Why IEA is urging gov't to reject Gold Fields lease extension for Tarkwa mine

Policy think tank, the Institute of Economic Affairs (IEA), has called on the government to reject the proposed 20-year lease extension application by Gold Fields Limited for the Tarkwa Mine.

The institute has also appealed to Parliament, traditional authorities, labour groups, Civil Society Organisations (CSOs) and Ghanaians to resist any attempt to approve the proposed lease extension.

It explained that genuine national ownership and good management of mineral resources would generate greater economic, industrial and social benefits for the country.

Read also: Chamber of Mines mounts defence for Gold Fields' application to extend Tarkwa mining lease

Gold Fields

At a press conference in Accra last Wednesday [May 13, 2026], a former Chief Justice and member of the Council of State, Justice Sophia Akuffo, who stated the IEA's position, said the country must seize the opportunity presented by the expiration of the company's mining lease in April 2027 to reclaim ownership and control of the Tarkwa mine.

She explained that recent comments by Gold Fields  Chief Executive Officer, Mike Fraser, confirmed that the company had formally applied for an extension of its lease and was actively engaging the government officials to secure approval.

Justice Akuffo said the mine produced about 500,000 ounces of gold annually with an estimated market value of more than $2.3 billion at the prevailing global prices, adding that Gold Fields Ghana s operations accounted for nearly 25 per cent of the company s global production portfolio.

Despite more than three decades of mining activities in Tarkwa, she said many communities in the enclave had deteriorating roads, inadequate healthcare and educational infrastructure, unemployment and other socio-economic challenges, while the bulk of the economic benefits were exported.

Technical capabilities

Justice Akuffo, who is also a Fellow of IEA, said the country had the technical capacity and experienced professionals to manage the Tarkwa mine if the government declined the lease extension, citing contributions of the University of Mines and Technology (UMaT) in training internationally recognised mining engineers, geologists and managers over the years.

Many large-scale mining operations in Ghana are already managed predominantly by Ghanaians, while substantial operational activities are undertaken by indigenous firms such as Engineers & Planners and Rocksure International on behalf of foreign mining corporations. 

Major operational activities at Gold Fields' Tarkwa Mine itself are presently executed by Ghanaian mining service providers,  she added.

Natural resources

A former Speaker of Parliament and Fellow of the institute, Professor Aaron Mike Oquaye, said the country needed to take full control of its natural resources, arguing that it must move into an era where the nation s own resources directly benefit the people.

He said that continued foreign control of key mineral assets had contributed to underdevelopment in mining communities and to the country s inability to fully fund critical social interventions, such as education, health and social protection programmes.

Prof. Oquaye, however, said the country could engage foreign companies only as service providers under strict national control, rather than concession holders.

Nurturing local businesses

The Board Chair of the IEA, Dr Charles Mensah, reiterated the need to address the country s recurring economic challenges, noting that the nation had engaged the International Monetary Fund (IMF) about 17 times over 40 years, indicating persistent fiscal instability and recurring economic distress.

He stressed that the country s natural resources remained its most important untapped asset for economic transformation.

Dr Mensah, therefore, stressed the need to develop a strong indigenous private sector capable of participating meaningfully in large-scale industrial activities and to deliberately nurture local businesses to take advantage of major economic opportunities, create jobs, and drive industrial growth.

The Member of Parliament for Mpraeso, Davis Ansah Opoku, supported the call for the government to reject the lease renewal and to support state ownership of mining operations in the country.