GHANA is considering handing control of Gold Fields’ Tarkwa mine to local companies when the operation’s leases expire in April, said Bloomberg News on Friday.
The potential move comes as the West African nation’s government seeks greater ownership of its gold industry amid record bullion prices, the newswire added.
Local miners would need to submit bids for government evaluation if the plan proceeds, though authorities are also weighing a lease extension for Gold Fields, said Bloomberg citing people familiar with the matter who asked not to be identified as discussions are preliminary.
Tarkwa accounted for a fifth of Gold Fields’ total output last year, making it the South African miner’s most significant asset. Gold Fields said it had submitted an early application for lease renewal and that constructive engagements with the government were continuing.
Ghana, Africa’s largest gold producer, has already moved to capture more mining revenue by raising royalties on bullion to as much as 12% from 5% and restricting bids for a separate former Gold Fields operation to Ghanaian companies, said Bloomberg.
President John Mahama’s administration is also facing domestic pressure to act against South African firms following xenophobic protests in that country, which prompted more than 2,700 Ghanaians and other African nationals to return home.
Any transfer of Tarkwa would be evaluated against commitments on environmental rehabilitation, local employment and infrastructure development in surrounding communities, the people said. Ghana’s Ministry of Lands and Natural Resources declined to comment.
