The Institute of Economic Affairs (IEA) has expressed dismay about the sale of Newmont's Akyem Gold Mine Project in Ghana to China's Zijin Mining Group for $1.0 billion, describing the deal as flawed in several respects, inimical to Ghana's interest and unacceptable. According to the institute, Ghana needs a complete paradigm shift in its mineral contracts by taking ownership of the minerals to create job opportunities, wealth, and technical capacity development for Ghanaians. "The IEA notes that the project lease was signed between the Ghana Government and Newmont on 19th January 2010 and has an expiry period of 15 years, that is valid until 19th January 2025.
According to the terms, the lease is transferable within the duration period, subject to mutual agreement between the Government and Newmont.
The lease is also subject to extension after its expiry date by mutual agreement.
The lease has not yet expired and therefore, any decision by Newmont to sell the mine must be on a transfer basis and must be for the unexpired term only and subject to Government agreement", it said in a statement. "At the end of the expiry period, Newmont is obliged to hand over the mine back to Government, the truthful owner of the gold under the assigned land.