Former Chairman of Parliament’s Mines and Energy Committee, Dr Kwabena Donkor, has urged the government to pursue significantly improved fiscal terms if it decides to renew Gold Fields’ Tarkwa mining lease, arguing that Ghana must secure a larger share of the value generated from its mineral resources.
His comments come as the country prepares to consider Gold Fields’ application for a 20-year renewal of the Tarkwa lease, which is expected to expire next year.
Speaking in an interview, Dr Donkor stressed that mining lease renewals should not be viewed as routine administrative exercises or automatic extensions of existing agreements.
According to Dr Donkor, the expiration of a mining lease offers the state an important opportunity to reassess the economic benefits derived from the concession and negotiate terms that better align with Ghana’s development priorities.
“When your lease expires, you don’t have an automatic right. In particular, when you have used a model that shows us that the actual mining is done by Ghanaian contractors. It’s just that you have your brand name on it.” - Dr Donkor
He argued that while multinational mining firms provide capital, technology, and access to global markets, Ghanaian contractors are already deeply involved in operational activities. Despite this participation, he said much of the value generated after production continues to leave the country.
Calls for Improved Value Retention
Dr Donkor outlined two possible approaches for government consideration. The first is a stronger state-led mining model in which a Ghanaian State Gold Mining Corporation would hold strategic mining assets and contract local firms to undertake operations.
The second option would allow Gold Fields to retain the concession under a newly negotiated lease with substantially improved fiscal conditions.
“There is another option where the lease is renewed but on better fiscal terms. Give us an offer that we cannot refuse. We want to retain a higher value of the post-production cost in Ghana.” - Dr Donkor
He emphasized that any future agreement should be treated as an entirely new lease rather than a continuation of previous arrangements.
“It has to be a new agreement. It will be a new lease. That is different from extending. If we are negotiating a new lease, it has to be on better fiscal terms,” he added.
The debate surrounding the Tarkwa lease renewal reflects broader national discussions about mining governance, resource ownership, and the benefits Ghana derives from its status as Africa’s leading gold producer.
With global gold prices remaining elevated, policymakers are increasingly examining whether existing mining agreements provide adequate returns to the state, host communities, and the broader economy.
The Minister for Lands and Natural Resources, Hon. Emmanuel Armah-Kofi Buah, has previously indicated that future lease renewal applications will be assessed against criteria including legal compliance, environmental stewardship, community obligations, and alignment with national development goals.
Balancing National Interests and Investor Confidence
While calls for stronger fiscal returns continue to gain momentum, analysts note that government must also preserve investor confidence in Ghana’s mining sector.
Mining remains a capital-intensive industry requiring long-term investment commitments. Industry stakeholders have therefore stressed the importance of maintaining a transparent and predictable regulatory environment.
Dr Donkor maintains that the Tarkwa lease renewal process presents a rare opportunity for Ghana to secure a more balanced arrangement that strengthens national value capture while maintaining a stable investment climate.
As discussions intensify, the outcome of the Gold Fields application is expected to serve as a significant test of Ghana’s evolving approach to resource governance and the future direction of its mining policy.
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