Ghana is contemplating transferring management of Gold Fields’s Tarkwa mine to native companies when its leases expire subsequent April, a part of a push to extend management of its gold business and seize extra of the proceeds from excessive bullion costs.
The Ghanaian miners might want to submit bids for analysis if the federal government goes forward with the plan, folks with data of the matter mentioned, asking to not be recognized because the discussions are preliminary. The authorities are additionally weighing the choice of extending the leases for Gold Fields, they mentioned.
Ghana, Africa’s greatest gold producer, has moved to extend its share of mining income, elevating royalties on bullion to as a lot as 12% from 5% and proscribing bids for a former Gold Fields mine to native corporations. The lack of its greatest asset will probably be a blow for the South Africa-based Gold Fields because it accounted for a fifth of the corporate’s complete output final yr.
A spokesperson for the Ministry of Lands and Pure Assets declined to remark.
Gold Fields has “submitted an early software for the renewal of the Tarkwa mining leases. These constructive engagements are persevering with,” the corporate mentioned when requested for touch upon the federal government’s proposed transfer.
President John Mahama’s administration is dealing with strain to behave towards South African companies following a wave of xenophobic protests in Africa’s greatest financial system. Greater than 2 700 folks from Ghana, Nigeria, Mozambique and Malawi have been assisted to return dwelling from South Africa amid fears that anti-immigrant demonstrations may escalate.
The administration will search for commitments round environmental rehabilitation, native employment and infrastructure growth in host communities when analysing the bids, the folks mentioned. Transferring the possession of the Tarkwa mine will assist create extra job alternatives for Ghanaian engineers, suppliers, and entrepreneurs, they mentioned.
The mine produced 475 000 ounces of the steel final yr. The corporate is engaged on a 20-year operations and funding plan for Tarkwa, Chief Govt Officer Michael Fraser mentioned on ChannelOne TV final month.
Earlier this yr, Gold Fields transferred its different Ghanaian operation — the mature Damang mine — to the state when its lease expired. The federal government held a young to pick out a brand new proprietor for the asset, which was gained by Engineers and Planners Co, a agency that belongs to Mahama’s brother and held mining contracts at each Tarkwa and Damang.
Gold Fields, which operates mines throughout Africa, Australia and South America, produced about 2.5 million ounces of gold final yr.
