Ghana’s Mining Scandal: Leaked Documents Expose Questionable Gold Lease Approval
Ghana’s Minerals Commission is facing mounting scrutiny after leaked documents revealed that a politically connected company, Mech Resources Limited, was awarded a 9000-acre gold mining lease under highly questionable circumstances. The revelations, first brought to light by Bright Simons, Vice-President of IMANI Ghana, suggest that the commission fast-tracked approvals, ignored financial and technical requirements, and overlooked key environmental concerns in awarding the lease.
A Mining Lease Without Scrutiny
According to the leaked recommendation letter dated October 10, 2022, the Minerals Commission approved the gold mining lease for Mech Resources Limited just six weeks after receiving its application on July 26, 2022. The company was granted a 13-year lease for gold mining in Asankranguaa, Wassa Amenfi West, Western Region, despite lacking any prior experience in the sector.
In a detailed exposé on social media, Bright Simons raised concerns about the company’s financial capability and technical expertise to manage such a large-scale mining operation. He revealed that the company, reportedly linked to the children of a former Chief of Staff, failed to demonstrate the basic qualifications required for mining operations.
Glaring Discrepancies in Financials and Environmental Compliance
A subsequent review of the company’s feasibility study uncovered serious financial miscalculations and contradictions, including:
- Capital expenditure errors – A misstatement of generator costs, where four generators valued at $20,000 each were recorded as costing $800,000 instead of $80,000.
- No evidence of financial capacity – The company did not provide a breakdown of its proposed $25.8 million upfront investment.
- Inconsistent revenue projections – The feasibility study estimated total project revenue at $807.71 million, but a separate section erroneously listed it as $54.40 million.
- Unrealistic payback period – The report stated that the investment payback period was 17 years, but cash flow analysis showed that the initial $25 million would be recovered within just 2 years.
- Lack of environmental due diligence – The Water Resources Commission was not consulted, and the impact on surrounding water bodies was not assessed.
- Flawed cash flow projections – The feasibility study failed to include a ‘Year 0’ investment column, creating misleading profit estimations.
Despite these significant irregularities, the Minerals Commission’s leadership overrode concerns raised by its own officers and recommended approval of the lease.
A Pattern of Preferential Treatment?
Simons further alleged that Mech Resources Limited is just one of several politically connected entities that have been granted gold mining leases under questionable circumstances. According to his sources, the same politically affiliated group has applied for 23 mining leases, with at least four already approved under similar opaque conditions.
“This is a blatant case of regulatory capture,” Simons wrote. “The Minerals Commission leadership was enabling politically connected individuals to violate sound mining standards, handing out leases like toffees.”
Calls for Investigation and Accountability
In light of the revelations, there have been increasing calls for an independent parliamentary inquiry into the Minerals Commission’s leasing processes. Civil society organizations, environmental groups, and business analysts have urged the government to suspend the lease and review all recent approvals to prevent further loss of state resources.
Opposition lawmakers and transparency advocates have also demanded that Ghana’s anti-corruption agencies, including the Special Prosecutor’s Office, launch a formal investigation into how the lease was approved.
With gold contributing over 40% of Ghana’s total export revenue, governance failures in the mining sector pose a significant risk to the country’s economic stability. Analysts warn that such preferential treatment and regulatory lapses could undermine investor confidence and fuel corruption in the natural resource sector.
What’s Next?
As the Minerals Commission and the Ministry of Lands and Natural Resources remain silent on the issue, all eyes are on Ghana’s government to determine whether it will act decisively to address the allegations or attempt to shield those involved.
“This is a test case for Ghana’s commitment to good governance,” said one industry expert. “If this is swept under the rug, it will send a clear message that politically connected individuals can exploit national resources with impunity.”
For now, Bright Simons has pledged to release more documents and analysis to support his claims. He has called on whistleblowers within the sector to continue exposing corruption, warning that “without accountability, Ghana will be sleepwalking into a resource governance disaster.”
This is a developing story…
Please let us keep up the good fight to protect our ecological environment and our natural resources from these predators. We are duty bound to do this for future generations, for Ghana, for each other and for all of us.
The mining and forestry sector are run by very skilled mafias.
Until all heads of those institutions are removed or reassigned, we are not going to see any improvement.
The top public servants should all be transferred to new positions
Am surprised when I hear that gold mining license has been granted with in six weeks how could it be eii meanwhile people who are applying for just sand and gravel license for over two to three years could not get why