A new Ghanaian policy requiring all open-pit mining contracts to be awarded to wholly Ghanaian-owned companies by December 2026 is reshaping operations at one of the country’s largest gold mines. The move has prompted AngloGold Ashanti and Australian mining contractor Perenti Limited to agree on a A$95 million ($66.5 million) transition deal at the Iduapriem mine.
Introduced in January, the localisation policy requires mining companies operating in Ghana to award open-pit contracts exclusively to local firms. Contractors working on underground mines must be at least 50% Ghanaian-owned. According to Reuters, AngloGold Ashanti is among several major producers, including Newmont and Zijin Mining, that have been restructuring their operations to meet the new rules.
At Iduapriem, an open-pit mine near Tarkwa in Ghana’s Western Region, the changes bring a long-running partnership to a close. Perenti’s subsidiary, African Mining Services (AMS), has provided surface mining and support services through the AMAX joint venture with Ghanaian company MaxMass since 2018. AMS has worked at the mine since 2012, when it first began delivering surface mining services.
Under the new agreement, AMAX will continue operating the mine for about six months before handing control back to AngloGold Ashanti. The A$95 million contract covers surface mining and related support services during the transition period.
When the contract ends, AngloGold Ashanti will purchase most of AMS’s mining equipment at the site under a valuation formula agreed by both companies. Perenti expects the sale to generate between A$30 million and A$40 million, or roughly $21 million to $28 million.
AngloGold Ashanti has yet to announce who will take over mining operations after Perenti and AMS exit. Industry observers believe MaxMass, the Ghanaian partner in the AMAX joint venture, could become the sole contractor, but no decision has been confirmed.
Iduapriem is one of AngloGold Ashanti’s key African assets, with more than 2.1 million ounces of proven and probable gold reserves. As Africa’s leading gold producer, Ghana introduced the localisation policy to ensure more value from its mining industry stays within the local economy and supports the growth of domestic mining service companies.
Perenti Managing Director and Chief Executive Officer Vanessa Torres said the agreement allows the company to redirect capital into new opportunities.
“The agreed sale of equipment at the end of the contract provides certainty and the opportunity to recycle capital within Perenti. The expected proceeds will be allocated towards several value-accretive opportunities currently under consideration,” Torres said.
Perenti Contract Mining President Gabrielle Iwanow said the company remained committed to maintaining its standards until the transition is complete.
“The AMS team is justifiably proud of the performance delivered at Iduapriem over the last eight years and remains committed to delivering the same professional services until the handover of operations,” Iwanow said.
Companies that fail to comply with Ghana’s localisation requirements risk penalties, including the possible suspension of operations. That is expected to accelerate similar changes at other foreign-operated mining sites across the country in the months ahead.
By: Andrews Kwesi Yeboah