the government lacks completeness without parliamentary ratification.

     

    According to her legal analysis, this particular transaction should have undergone the process of submission to Parliament for approval.

     

    “My legal view is that it is a transaction that requires ratification, it is not complete. This is a document, it is signed and sealed and delivered but it is a deal that has to be ratified by a named authority, that is the Parliament of the Republic of Ghana,” she said while speaking as a Distinguished Scholar of the Institute of Economic Affairs (IEA) in Accra on Tuesday, November 28.

     

    Meanwhile, the Minerals Commission responded to criticism from certain individuals regarding the lithium deal between the government of Ghana and Barari DV Ghana Limited.

     

    In a press statement issued on Monday, December 4, the Minerals Commission pointed out that the critical statements made by some individuals stem from a lack of thorough reading of the agreement.

     

    The statement emphasized that many concerns are based on inaccurate assumptions and unsupported assertions.

     

    The Minerals Commission reiterated that the lithium deal is in the best interest of the nation.

     

    The mining lease, granted for 15 years to Barari, a subsidiary of Atlantic Lithium Limited, an Australian company listed on the Australian Securities Exchange (ASX) and the Alternative Investment Market (AIM) of the London Stock Exchange, covers an area of 42.63 km² in and around Ewoyaa in the Mfantseman Municipality of the Central Region.

     

    The $250-million project, located in Ewoyaa, Mfantseman Municipality in the Central Region, is set to commence production by 2025.

     

    The deal includes a 10% royalty and 13% free carried interest by the state, surpassing the existing 5% and 10%, respectively, for other mining agreements.

     

    Barari DV Ghana Limited is also required to contribute 1% of its revenue to a community development fund for the upliftment of the mining area.

  • Miners calls for security deployment to legal mining sites

    The Chief Executive Officer of the Chamber of Mines has in the wake of the latest invasion of AngloGold Ashanti’s mining site by illegal miners, reiterated his calls for the state to deploy security to legal mining sites in the country.

     

    Speaking in an interview last week, Sulemanu Koney stated that the deployment of security at the mining sites will prevent any interference from community members mostly engaged in illegal small scale mining.

     

    “At the end of the day, we want appropriate security deployment at the mining sites so that they [miners] can focus on the core business of mining for the country,” he appealed.

     

    According to him, these calls have been made in the past, leading to some engagement with the government and the Ghana Police Service at some point.

     

    Unauthorised persons underground are able to exit on foot – AngloGold Ashanti on trapped illegal miners

     

    Mr Koney’s calls come against the backdrop of reports that about 300 illegal miners had been trapped in one of the shafts at Anwiam in the Obuasi East District of the Ashanti Region.

     

    The miners reportedly entered the underground shaft in search of gold deposits but were unable to come out after all exit routes were closed.

     

    Meanwhile, AngloGold in a statement issued on May 30 clarified that unauthorised individuals who entered the mine are able to exit on foot through the existing ramp and main access points, and no one has been confined underground.

     

    “Unauthorised persons underground are able to exit on foot, via the existing ramp, through the main access of this mining area. No person underground has been confined in any way, and the main exit ramp from the mine remains open,” portions of the statement read.

     

    Reacting to the happenings, Sulemanu Koney described it as unfortunate.

     

    He said the incidence of illegal miners making unauthorised entries into legal mining sites is “becoming a nightmare for us as an industry.”

     

    He wants the relevant stakeholders to support the industry to “quell such an unfortunate situation.”

  • Mining reforms: Gov’t committed as local banks to handle 60% of sector’s financial services

    Mining reforms: Gov’t committed as local banks to handle 60% of sector’s financial services

    Adnan Adams Mohammed

     

    As government shows commitment towards reforms in the mining sector and deepening local content, all mining companies are expected to ensure that at least 60% of financial services including revenue from the sale of minerals go to the local Banks.

     

    This is captured in the fifth edition of the new procurement list which now has 50 items for the provision of goods and services of which the Minerals Commission has commenced the implementation.

     

    A statement, signed and issued last week by the MinCom said the increase in the items on the list comes at a time when receipts from mineral revenues and investments hover around US$ 10 billion. The local banks such as CBG, National Investment Bank, Ghana Commercial Bank and Agricultural Development Bank are likely to benefit greatly. The same applies to insurance services which also require a minimum of 60% of all insurance and reinsurance placements be made with insurance companies exclusively owned by Ghanaians.

     

    “For instance, there are four huge new projects with an investment of about US$ 1.7 billion”, Chief Executive Officer of the Minerals Commission, Martin Kwaku Ayisi revealed. “The new projects are the US$ 850 million Ahafo North gold mine project by Newmont Ghana Gold Limited, US$ 500 million gold project currently under construction by Cardinal Namdini Mining limited in the Talensi District of the Upper East Region, the US$ 200 million gold mine to be constructed in the Upper West Region and the US$ 125 million lithium project at Ewoyaa in the Central Region”.

     

    Additionally, Mr. Ayisi stated that some mines are undertaking expansion and redevelopment. The undergoing expansion includes the Ahafo South mine of Newmont which now covers the Subika underground. Golden Star Resources is spending about a billion dollars to expand the Wassa underground mine.

     

    The mines being redeveloped are the Anglogold Ashanti Obuasi mine where a billion dollars has been expended and the Bibiani mine of Mensin Gold Ghana Limited which started production in the last quarter of 2022. The redevelopment of the Bibiani mine is over US$200 million dollars

     

    “It is the expectation of the Minerals Commission that these investments will support the growth of the economy and boost local participation under the new procurement list.” MrAyisi added.

     

    The new procurement list replaces the fourth edition of the procurement list which was published by the Commission in early 2022.

     

    The Minerals and Mining (Local Content and Local Participation) Regulations, 2020 (L.I. 2431) came into force on 22 December 2020.

     

    The purpose of the regulations among others is to promote job creation using local expertise, goods and services in the mining industry and their retention in the country. The law is also to achieve the minimum in-country spending for goods and services and create mining and mineral-related industries that will sustain economic development.

     

    Pursuant to Regulation 7 of L.I. 2431, the Commission is required to publish a local procurement list that stipulates the goods and services with Ghanaian content which are to be procured in the country. Regulation 7(3) of L.I. 2431 further states that the Commission shall review the procurement list annually.

     

    Meanwhile, the Deputy Minister for Lands and Natural Resources, George MirekuDuker, says the government is determined to build a mining sector which is resilient and fortified enough to withstand the next global crisis.

     

    Delivering the keynote address at the opening day of the West African Institute of Mining Metallurgy and Petroleum (WAIMM) Annual Industry Conference, last week, Hon Duker said the mining industry was not spared from the dire impact of the twin crisis of COVID-19 and Russia-Ukraine war.

     

    He disclosed that the industry was badly hit but the government as part of its economic reform is introducing new policies that will lead to the creation of an economy that will be able to repel the shocks of the next global crisis.

     

    According to the Deputy Minister, the mining industry has taken the lead in the reformation drive by promoting responsible and sustainable mining practices.