The government has assumed operational control of the Damang Mine, a concession held by Abosso Goldfields Limited, a subsidiary of Gold Fields Limited.
The move follows the rejection of the application by Gold Fields Limited to have its 30-year mining lease at the facility extended for another 30 years.
Abosso Gold Fields Limited’s 30-year lease is set to expire tomorrow, April 18, 2025.
The government’s action, according to a statement by the Ministry of Lands and Natural Resources, represented a crucial step in Ghana’s economic reset, ensuring that gold reserves directly benefited citizens and contributed to long-term prosperity, easing uncertainty over the future of over 1,300 workers of the company.
The statement available to the Daily Graphic indicated that the government’s decision was based on solid, empirically supported grounds.
“This decision aligns with the government’s policy shift away from the neo-colonial practice of automatic licence renewals for mining in Ghana, focusing instead on a comprehensive reassessment of mining licences to maximise national benefit,” the statement said.
The statement gave an assurance that in spite of the government’s control of the concession, it remained committed to maintaining uninterrupted operations, protecting jobs, and honouring existing valid service contracts while ensuring compliance with legal and fiscal obligations to secure Ghana’s rightful benefits from this vital resource.
Continuity
The government, the statement said, had outlined plans to ensure that all essential services — from security to health care and fuel supply to camp management — continued without disruption.
It also stated that valid contracts would be honoured, wages paid, and operations sustained as efforts were made to regularise arrangements under state stewardship.
The statement further clarified that priority would be given to local workforce retention and community-based enterprises in line with Ghana’s Local Content Policy.
This transition, it said, would focus on local hiring and procurement, ensuring that opportunities in transport, labour and auxiliary services primarily benefited businesses within the Damang catchment area.
A dedicated transition team would also engage directly with all workers, contractors, and community leaders in the coming days to address concerns, provide updates and collaborate on the way forward, it emphasised.
“The Government of Ghana is committed to enforcing strict protocols to ensure safety, orderly operations, and protection of all assets. Unauthorised access or disruptions will not be tolerated.
Together, we will uphold the integrity of this transition,” the statement added.
Reasons
The statement cited several reasons for not renewing the licence, indicating that Abosso Goldfields Limited failed to declare verifiable mineral reserves in its renewal application.
According to Regulation 189 of the Minerals and Mining Act (Licensing) Regulation, 2012 (L.I. 2176), an application to extend a mining lease must include a comprehensive technical report and a programme of mining operations.
Any such report, the statement said, should detail verifiable mineral reserves, including the quantity of gold discovered and projected extraction to justify the lease extension.
“Without declared reserves, the Minerals Commission cannot recommend the extension of the lease.
It is important to note that the company’s 2024 Annual Reports, published in March 2025 — shortly after the Notice of Rejection was served — have validated the government’s position regarding the absence of reserves necessary to support the lease extension,” the statement said.
Additionally, it said the application submitted by Gold Fields Limited lacked a detailed technical programme outlining past activities over the past 30 years or future plans for the mine.
The statement emphasised that “without this critical information, the government cannot adequately assess the mine’s historical performance or future direction — a fundamental requirement for responsible and informed decision-making”.
Furthermore, the statement pointed out that Gold Fields Limited had not allocated any budget for exploration at the Damang Mine over the past two years, insisting that this lack of investment raised serious concerns about the company’s commitment to sustainable mining practices and the long-term viability of the mine.
Background
Gold Fields Limited is the seventh biggest producer of gold in the world, and has two operational mines in Ghana, namely the Tarkwa Mine, which is operated by Gold Fields Ghana, and the Damang Mine, which is run by Abosso Goldfields Limited.
In 2011, Gold Fields bought out IAMGold’s remaining interest in Damang, and the company now owns a 90 per cent stake, with the Government of Ghana holding the remaining 10 per cent.
According to the 2024 annual report of Gold Fields, no mineral reserves were declared at Damang, which meant there were no defined gold reserves to be mined there.
Actual mining at the mine is said to have stopped in 2023 as the company resorted to processing stockpiles.
In fact, it is stated in the Mineral Resources and Reserves Supplement to the Integrated Annual Report of 2023 that no exploration was proposed for the Damang Mine in 2024.
No reserves
The lack of reserves and the lack of funds for exploration spending for the Damang Mine appeared to suggest that the company was not interested in expanding mine life for the mine at Damang.
Additionally, the company, this year, intended to continue the processing of stockpiles in line with the life of the mine for at least one year.
The mine has since been considered as one that has not met the requirements and justification for an extension of lease.
Source: Graphic.com.gh
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