IEA opposes Newmont’s $1 Billion Akyem Gold Mine sale to China’s Zijin, urges local ownership
The Institute of Economic Affairs (IEA) has strongly opposed the proposed sale of Newmont’s Akyem Gold Mine to China’s Zijin Mining Group for $1 billion, stating that the deal is not in Ghana’s best interest. The IEA argues that the sale violates the terms of the mine’s lease agreement, which expires in January 2025, and requires government approval for any transfer of ownership—a step that has not been documented.
In a press release dated October 21, 2024, the IEA stressed that Ghanaian investors should be given priority in the sale, aligning with President Akufo-Addo’s call for mineral wealth to remain in local hands. The IEA pointed out flaws in the original contract, such as insufficient royalties and taxes, and urged Parliament to block the sale.
The IEA warned that approving the sale would repeat the mistakes of colonial-era contracts that benefited foreign interests while providing minimal returns to Ghana. Instead, the organization recommended pursuing a public-private partnership (PPP) to keep the mine under Ghanaian control, allowing for long-term economic gains.
“The IEA categorically states that Newmont’s proposed sale of the Akyem Gold Mine to Zijin is legally flawed and must not be ratified by Parliament,” the statement read. The IEA also suggested that the Constitution be amended to vest control of natural resources in the state, requiring parliamentary approval for major contracts.
The Institute concluded by urging Newmont to sell the mine to local investors, ensuring that the wealth generated stays within Ghana to support national development.
