Safeguarding Ghana’s Mineral Wealth: Jacob Osei Yeboah Warns Against Economic Dispossession and Calls for Reform in Mining Concessions

Amid ongoing national efforts to combat illegal small-scale mining (galamsey) and reform the country’s natural resource sector, critical concerns have been raised regarding the governance, revocation, and reassignment of mining concessions. Jacob Osei Yeboah, political leader of The Base Movement LBG, 2012 and 2016 independent presidential candidate, and seasoned mining business adviser, has issued a compelling national policy warning to President John Dramani Mahama.

In an extensive official communication originating from the Office of JOY2012 in Accra, Yeboah emphasizes that while the State’s fight to protect water bodies and environment must continue, regulatory actions must not inadvertently trigger the economic dispossession of Ghanaian investors or undermine long-term national stability.

Lessons from Galamsey and the Core of the Crisis

Drawing from his extensive career in the mining sector-which includes serving as an electrical engineer and board member of AngloGold Ashanti, Obuasi, between 1996 and 2002-Yeboah notes that he previously cautioned the country in 2009 about the dangers of failing to manage the galamsey crisis responsibly. While acknowledging the devastating environmental degradation caused by illegal mining, Yeboah argues that current challenges extend into the formal administrative handling of licensed concessions.

The core issue, according to the release, centers on recent developments involving the revocation and subsequent reassignment of mining concessions held by local companies. Pointing to high-profile cases such as Narawa Mining Company Limited at Osiem and Nsutam, and Northern Ashanti Mines Limited at Konongo, Yeboah highlights emerging disputes over outstanding statutory fees, alleged forceful takeovers, pending court proceedings, and substantial investments reportedly made by local holders.

For instance, cases involving Northern Ashanti Mines saw disputes over statutory fees exceeding US$8 million and liabilities around US$2.4 million, contrasted against claims of major capital investments. Yeboah stresses that these disputes raise vital questions regarding the consistency of administrative decisions and investor confidence in Ghana’s mining sector stability.

A Call to Prevent Concessions from Becoming “Political Spoils”

One of the central warnings issued in the document is the danger of treating mineral concessions as political rewards. Yeboah cautions that Ghana must avoid any precedent where political transitions or administrative discretion lead to a cycle where one group of beneficiaries replaces another.

“We must not create a mining industry in which the security of investments depends on who occupies Jubilee House,” Yeboah warns, emphasizing that national mineral wealth belongs collectively to the people of Ghana under Article 257(6) of the 1992 Constitution.

To rectify these vulnerabilities, the proposal outlines a comprehensive framework for fair and transparent handling of revoked concessions:

• Fair Compensation: Establishing a minimum compensation benchmark of US$1 million (subject to independent valuation) for verified, legitimate investments, covering exploration, geological reports, infrastructure, and community commitments.

• Independent Liabilities Quantification: Ensuring that environmental degradation and liabilities are independently quantified and attributed so that successor investors or public resources do not inherit past misconduct.

• Equity Participation: Proposing that previous Ghanaian holders be entitled to a minimum 5% equity interest in successor ventures under specific legal and commercial circumstances to recognize early exploratory groundwork.

• Opportunities to Remedy Defaults: Providing companies facing financial rather than fraudulent difficulties a structured opportunity to remedy defaults via refinancing or payment plans before concessions are outright reassigned.

Recommendations for Presidential and Legislative Action

To restore absolute transparency, protect state regulatory authority, and secure investor confidence, Yeboah has urged the Presidency to consider several urgent actions:

1. Comprehensive Reporting: Direct the Ministry of Lands and Natural Resources and the Minerals Commission to compile a complete report on concessions revoked and reassigned in recent years.

2. Independent Reviews: Commission independent assessments of complex contested matters—such as the Narawa and Northern Ashanti cases—without prejudicing ongoing court actions.

3. Expert Committees: Form an expert panel encompassing mining engineers, geologists, legal practitioners, and environmental accountants to evaluate compensation and environmental liabilities.

4. Legislative Reform: Review sections 68 and 69 of the Minerals and Mining Act, 2006 (Act 703) to address legislative gaps and protect local-content service providers from unreasonable administrative payment demands that squeeze out indigenous profits.

Ultimately, Yeboah’s appeal is framed as an act of patriotic responsibility. As Ghana navigates the delicate balance between environmental preservation, strict statutory enforcement, and economic growth, the policy document serves as a blueprint for ensuring that the nation’s natural resources continue to benefit both current and future generations.

Source: Thepressradio.com