Gold Fields must win chiefs’ buy-in to secure Tarkwa lease renewal – Bansah

Gold Fields Ghana Limited may need to secure the backing of traditional authorities in the Wassa Fiase Traditional Area if it is to successfully pursue the renewal of its Tarkwa mining lease, mining analyst Kenneth Bansah, PhD, PE, has argued.

Gold Fields’ Tarkwa mining lease is due for renewal next year after a 30-year term, but the process is already attracting growing public debate, with stakeholders divided over whether the company should retain the lease.

Bansah argues that the position of the traditional authorities in the Wassa Fiase Traditional Area has introduced a potentially significant challenge for Gold Fields.

The traditional area hosts several major mining operations, including Gold Fields Tarkwa, Damang Gold Mine, AngloGold Ashanti’s Iduapriem mine, Ghana Manganese Company and Heath Goldfields.

The chiefs have called for local ownership of mines, saying the country’s local content policy should go beyond local procurement and participation to include a more inclusive model involving direct partnerships between the state and host communities.

According to Bansah, the chiefs’ position is significant because they are key stakeholders in the mining area and their demand for shared ownership could make Gold Fields’ renewal efforts more difficult.

He argues that Gold Fields should therefore move quickly and strategically to engage the traditional authorities and secure their buy-in if the company intends to pursue renewal.

“If Gold Fields still pursues the renewal, then it must be quick and strategic in engaging the traditional authorities to secure their buy-in,” Bansah stated.

He cautioned that failure to build sufficient support among the traditional authorities could make it difficult for Gold Fields to secure the lease renewal and maintain a successful relationship with its host communities.

Government’s local ownership agenda

Bansah’s assessment comes against the backdrop of what he describes as a broader shift in Ghana’s mining policy towards local ownership and stronger local participation.

He points to the government’s increasing focus on local ownership, its push for more vigorous implementation of local content and what he describes as a move away from automatic renewal of mining leases.

In his view, these developments could suggest that the Tarkwa lease may face a different outcome when it comes up for renewal.

The chiefs’ position, he argues, could further reinforce that direction because their demand for local ownership and direct community participation aligns with the broader push for greater Ghanaian involvement in the ownership of mineral assets.

The Tarkwa lease debate has already attracted competing positions.

The Institute of Economic Affairs (IEA) has opposed renewal of the lease for Gold Fields, with former Chief Justice Sophia Akuffo publicly expressing the position.

The Ghana Chamber of Mines, however, has disagreed with the IEA and defended the case for renewing Gold Fields’ lease.

For Bansah, the latest intervention by the traditional authorities makes their engagement a critical factor for Gold Fields as the renewal debate intensifies.

The emerging contest over the Tarkwa lease is consequently not only about renewal, but also about who should own Ghana’s mines and how much value should remain with the state and communities hosting mining operations.