Updated
Updated · Business Insider Africa · Jun 20
Ghana May Shift 475,000-Ounce Tarkwa Mine to Local Firms as Gold Fields Lease Nears April Expiry
Updated
Updated · Business Insider Africa · Jun 20

Ghana May Shift 475,000-Ounce Tarkwa Mine to Local Firms as Gold Fields Lease Nears April Expiry

3 articles · Updated · Business Insider Africa · Jun 20

Summary

  • Tarkwa produced 475,000 ounces last year, and Ghana is weighing whether to hand the mine to local companies when Gold Fields' leases expire next April instead of renewing them.
  • Ghanaian bidders would be judged on environmental rehabilitation, local jobs and infrastructure commitments, reflecting Accra's push to keep more value from high gold prices at home.
  • Gold Fields said it has already filed an early renewal application and is still in talks, while CEO Michael Fraser has outlined a 20-year operating and investment plan for Tarkwa.
  • The stakes are high for the South Africa-based miner: Tarkwa delivered about a fifth of its 2.5 million ounces of output last year.
  • The review fits a broader policy shift in Africa's biggest gold producer, which has raised bullion royalties to as much as 12% from 5% and recently steered another former Gold Fields mine to a local owner.

Insights

After one major mine was given to a local firm, will Gold Fields' giant Tarkwa mine be the next domino to fall?
As its largest gold mine lease nears expiry, will Ghana's nationalist policy create local wealth or scare away foreign investors?