Ghana should focus on maximising mining revenues, not nationalisation – UMaT lecturer

A lecturer at the University of Mines and Technology (UMaT), Dr Frank Boateng, has urged Ghana to prioritise maximising returns from its mineral resources through effective partnerships and revenue-sharing arrangements rather than pursuing the nationalisation of the mining sector.

Speaking during a high-level discussion on “To Nationalise or Transform? Rethinking Ghana’s Approach to Mining, Oil and Critical Minerals” in Accra on Tuesday, May 26, organised by Joy Business, Dr Boateng argued that the country’s immediate focus should be on how to derive greater value from the rents and royalties generated by mining activities.

“What we need to do now is be able to benefit more from our rent. And also make sure that, because of the kind of capital you need to mine, if we are in a hurry to give the mining companies to individuals to run, it will be difficult to mine,” he said.

According to him, Ghana has previously experimented with state ownership and control of mining operations, but those efforts were largely unsuccessful due to the enormous capital requirements associated with the industry.

He noted that the sector was eventually returned to private operators, many of whom are not foreign entities, after the State struggled to sustain the significant investments needed to run large-scale mining operations.

“When the government took over (the mining sector) prior to the liberalisation in the early 80s, we all saw that we were not able to manage these mines, and that brought about the privatisation, where we brought in private investment,” he added.

“It takes so much to build a gold mine,” he added.

Dr Boateng maintained that the financial demands of establishing and operating mines remain beyond the reach of most local investors, making it difficult for Ghanaians to take over existing mining assets or develop new ones without substantial external support.

Rather than pursuing outright nationalisation, he advocated a stronger public-private partnership model that would enable the country to benefit from private capital, technical expertise and operational efficiency while ensuring that the State receives a fair share of the wealth generated from its natural resources.

Dr Boateng argued that a collaborative approach between government and private investors offers a more practical and sustainable pathway for growing the mining industry and maximising economic benefits for the country.

His comments come amid growing public debate over the future of Ghana’s extractive sector, as stakeholders weigh calls for greater national control of natural resources against the realities of financing and managing large-scale mining operations.

المصدر: MyJoyOnline (GH)