Ghana: Ghana is contemplating transferring control of the Tarkwa mine, operated by Gold Fields Ltd, to local firms when its leases expire next April. This move is part of a wider strategy to increase national control over its gold industry and benefit more from the rising bullion prices. The news led to a significant drop in Gold Fields' shares.

According to Ghana Web, the Ghanaian miners will need to submit bids for evaluation should the government proceed with this plan. Individuals familiar with the matter, who wished to remain anonymous due to the preliminary nature of the discussions, revealed that authorities are also considering the possibility of extending the leases for Gold Fields.

Ghana, recognized as Africa's leading gold producer, is striving to boost its share of mining revenue. The country has increased royalties on bullion from 5% to up to 12% and has limited bids for a former Gold Fields mine to local companies. The potential loss of the Tarkwa mine, Gold Fields' largest asset, would be significant for the South Africa-based company, as it contributed to one-fifth of its total output last year.

In Johannesburg, Gold Fields' shares saw a steep plunge of up to 8% by 10:44 a.m., marking the biggest intra-day drop in over three months. While a spokesperson for the Ministry of Lands and Natural Resources declined to comment, Gold Fields disclosed that they have already submitted an early application for the renewal of the Tarkwa mining leases. The company noted that "constructive engagements are continuing" regarding the government's proposed move.

The administration, led by President John Dramani Mahama, is under pressure to respond to South African firms following a surge of xenophobic protests in Africa's largest economy. Over 2,700 individuals from Ghana, Nigeria, Mozambique, and Malawi have been assisted in returning home from South Africa due to concerns about escalating anti-immigrant demonstrations.

In analyzing the bids, the government will seek commitments on environmental rehabilitation, local employment, and infrastructure development in host communities. The transfer of ownership of the Tarkwa mine is expected to generate more job opportunities for Ghanaian engineers, suppliers, and entrepreneurs.