Take charge of your minerals, IEA tells Ghana

The Institute of Economic Affairs (IEA) has advocated for a significant shift in Ghana’s approach to mineral contracts, urging the country to take full ownership of its resources in order to create jobs, build wealth, and enhance technical capacity for Ghanaians.

 In a statement issued on the reported sale of the Newmont Akyem Mine, the IEA referenced the United Nations Charter of Economic Rights and Duties of States, which encourages nations to maximize the benefits derived from their natural resources for development.

The IEA stressed that Ghana should not deviate from this objective but should instead fully exploit its mineral wealth to the nation’s advantage. It dismissed the common argument that the country lacks the necessary capital and expertise to manage its resources independently, arguing that relying on foreign investors and compensating them accordingly is no longer a valid excuse.

The institute pointed out that other countries facing similar challenges have successfully negotiated more favourable terms for their natural resource exploitation, and Ghana could follow suit by pursuing more advantageous production-sharing or service contracts.

Furthermore, the IEA called for the empowerment of the Geological Survey Department, emphasizing the need for the department to map out mineral deposits that could be used as collateral to raise capital and hire the necessary expertise.

The institute also emphasized the importance of training local mining engineers to ensure that Ghana has the skilled workforce to manage its natural resources in an environmentally sustainable manner.