IEA calls for state ownership as Mining licences expire

The Institute of Economic Affairs (IEA) has urged the government to refrain from renewing the mining licences of multinational companies whose leases have expired, describing the move as a decisive step toward full state ownership of Ghana’s mineral resources.

A Distinguished Scholar of the IEA and former Chief Justice, Sophia Akuffo, said allowing expired leases to lapse would strengthen state control over the mining sector and deliver significant long-term economic and strategic benefits.

Speaking at a press briefing in Accra, Justice Akuffo called for the abolition of the current sliding-scale royalty regime and its replacement with a mining framework rooted in state ownership and service-based contracts.

She explained that the upcoming expiration of several mining leases presents Ghana with a unique opportunity to restructure ownership in the sector without breaching existing agreements.

“In the years ahead, the expiry of multiple mining leases offers Ghana a strategic opportunity to chart a new course and adopt a different ownership model without violating current contracts,” she said.

“We therefore urge government not to renew or extend any expiring leases, but rather pursue a new direction anchored in state ownership and service contracts.”

Justice Akuffo rejected arguments that Ghana lacks the technical expertise, capital or capacity to manage its mineral resources under a state-led model.

According to her, effective national ownership and management of mineral resources would generate far greater financial, economic and national security benefits than the royalties currently received under foreign-dominated arrangements.

She noted that state ownership would enhance value addition, increase revenues and strengthen foreign exchange inflows, while also creating jobs, promoting technology transfer, supporting community development and driving long-term structural transformation of the economy.