Ghana Mining Industry Warns Lease Uncertainty Could Undermine Investment and Production Stability

Ghana mining sector faces investor confidence risks over lease revocations and delayed renewals, industry warns

Ghana’s mining investment environment is facing growing risks from lease revocations, delayed renewals, and broader policy uncertainty, which could increase operational costs and weaken investor confidence, according to the head of the country’s mining industry association.

Kenneth Ashigbey, Chief Executive Officer of the Ghana Chamber of Mines, told Reuters that recent regulatory developments are raising concerns about the security of mining tenure in the country.

He pointed to the revocation of certain mining leases held by local operator Adamus Resources over alleged regulatory breaches, as well as ongoing uncertainty surrounding the lease renewal process for Gold Fields, as developments that could negatively affect Ghana’s investment reputation.

Ashigbey warned that such actions risk creating a perception that “security of tenure in Ghana is not guaranteed,” a factor he said is critical for long-term capital-intensive mining investment.

The lease for the Tarkwa mine, a key asset operated by Gold Fields and one of Ghana’s largest gold-producing operations with output of approximately 427,000 ounces in 2025, is set to expire in 2027. However, Ashigbey noted that discussions around renewal have stalled.

Ghana, Africa’s leading gold producer, has recently pursued policy reforms aimed at increasing state revenue from its mineral resources, reflecting a broader continental trend as commodity prices remain elevated.

Last year, authorities declined to renew the lease for Gold Fields’ Damang mine and instead awarded operational rights to local contractor Engineers & Planners (E&P), marking a notable shift toward local participation in the sector.

Separately, the Accra-based Institute for Economic Affairs has argued that the Tarkwa lease should not be renewed for Gold Fields and instead be allocated to domestic operators.

Ashigbey strongly rejected that position, saying it would undermine the principle of tenure security that underpins mining investment decisions.

“Their proposal will destroy the security of tenure that is essential to the development and sustainability of the mining industry,” he said at a press briefing, prior to speaking with Reuters.

Gold Fields did not immediately respond to requests for comment. A company executive, speaking anonymously due to the sensitivity of the matter, said there is growing concern over regulatory uncertainty following unsuccessful attempts to engage with authorities. The executive noted that Tarkwa is strategically important due to its high production volumes.

Ghana’s Ministry of Lands and Natural Resources and the Minerals Commission, the sector regulator, also did not immediately respond to requests for comment.