The Institute of Economic Affairs Ghana (IEA) says the purported sale of Akyem Gold Mine Projects by Newmont Ghana to China’s Zinjin Mining Group for US $ 1.0 billion is flawed.
IEA Ghana described the sale as unjustified and legally flawed and therefore not to be ratified by parliament.
In a press statement released on Monday October 21, 2024, indicated that, the project lease was signed between Ghana Government and Newmont on 19th January, 2010 and has an expiry period of 15 years, meaning, the lease is valid until 19th January, 2025.
According to the terms, the lease is transferable within the duration period, subject to mutual agreement between Government and Newmont.
The statement also noted that, the lease is subject to extension after its expiry date, by mutual agreement.
‘’The lease has not yet expired and, therefore, any decision by Newmont to sell the mine must be on a transfer basis and must be for the unexpired term only and subject to Government agreement’’.
IEA has therefore suggested two (2) fundamental proposals to help introduce sanity into the governance of Ghana’s natural resources and to reduce corruption.
The first is to amend Article 257(6) of the Constitution that vests Ghana’s natural resources in the President on behalf of, and in trust for, the people, which seems to give him a carte blanche to sign the resources away at will.
The natural resources should rather be vested in the state and every contract should require Parliamentary ratification as per Article 268(1) of the Constitution.
The second is to introduce in the Constitution or the Minerals and Mining Act, 2006 (Act 703) a provision that prohibits Government from signing contracts above a specified monetary value six months to the end of their four-year term. This will prevent incumbent administrations from signing eleventh-hour contracts in favour of their families, friends or cohorts, or for personal gain.