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Ghana’s IEA issues Press Statement on Newmont’s unacceptable Sale of Akyem Gold Mine Project to Chinese Company for US$ 1 Billion Dollars

IEA PRESS RELEASE – Newmont’s Akyem Gold Mine Sale

The Institute of Economic Affairs IEA in Ghana has issued a press statement expressing their displeasure at the flawed and unacceptable nature of the planned sale of Ghana’s Akyem Gold Mine to Chinese Mining Group Zijin Mining Group for the sum of approximately US$ 1 billion Dollars by Newmont Ghana. And have added that the arrangement is not in the interest of Ghana.

The IEA indicates that the project lease was signed between Ghana Government and Newmont on 19th January, 2010 and has an expiry period of 15 years, i.e. 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 lease is also 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.

The IEA iterated “that as far as we are aware, Newmont and Government have not reached any agreement for the mine to be transferred to Zijin for the unexpired term of the lease, i.e. up to 19th January, 2025. The IEA is also not aware that Newmont has evoked the extension clause and that Government has agreed to such an extension. The IEA wishes to point out that apart from Newmont, no other company has an original locus or right in the extension of the Lease.”

About the IEA

The Institute of Economic Affairs Ghana (IEA) is Ghana’s Premier Public Policy Institute. Established in 1989 by Ghanaian economist, Dr. Charles Mensa, the IEA was set up with a view to broadening the debate on public policy; engendering private sector led economic growth, and strengthening the pillars of democracy.

The mission of the IEA is to promote good governance, democracy and a fair market economy. We believe that the creation of an environment in which economic, social, political and legal institutions function openly and freely is the key to sustainable economic growth and human development.

Download the Complete Press Statement here

Source: Institute of Economic Affairs, IEA Ghana

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