Tarkwa Mine: Why a state takeover is the wrong answer

The proposal by governance and international relations expert Dr David Agbee that the Government of Ghana should assume majority ownership of the Tarkwa Gold Mine after Gold Fields’ lease expires in 2027 has understandably generated considerable public interest. At first glance, it sounds bold, patriotic and refreshingly decisive. After all, who would not want Ghana to derive more value from its gold?

But as attractive as the proposal may appear, especially to those frustrated by the slow pace of development in mining communities, a state takeover is unlikely to deliver the outcomes many expect. In fact, it risks distracting us from the real issues that have undermined development in mining communities for decades. The frustrations are understandable.

Many communities around Tarkwa still grapple with poor roads, environmental challenges, inadequate social infrastructure and youth unemployment despite decades of gold production. The question, however, is whether changing the ownership of the mine will automatically solve these problems. Tarkwa Mine is not a small galamsey pit with a few excavators and optimistic young men.

It is one of Africa’s largest and most sophisticated gold mining operations, built through decades of investment, engineering expertise and complex operational systems. It includes processing plants, mining fleets, power infrastructure, water systems, tailings facilities and specialised technology. Acquiring majority ownership of such an operation would require billions of dollars.

The proposal suggests using the Heritage Fund, the Stabilisation Fund, sovereign bonds and concessional financing. That should give every taxpayer pause. The Heritage Fund exists to preserve wealth for future generations, not to become an investment wallet for buying commercial assets.

If we spend the children’s inheritance buying a mine, the children may one day ask why we bought the mine instead of leaving them the inheritance. Even if Ghana could raise the money, ownership alone does not guarantee success. Running a world-class mine requires technical expertise, disciplined management, efficient procurement and commercial decision-making insulated from political pressure.