Accra:Ghana is considering the potential for local companies to take over significant mining operations as the country decides on renewing leases for a major Gold Fields Ltd. operation, a key government official has stated.
According to Ghana Web, Emmanuel Armah-Kofi Buah, the Minister for Lands and Natural Resources, discussed the government's careful evaluation of local companies' capability to manage large-scale mining operations. This comes as President John Dramani Mahama's administration has moved away from the automatic renewal of mining rights for international investors, opting instead for a case-by-case assessment.
The new approach was evident six months ago when Gold Fields was required to transfer its Damang mine back to state control, which was subsequently tendered exclusively to Ghanaian-owned companies. This tender was won by a company owned by the president's brother. The situation regarding Gold Fields' larger Tarkwa mine remains under scrutiny, as its lease is set to expire in April.
Buah highlighted that the government's policy is not to forcibly take mines from foreign companies but to consider the best management options for long-term operations. Gold Fields has submitted a 20-year plan for Tarkwa, marking it as a critical gold source for the company. Meanwhile, local firm Engineers and Planners Co. Ltd, owned by the president's brother, has initiated arbitration against Gold Fields over alleged underpayment claims.
Ghana's parliament has recently ratified lease extensions for other international companies, indicating a balanced approach to foreign and local interests. The government is also preparing to revise mining legislation to reduce lease durations and increase its control over renewals, aiming to pass this by year's end.