GOLD Fields has today hit back at reports in Ghana that local authorities had opposed an application by the miner to renew Tarkwa’s mining lease.
The Apinto Divisional Council, who are the traditional owners of the land on which Tarkwa Mine operates, were quoted by local press as saying Gold Fields had not delivered sufficient value to the local community. The council called on the Ghana government to reject Gold Fields’s mining lease renewal application, submitted in November.
Gold Fields responded that the views of the Apinto Divisional Council were “not representative” of its past investment in Tarkwa’s community and the country at large, which it said totalled $498m (GHS5.8 billion) in dividends and royalties last year.
It added that its principal negotiating partner was the Ghana government. “Under Ghanaian law, mineral resources are held by the State in trust for the people of Ghana, and the lease renewal process is managed through Government”.
Tarkwa, which comprises about a fifth of the 2.44 million gold equivalent ounces produced by the group in 2025, is due a renewal of its mining lease in April 2027.
Gold Fields said in June it was “well positioned” to continue operating the mine, but today it provided an indication of what it may have proposed to Ghana’s government, including deeper local participation, more procurement and skills support.
It added that unlike Damang, another mine in Ghana previously operated by Gold Fields, Tarkwa was technically complex and required substantial capital. It argued that Gold Fields had the operational experience to best mine the asset.
“Gold Fields believes it is best positioned to deliver the next phase of Tarkwa given its balance sheet strength and access to competitive financing required for significant long-term reinvestment,” it said.
It added, however, that concessions to Ghana had to “… be pursued in a manner that upholds the rule of law, sustains investor confidence, reinforces the position that Ghana is open for business.”
Gold Fields’s announcement today is a reminder of the political tightrope it is walking. President John Mahama’s administration is 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.
Bloomberg News reported last month that any transfer of Tarkwa would be evaluated against commitments on environmental rehabilitation, local employment and infrastructure development in surrounding communities.
The renewal of Tarkwa’s mining lease comes at a testing time for miners in Ghana which is due to push through the legislative changes to its mining laws in 20 years.
The Cabinet has approved draft legislation that caps lease renewals at 10 years, down from the current 30-year allowance, and trims the maximum term for new leases to 20 years from 30. Ghana’s Parliament is now due to consider the legislation.
