Finance Minister Dr Cassiel Ato Forson has signalled a tougher government approach to mining lease renewals, warning that companies may no longer be allowed to secure lease extensions only to dispose of the assets shortly afterwards.
Speaking in an interview with Bloomberg, Dr Forson said recent developments in the mining sector have raised concerns about whether some lease renewals are being used to support continued mining operations or merely to facilitate lucrative asset sales.
Referring to a recent transaction involving Newmont, the Finance Minister disclosed that a mining lease was renewed and reportedly sold within a month for approximately $1 billion.
While acknowledging that the state benefited from the applicable capital gains tax, he questioned whether such transactions reflect the original purpose of granting lease extensions.
“We renewed it; the following month, they sold it for a billion dollars and only paid capital gains after the state,” he said.
According to Dr Forson, the government expects companies that apply for lease renewals to remain committed to operating and investing in Ghana’s mining sector rather than treating renewed concessions as assets for immediate resale.
“You can’t just renew your lease and sell it the following month. The intention out there was for us to renew the lease for them to continue in business,” he added.
Tarkwa Mine Lease Under Review
The Finance Minister’s comments come amid ongoing discussions about the future of the Tarkwa Mine, one of Ghana’s most valuable mining assets, as its current lease arrangement approaches expiration.
The mine, which was originally owned by the state, was leased to a foreign operator under a 30-year agreement and is expected to revert to government control when the lease expires.
Dr Forson revealed that government is currently considering whether the concession should return to the State Mining Company or whether the existing operator should be granted an extension.
“There is a conversation around whether we revert it back to the State Mining Company or allow the company to extend the lease,” he noted.
He indicated that a final decision on the matter is expected before the end of the year.
“As I said, we have up to April next year, almost one year. And our intention is to have that conversation to the end of the year. And so before 2026, we’ll have some agreement,” he said.
Government Defends Mining Reforms
Dr Forson also defended recent reforms introduced in the mining sector, including the adoption of a sliding-scale royalty system designed to increase state revenues during periods of high gold prices.
According to him, the policy enables Ghana to capture a greater share of the economic benefits generated by rising commodity prices.
“We introduced the sliding scale to be able to capture the economic rent,” he explained.
The Finance Minister said the reforms were developed through consultations with industry stakeholders and form part of broader efforts to ensure Ghana derives greater long-term value from its mineral resources while maintaining a competitive and attractive investment climate.
He stressed that government remains committed to balancing investor confidence with the need to maximise returns from the country’s natural resources for the benefit of citizens.
