ACEP slams government over decision not to renew Abosso Goldfields’ mining lease

The Africa Centre for Energy Policy (ACEP) has criticised the government’s decision not to renew the mining lease of Abosso Goldfields Limited (AGL), describing it as premature and potentially costly to the state.

In a press statement issued on Thursday (17 April 2025), ACEP questioned the rigour and objectivity behind the government’s action, warning that such decisions could undermine investor confidence and dent the country’s mining sector.

ACEP maintained that while it acknowledges the state’s sovereign right to regulate natural resources, decisions of this magnitude must be made within the confines of due process and industry best practice.

“Examining the law and the information before us, we note that the state’s decision to take over the mine after April 18, 2025, is premature,” ACEP stated. “Particularly given that the basis for the lease rejection is itself contested.”

The think tank referenced Section 27 of the Minerals and Mining Act, 2006 (Act 703), emphasising the law’s provision for amicable dispute resolution between a mineral right holder and the Republic.

“All efforts shall be made through mutual discussion and, if agreed, through alternative dispute resolution procedures to reach an amicable settlement,” ACEP quoted from Subsection 1 of the Act.

The statement further revealed that the company, Abosso Goldfields Limited, had formally notified the government of its intention to seek redress through arbitration—a legal step that allows the mine to continue operations until the dispute is resolved, as stipulated in Section 27(5) of the same Act.

ACEP described the reasons cited by the Minister for Lands and Natural Resources, particularly the company’s alleged cessation of active mining, as flawed.

“Stockpiles are materials already mined and stored for further processing. The production of 135,000 ounces of gold from these stockpiles in 2024 underscores their value and relevance to the mine’s output,” the statement explained.

On the claim that AGL failed to declare mineral reserves, ACEP pointed out that there is no legal requirement mandating exploration every two years within a 30-year lease period. It further noted that AGL had submitted technical reports indicating minable resources with an eight-year production outlook.

“If the basis of the termination is on account of no reserves and the state assumes this is true, then it is confusing why is the state so eager to assume this risk,” the policy group questioned.

ACEP also warned of Ghana’s history with costly policy reversals and controversial resource deals, listing examples such as the attempted novation of the Ameri Power contract, the Agyapa transaction, and the GNPC’s failed acquisition of offshore blocks for $1.65 billion.

The Centre has called on government to reopen lines of communication with the company to seek an amicable and legally grounded resolution.

“Ghana has been bruised too often by hasty decisions, and we must remain vigilant when such risks become apparent,” ACEP added.

Read the statement in full below:

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