Chairman for the committee on Public Administration and State Interests, Dr. Kwabena Donkor has questioned government over failure to express interest in the Akyem operations of Newmont Corporation up for sale.
The company had announced it was selling the Akyem mine to a Chinese firm, Zijin Mining Group under an agreement for cash consideration of up to $1 billion.
However, in an engagement with the press, the former Power Minister charged President Akufo-Addo to ensure the state obtains a stake in the mine which he argues is productive with over 20 years lifespan.
“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.
Mr. 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.”
Mr. Donkor who also represents the people of Pru East in Parliament called on local businesses to explore the possibility of acquiring stakes in the “very profitable mine”.
Newmont, a multi-billion dollar company said the sale of its Akyem mining operation “represents continued progress on the non-core asset divestiture program announced in February”.
The sale, if unimpeded, is expected to be completed by the end of the year.
Source: Ghana/Starrfm.com.gh/103.5FM/Mitchell Asare Amoamah
