The Institute of Economic Affairs (IEA) has strongly opposed the planned sale of Newmont’s Akyem Gold Mine to China’s Zijin Mining Group for $1 billion.

The IEA argues that the sale undermines Ghana’s economic interests and violates key terms of the mine’s lease agreement, set to expire in January 2025.

In a press release dated Monday, October 21, 2024, the IEA highlighted that the original lease agreement requires government approval for any transfer of ownership, and there is no record of such approval.

Furthermore, the Institute stressed that Ghanaian investors should be prioritized, aligning with President Akufo-Addo’s previous statements on keeping mineral wealth in local hands.

Citing flaws in the original contract, including inadequate royalties and taxes, the IEA called for the sale to be blocked and for Parliament to reject it.

They emphasized the importance of national ownership in the mining sector to ensure long-term economic benefits for Ghana.

The IEA warned that allowing the sale to go through would mirror colonial-era contracts, which favoured foreign interests, leaving Ghana with minimal returns.

They advocated for public-private partnerships (PPP) as an alternative solution to keep control of the mine in Ghanaian hands.

“The IEA wishes to state categorically that the purported sale by Newmont of the Akyem Gold Mine to Zijin is unjustified and legally flawed and must, therefore, not be ratified by Parliament,” it stated.