Finance Minister warns against Mining lease flipping as government reviews future of Tarkwa Mine
Finance Minister Dr Cassiel Ato Forson has signalled a shift in Ghana’s approach to mining lease renewals, stating that the government will no longer allow companies to use renewed concessions as opportunities to quickly sell assets for profit.
Speaking in an interview with Bloomberg, the minister said future lease renewals will be subjected to greater scrutiny as part of efforts to ensure that strategic national resources are managed in the country’s long-term interest.
Dr Forson cited a recent transaction involving Newmont, where a mining lease was reportedly sold for approximately US$1 billion shortly after it had been renewed by the government. According to him, such transactions defeat the purpose for which lease extensions are granted.
“We renewed it; the following month they sold it for a billion dollars and only paid capital gains after the state,” he said.
While acknowledging that the government benefited from capital gains tax generated by the sale, he stressed that lease renewals are intended to support continued mining operations and not facilitate the transfer of assets shortly after approval.
“You can’t just renew your lease and sell it the following month. The intention was for us to renew the lease for them to continue in business,” he added.
The minister’s comments come amid ongoing discussions over the future of the Tarkwa Mine, one of Ghana’s largest and most valuable gold mining operations. The mine, which was previously owned by the state before being leased to a foreign operator for 30 years, is approaching the end of its current lease term.
Dr Forson revealed that government is evaluating several options, including allowing the current operator to continue or returning the asset to the State Mining Company.
“There is a conversation around whether we revert it back to the State Mining Company or allow the company to extend the lease,” he explained.
According to the minister, the government intends to conclude discussions before the end of the year in order to reach a clear decision ahead of the lease expiry.
“As I said, we have up to April next year, almost one year. Our intention is to have that conversation to the end of the year. Before 2026, we will have some agreement,” he stated.
Dr Forson also defended recent reforms introduced in the mining sector, particularly the implementation of a sliding-scale royalty system designed to increase government revenue during periods of elevated commodity prices.
He said the policy was carefully developed in consultation with industry players and forms part of broader efforts to ensure the country receives a fair share of returns from its natural resources.
“We introduced the sliding scale to be able to capture the economic rent,” he said.
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