The Ghana Chamber of Mines has cautioned government against nationalising mineral resources, arguing that history shows such moves led to production collapse and economic devastation. Chamber President Michael Edem Akafia, speaking during an interaction with fellows of the Africa Extractives Media Fellowship (AEMF), said Ghana’s experience in the 1970s when the state seized control of mining companies should serve as a warning as government renews efforts to maximise national benefits from mineral wealth.
The caution comes amid growing debate over resource nationalism, following the Institute of Economic Affairs’ (IEA) call for full state ownership of mineral resources and government’s decision in April 2025 to deny Gold Fields Ghana Limited a lease extension for its Damang mine. The Minerals Commission acting Chief Executive Officer Isaac Andrews Tandoh has insisted Ghana is not nationalising its mining sector but rather pushing for indigenisation and fairer terms.
Akafia, who also serves as Vice President of Gold Fields’ West Africa Region, argued that while the goals of government and mining companies are broadly aligned, the approach to achieving them matters more than ever. He said at this point in the mining industry’s history, environmental, social and governance (ESG) commitments align with the government’s quest and Ghana’s quest to maximise the benefits of mining, adding that the only thing is for stakeholders to be aligned in terms of approach.
Production Collapsed to 200,000 Ounces Annually
Akafia recalled that in the 1970s, the state moved to seize what it described as the commanding heights of the mining sector, nationalising mining companies and assuming control through equity stakes. The outcome, he said, was devastating, with production collapsing to about 200,000 ounces of gold a year by the 1980s, a figure that today is produced by a single mine, Gold Fields’ Damang operation.
The reason for this slump, he explained, was not geology, but economics. Mining is capital intensive, technologically demanding and operationally complex. When the state took over operations without fully appreciating the scale of continuous investment required, it struggled to sustain production. He said the state took it over without appreciating how to invest, so it could not sustain it.
Mining requires long term capital, risk appetite and technical expertise, which often takes decades before returns are realised. Governments, constrained by competing priorities such as health, education and infrastructure, may find it difficult to consistently commit the billions of dollars required to keep mines productive, safe and competitive. The Chamber argues that renewed attempts to focus on equity acquisition or nationalisation risk repeating old errors, particularly at a time when global capital is mobile and highly sensitive to policy uncertainty.
Focus Should Be on Value Chain Development
Rather than revisiting ownership battles, the Chamber believes Ghana’s most potent opportunity lies in unlocking value across the mining value chain. This includes local procurement, refining, logistics, skills development, downstream processing and community based economic activities that multiply mining’s impact beyond the pit. Under growing ESG commitments, mining companies are already being pushed to deepen local participation, reduce environmental harm and improve social outcomes. According to the Chamber, these obligations align naturally with Ghana’s development goals, without the risks associated with state takeovers.
Akafia said the industry has tried nationalisation before and it did not work, adding that what the Chamber believes is an actual potent solution is to unlock the value along the value chain. The caution comes at a sensitive time. Ghana remains Africa’s leading gold producer, and mining continues to be a critical source of foreign exchange, jobs and fiscal revenue. The mining sector contributed approximately GH¢17.7 billion in fiscal revenues in 2024, representing a 51.2 percent increase over the previous year and accounting for 24.3 percent of direct domestic taxes.
The industry fears that any policy signal that unsettles investor confidence could have immediate consequences for production, employment and government revenue. The government is currently reviewing the Minerals and Mining Act, with a draft bill expected before Parliament by March 2026 that seeks to introduce a nine to 12 percent sliding scale royalty regime and reduce the tenure of mining leases from 30 years to 15 years.
