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0 Resource and Industry Expert at Deloitte Africa, Gideon Ayi Owoo, has called on the government to establish clear and transparent policies governing the renewal of mining leases to ensure fairness for both existing operators and new investors.
Speaking on the JoyBusiness Roundtable, Mr Owoo stressed that if Ghana intends to drive industrialisation through the mining sector, it must make industrialisation a mandatory condition in mining agreements and lease renewals.
“If Ghana wants industrialisation, there must be a precondition in mining contracts,” he stated.
According to him, the government must clearly define the conditions under which mining leases would be renewed in order to reduce uncertainty within the sector.
“Government should come up with very clear guidelines and policies that say these are the conditions under which I’m going to renew,” he said.
Mr Owoo explained that mining companies should be made aware of government expectations well in advance, particularly where industrialisation targets and local value addition are concerned.
“If you want industrialisation, make it a precondition. Put it on paper. Mining companies should know the requirements well in advance,” he noted.
He argued that once the rules are clearly defined from the outset, companies that fail to meet the agreed conditions at the end of their lease periods should not expect renewals.
“If they are unable to meet the conditions at the end of the 30 years, nobody is going to argue. Everybody will be clear,” he added.
Mr Owoo also cautioned that new operators who take over mining concessions often inherit the more difficult and less profitable stages of mining operations.
“The difficult and low-margin parts are often what are left behind for the next operator to handle, and that creates challenges,” he explained.
He maintained that the national conversation should focus less on whether mines are foreign-owned or locally owned and more on developing policies that benefit Ghana regardless of ownership structure.
“I’m nationality agnostic. I’m not here for any foreign owner. We just need good policies in place so that whatever decision we take benefits both the old owner and the new owner,” he stressed.
Mr Owoo further advocated greater local participation in the mining industry through the stock market and domestic institutional investors.
“There are a lot of domestic institutional investors. Pension schemes have a lot of money now. Can they be included?” he questioned.
He also underscored the need to strengthen local content policies to ensure Ghanaians derive greater value from the country’s mineral resources.
