Dr. Kwabena Donkor, a former Minister for Power and ex-chair of Parliament’s Mines Committee, has put forward a new plan for Ghana’s mining sector. He suggests the state should own the country's rich mineral assets. Local Ghanaian companies would then be hired to actually dig for and process the minerals. This proposal aims to ensure Ghana keeps more money from its valuable resources.
Donkor believes Ghana is ready for this change. The country now has enough skilled engineers, geologists, and managers. Local businesses also have the experience and equipment needed. He argues that Ghana is currently missing out on significant profits. These profits are sent overseas due to foreign ownership of mines. The former minister highlighted that many large mining firms already use similar models.
Ghana's economy relies heavily on its minerals, especially gold. In 2023, the mining sector contributed significantly to the country's export earnings. However, until now, much of the profit from these operations has flowed out of the country as dividends to foreign shareholders. This proposal comes at a time when Ghana is seeking ways to boost domestic revenue and reduce its reliance on external debt. Previous attempts at state-run mining have often faced challenges with efficiency and profitability.
“I strongly recommend that the State Gold Mining Corporation be revived, but in a limited capacity as an asset owner rather than an operator,” Dr. Donkor stated in a recent interview. He clarified this is not a call for nationalisation, which he warns could harm the economy. Instead, it focuses on ownership and value retention. He pointed to the Tarkwa Mine, whose lease expires soon, as an example of a potential shift without nationalisation. Dr. Donkor sees this as exercising the state's duty to manage national resources.
This new model could significantly impact Ghana's fiscal situation. By retaining more revenue, the government could fund essential public services like education and healthcare. Local mining firms would gain substantial contracts, boosting local employment and business growth. The success of this proposal will depend on careful planning and execution, ensuring operational efficiency is maintained and that local contractors are capable of meeting the demands of large-scale mining projects. Financing for these local operations could come from banks and other financial institutions, with support from the state. Investors will be watching closely to see how this proposal evolves.