Minerals Commission Deputy CEO Isaac Andrews Tandoh has defended government’s decision to assume operational control of the Damang gold mine from South African mining giant Gold Fields.
He says the company failed to deliver value after decades of support and generous tax waivers.
In an interview on Joy News’ PM Express Business Edition, Mr Andrews Tandoh said, “We gave them a development agreement.
“That agreement gave them waivers on taxes. Tariffs were taken off, especially on fuel. At a time when Ghanaians were paying high fuel prices, these mines were enjoying exemptions.”
He said Gold Fields was expected to reinvest profits to develop the Damang mine. Instead, he claims, the company spent its earnings acquiring foreign assets.
“Instead of using the profit to develop the Damang mine, they were rather busy buying mines elsewhere—like Osisko in Canada and another mine in Chile,” he stated.
“And they can’t tell me it’s not Ghana money. Because it’s difficult to move your money out of Australia. Ghana is one of the few places where they can move it freely.”
The Minerals Commission boss did not mince words.
“After 30 years, after being given a development agreement, you chose to treat stockpiles in the last two years. It’s just taking free cash from Ghana without actually working. And this cannot continue.”
He said the decision not to renew the lease was not part of a broad clampdown on foreign firms.
“We’re not saying we are going to change all mining companies away. We are going to support them to do their work,” Andrews Tandoh clarified.
“But we will take it case by case. Ghanaians deserve better.”
On the issue of capital, Tandoh dismissed claims that Ghanaian firms lack capacity to run large-scale mines.
“Unlike those days when people couldn’t access funding, it’s a thing of the past. Now we have local companies getting there. BCM had Caterpillar financing.
“Engineers and Planners signed a $250 million deal with Caterpillar. Rockshore is buying equipment worth hundreds of millions of dollars.”
He expressed frustration that while local firms are stepping up, major international players continue to extract profit with limited reinvestment.
“Last year, Tarkwa and Damang mines made over $600 million in profit. How much stayed in the country? Your guess is as good as mine.”
Declaring that the Minerals Commission is determined to ensure Ghanaians benefit more from the mining sector, Andrews Tandoh said, “We can’t continue on that target. It’s time to act.”
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
