Ken Ashigbey rejoins Kofi Bentil’s Facebook post on Gold Fields
Kofi Bentil, my brother, I have responded to the issues you raised, but let me reiterate a few important points. We must be careful not to present selective information in a manner that creates a misleading impression. First, on the US$30,000 purportedly paid for the mining lease. Ghana has historically used standard mining lease agreements, and Gold Fields' lease was not materially different…
Kofi Bentil addressed the concerns raised by Ken Ashigbey in a response to his Facebook post. First, regarding the US$30,000 payment for the mining lease, Bentil clarified that it was not the total financial commitment. Ghanaian mining leases typically include various statutory payments such as application and processing fees, annual mineral rights fees, ground rent, and other charges.
These obligations should be considered separate from the contractual consideration. Bentil emphasized that Gold Fields paid approximately US$3 million in 1992/93 for geological and technical information, which was part of the broader financial investments and risks associated with the Tarkwa Mine project.
Second, Bentil acknowledged that substantial investments were made to develop the mine, benefiting both Gold Fields and Ghana. While these investments were undertaken in Gold Fields' commercial interest, they also created value for the country through taxes, royalties, the State's 10% free-carried interest, employment, and economic opportunities for host communities.
Bentil argued that any assessment of the economic value generated by mining must account for the capital invested, risks assumed, and benefits distributed among stakeholders. He stressed that this principle applies to all mining companies licensed by the Minerals Commission and not just Gold Fields.
Third, Bentil pointed out that the US$30 billion figure cited by Ashigbey was doubtful and not from an authentic source. Instead, he suggested examining the actual profits, capital invested, taxes, royalties, dividends, and other economic contributions over the past 30 years to provide a more meaningful and balanced assessment of Gold Fields' value derived from the mine.
Fourth, regarding reclamation, Bentil clarified that it is the responsibility of the mining company, subject to regulatory oversight. Responsible mining companies are required to make financial provisions for mine closure and rehabilitation, including reclamation bonds and other financial assurances. The Minerals Commission and Environmental Protection Authority are responsible for verifying the specific arrangements and compliance obligations applicable to Gold Fields.
The open pit being referred to is an open pit, similar to other open pit operations in Ghana and globally. Since 2016, Gold Fields has invested approximately US$46 million in progressive rehabilitation, with annual expenditures averaging US$4.2 million.
Written by urgent.news from MyJoyOnline Ghana's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
