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Mining industry

IEA Urges Government to Restrict Mining Leases in Favor of Local Ownership

Strategic Insights

— 1 min read

The Institute of Economic Affairs (IEA) is pushing the Ghanaian government to take control of the country's mineral resources by restricting foreign ownership of mining leases. According to the IEA, a clear policy must be adopted to prohibit granting new leases or extending existing ones to foreign entities. The IEA argues that Ghana has the technical and managerial expertise to manage its mineral resources in the national interest. To facilitate a smooth transition, the IEA recommends that a comprehensive framework be developed to rapidly and sustainably move the mining sector towards full Ghanaian ownership.

Key Takeaways:

  • The Institute of Economic Affairs (IEA) has urged the government to restrict future mining leases to promote local ownership of Ghana's mineral resources.
  • A clear national policy must be adopted to prohibit the granting of new mining leases or the extension of existing ones to foreign entities.
  • Ghana possesses substantial technical and managerial expertise in the mining sector, which should be harnessed to manage the country's mineral resources in the national interest.
  • Foreign expertise should be engaged only through time-bound service contracts.
  • A comprehensive transition framework should be developed to rapidly and sustainably move the mining sector towards full Ghanaian ownership.
  • The ownership of mining operations and all associated revenue should remain with the state or Ghanaian entities.
  • The IEA recommends that the government review the Minerals and Mining Act, 2006 (Act 703) and the Petroleum (Exploration and Production) Act, 2016 (Act 919) to ensure full local ownership and the accrual of benefits to the country.
  • The government should issue formal notices well in advance to all foreign mining companies whose leases are nearing expiration.
  • Dr. Eric Oduro Osae, Chairman of the IEA, emphasized the need for timely transition planning to avoid lease extensions.

Statistics:

  • No specific statistics provided in the source material.
  • Ghana has substantial technical and managerial expertise in the mining sector.
  • 2006: The year the Minerals and Mining Act was enacted.
  • 2016: The year the Petroleum (Exploration and Production) Act was enacted.

Sources:

  • Ghana Web, "IEA: Restrict mining leases to promote local ownership" (no date mentioned)
  • Institute of Economic Affairs (IEA)

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