The Institute of Economic Affairs (IEA) has urged the government to refrain from renewing the mining licenses of multinational corporations whose leases have expired, contending that this action would represent a significant advancement towards complete state ownership of Ghana’s mineral resources.
A prominent scholar from the IEA and former Chief Justice, Sophia Akuffo, stated that allowing expired leases to terminate would enhance the state’s control over the mining industry and unlock substantial long-term economic and strategic advantages.
During a press conference in Accra, Justice Akuffo emphasized the need to abolish the existing sliding-scale royalty system and replace it with a mining policy based on state ownership and service contracts.
She pointed out that the forthcoming expiration of numerous mining leases presents Ghana with a unique opportunity to reform its mining ownership framework without infringing upon existing agreements.
“In the coming years, the expiration of several mining leases provides Ghana with a strategic opportunity to innovate and implement a new ownership model without violating existing contracts,” she remarked.
“Thus, we strongly encourage the government to refrain from renewing or extending any expiring leases, and instead, to embark on a new path centered on state ownership and service contracts.”
Justice Akuffo further asserted that the IEA dismisses arguments frequently presented in support of the current foreign-dominated model, which claim that Ghana lacks the technical expertise, capital, or capacity to effectively manage its mineral resources.
She emphasized that national ownership and proficient management of the nation’s resources would result in financial, economic, and national security benefits that significantly surpass the advantages gained from royalty payments under the current arrangements.
“Ownership generates opportunities for value addition, enhanced revenues, and increased foreign exchange inflows,” she stated.
“It also provides secondary benefits such as job creation, technology transfer, community development, and the long-term structural transformation of the nation.”
