Chairman of the Committee on Public Administration and State Interests, Dr. Kwabena Donkor, has criticized the government for not showing interest in the sale of Newmont Corporation’s Akyem operations.
Newmont had announced its intention to sell the Akyem mine to the Chinese firm, Zijin Mining Group, in a deal worth up to $1 billion in cash.
During a press briefing, the former Power Minister called on President Akufo-Addo to secure a stake in the mine for the state, emphasizing its long-term productivity with a lifespan exceeding 20 years.
“This is a very healthy mine with good cash flows. Newmont is disposing of because they are taking a global policy to dispose of all their gold mines except their Tier 1 gold mine,” he explained.
Dr. Donkor who tied the proposed purchase to the president’s ‘Ghana beyond aid’ aspiration said such an acquisition will make the country better off. He said it was not too late for government to hijack the sale.
“So this was an excellent opportunity for Ghanaian and Ghanaian companies to take a major stake in this mine, if not a 100% stake, a major stake,” he stated. “Unfortunately this has not happened, and I want to call on the government to take a second look. It is not too late in the day because Newmont is already enjoying privileges that other mines do not enjoy.”
Dr. Kwabena Donkor, who represents the people of Pru East in Parliament, urged local businesses to consider acquiring stakes in the “very profitable mine.”
Newmont, a multi-billion-dollar company, stated that the sale of its Akyem mining operation “represents continued progress on the non-core asset divestiture program announced in February.”
If all goes as planned, the sale is expected to be finalized by the end of the year.