The Institute of Economic Affairs (IEA) has called on government to stop renewing mining leases for foreign companies and reset the sector in favour of full local ownership to maximise national benefits.
The Institute said although it welcomed Parliament’s decision to ratify a 12-month non-renewable lease for Abosso Goldfields Limited as a transitional measure for the Damang Mine, was disappointed that three other mining leases – Newmont Golden Ridge Ltd., Gateway Exploration Ltd, and GBF Associates Ghana Ltd – were renewed without any plan for Ghanaian takeover.
“This represents yet another missed opportunity to reclaim ownership of our natural resources and channel them toward sustainable development,” Dr Eric Oduro Osae, a Fellow at the IEA, said at a media engagement on Thursday.
He noted that Ghana’s mineral wealth had not translated into meaningful economic transformation.
“In 2024, the country exported gold worth USD 11.6 billion, but government revenues from the sector amounted to only USD 2.3 billion, less than 20 per cent of the total value,” he said.
Dr Osae warned that without urgent reforms, Ghana risks another debt crisis by 2027 when repayments on bonds issued under the Domestic Debt Exchange become due.
He urged government to comprehensively review these laws to guarantee stronger national control and benefit.
Dr Osae called for a reset in the mining sector, to restrict future leases to local ownership, by adopting a national policy prohibiting the granting or renewal of mining leases to foreign entities and develop a transition framework for Ghanaian control, drawing lessons from South Africa’s Black Economic Empowerment programme.
He urged government to limit foreign role to service contracts and ensure ownership and revenues remained with Ghanaian companies.
He said there was the need for plans for timely transitions to ensure smooth and orderly transfer of operations to local ownership, avoiding lease extensions justified by “transition needs” or job security concerns.
“Ghana’s most significant endowment lies in its natural resources, which must be mined responsibly, processed locally, and sold as finished products to boost foreign exchange earnings and stabilise the cedi,” he said.
“With several mining leases set to expire within the next three years, this presents a golden opportunity to reset the sector in line with government’s economic transformation agenda and the 24-hour economy programme”.
GNA
