Finance Minister Dr. Cassiel Ato Forson has signalled a potential shift in Ghana’s approach to mining lease renewals, cautioning that the practice of extending leases only for companies to subsequently sell or transfer the assets may no longer be viewed as acceptable under the country’s evolving mining policy framework.
The Minister’s remarks come as government prepares to make a key decision on the future of the Tarkwa Mine, one of Ghana’s most valuable mining assets, which is approaching the end of its current lease arrangement.
Speaking in an interview with Bloomberg, Dr. Forson expressed concern about transactions in which mining companies secure lease renewals and then dispose of the assets shortly afterward, potentially benefiting from the extension without continuing long-term operations.
Government Questions Lease Renewal Intentions
Referencing a recent transaction involving Newmont, the Finance Minister revealed that a mining lease renewed by government was reportedly sold for approximately US$1 billion shortly after the extension was granted.
“We renewed it; the following month they sold it for a billion dollars and only paid capital gains after the state,” he stated.
Although he acknowledged that government received tax revenues arising from the transaction, Dr. Forson argued that such arrangements raise broader policy concerns about the purpose of lease renewals.
“You can’t just renew your lease and sell it the following month. The intention out there was for us to renew the lease for them to continue in business,” he added.
According to the Minister, lease extensions are intended to support sustained production, investment and employment within the mining sector rather than facilitate short-term asset transfers.
Tarkwa Mine Discussions Intensify
The comments come amid ongoing discussions regarding the future ownership and operation of the Tarkwa Mine.
The asset, which was originally state-owned, has been operated under a long-term lease arrangement with a foreign mining company. Under the terms of the agreement, the mine is expected to revert to the state when the lease expires unless a new arrangement is negotiated.
Dr. Forson disclosed that government is currently evaluating whether the asset should return to the State Mining Company or whether an extension should be granted to the existing operator.
“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.
He indicated that government intends to conclude discussions before the end of the year to provide certainty for investors and stakeholders.
“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. And so before 2026, we’ll have some agreement,” he said.
Reforms Target Greater Value for the State
Beyond the debate over lease renewals, the Finance Minister defended recent reforms aimed at increasing the benefits Ghana derives from its mineral resources.
Among the measures is the introduction of a sliding-scale royalty regime that allows the state to capture a larger share of mining revenues when global gold prices rise significantly. “We introduced the sliding scale to be able to capture the economic rent,” Dr. Forson noted.
According to the Minister, the policy was developed in consultation with industry stakeholders and forms part of broader efforts to ensure Ghana retains greater value from its natural resources while maintaining an attractive environment for responsible mining investment.
The outcome of the Tarkwa Mine discussions is expected to serve as an important test case for Ghana’s future approach to mining leases, resource ownership and long-term value creation within the extractive sector.
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