In a strongly worded statement, IMANI Centre for Policy and Education has raised concerns over the ongoing sale of Newmont’s Akyem Mine in Abirem, expressing dismay over the apparent disregard for President Nana Akufo-Addo’s earlier commitment to prioritizing local ownership in the acquisition of the mine.

According to IMANI, the pending sale of this major mining asset to a Chinese entity undermines the government’s objective of ensuring that the country’s mineral wealth benefits Ghanaians.

Newmont, one of the world’s leading gold mining companies, according to IMANI announced in 2023 its intention to divest some of its mining assets as part of a strategy to focus solely on “Tier 1” assets.

These Tier 1 assets are defined as those capable of producing at least 500,000 ounces of gold equivalent annually for at least a decade. The Newmont Akyem mine was earmarked for sale, with the sale deadline set for the end of Q1 2025.

According to the policy think-tank, recent reports suggest that the transaction is nearing completion, with a Chinese entity reportedly emerging as the successful bidder for the mine.

“Newmont as an entity has the right to sell to whoever is the highest bidder with the most favorable terms, and that fact is not in dispute, it is rather, the most rational and prudent decision and their sole right to dispense with their assets however they deem fit and beneficial to their interests. However, for a mine of this size to be sold, the government of Ghana should have a right of consent”.
IMANI Centre for Policy and Education

IMANI Centre for Policy and Education further pointed out that in the President’s 2023 State of the Nation Address (SONA), he promised to prioritize local ownership in the sale of Newmont’s Akyem mine, stating that Ghanaian investors should be given the opportunity to acquire the mine to ensure that the country’s mineral resources better serve its citizens.

IMANI argued that this promise has been abandoned, as Ghanaian entities, including those backed by the state’s Minerals Infrastructure and Investment Fund (MIIF), were sidelined in the bidding process.

Franklin Cudjoe, Founding President and Chief Executive Officer, IMANI Centre for Policy and Education

Missed Opportunity for Ghanaian Ownership

The sale of the Newmont Akyem mine presents a unique opportunity for Ghana to reclaim control over its gold resources, IMANI emphasized.

The mine, which has already produced approximately 420,000 ounces of gold, in the expert view of IMANI still holds significant untapped potential.

In an era when countries across Africa are asserting greater control over their natural resources, IMANI questioned why the Ghanaian government would allow such a valuable asset to be sold to foreign interests, particularly when local entities have the capacity to manage the mine.

IMANI pointed to the strategic importance of retaining local ownership, especially in light of the ongoing challenges facing the country’s small-scale mining sector.

With Ghana grappling with illegal mining (galamsey) and the resultant ecological damage, the think tank found it perplexing that the government would willingly cede control of a lucrative, well-managed mining operation.

Furthermore, IMANI strongly opined that retaining ownership could have boosted Ghana’s gold reserves and strengthened its local refinery capabilities, while providing a boost to local employment and economic growth.

A Broken Promise: IMANI’s Criticism of Government’s Actions

The think tank accused the government of failing to seize a “golden” opportunity, questioning why Ghanaian investment vehicles such as MIIF and the Social Security and National Insurance Trust (SSNIT) were not leveraged to enable a local takeover of the mine.

IMANI believes that the President and his advisors, particularly the Minister of Mines and Natural Resources, have failed in their duty to ensure that the country’s mineral wealth is safeguarded for future generations.

IMANI further highlighted the favorable tax regime that Newmont enjoys in Ghana, noting that the company has saved over $2 billion in taxes.

“That is why we find this sudden u-turn and desertion of an emphatic promise which was a highlight of the President’s strategy for this year quite baffling. Obviously, the government has the upper hand to steer negotiations because Newmont isn’t leaving Ghana”.
IMANI Centre for Policy and Education

Given Newmont’s significant investment in the country, including a $1.4 billion project at its Ahafo North mine, IMANI argued that the government was in a strong position to negotiate a deal that would have included local ownership of the Akyem mine.

IMANI contended that Newmont, eager to maintain a positive relationship with the Ghanaian government, would have been amenable to a deal that met both their valuation expectations and Ghana’s interest in retaining control over its mineral resources.

“It is time for Ghanaians to enjoy and benefit from our mineral assets and resources, and Ghanaian entities have the right to pool resources together and take over a mine that is ran by some of the highest standards in the world, as Newmont does.
“It is an amazing opportunity to take up best practices from one of the best entities, as well as create a circular local economy around the gold through injection of local capital, local expertise, local content and situating the revenue locally instead of repatriating it abroad like we have done for over 100 years since the creation of the Obuasi mine some 120 years ago”.
IMANI Centre for Policy and Education

Demands for Accountability and Action

In its statement, IMANI called for urgent action from the government to rectify the situation and prevent the sale of the mine to a foreign entity.

The think tank demanded an immediate parliamentary inquiry into the reasons behind the sale of the Akyem mine to a foreign bidder, and why local Ghanaian entities were overlooked despite their capacity to manage the asset.

The policy think-tank also demanded for an explanation from the presidency on why it failed to honor its commitment to prioritizing local ownership, as promised in the 2023 SONA.

It additionally requested for clarification from the Minister of Mines and Natural Resources on his role in advising the presidency during the negotiations and decision-making process.

Finally, IMANI called for an investigation into why the government did not leverage the capabilities of MIIF, SSNIT, and other Ghanaian investment funds to facilitate local ownership of the mine.

IMANI’s statement ended with a cautioning to President Akufo-Addo, emphasizing that his legacy will be forever tarnished if he allows the sale of the Newmont Akyem mine to proceed without ensuring that Ghanaians are the primary beneficiaries of the country’s gold resources.

“It would be a huge dent on any legacy he intends to keep if he fumbles on the gold issue both at the large-scale level and the small scale level, and history will never be kind to him”.
IMANI Centre for Policy and Education

IMANI’s call for urgent action underscores the importance of protecting national assets from being sold off to foreign interests, particularly when local entities have the capacity to manage them effectively.