No worker at Damang Mine will be sacked as government takes over operations

The Government of Ghana, through the Ministry of Lands and Natural Resources and the Minerals Commission, will officially assume operational control of the Damang Mine, previously managed by Abosso Gold Fields Limited (AGL), effective 19 April 2025.

This follows the expiration of AGL’s 30-year mining lease and its unsuccessful bid for renewal.

The takeover is being carried out in accordance with Section 23 of the Minerals and Mining Act, 2006 (Act 703) and marks a significant shift in Ghana’s natural resource management approach—prioritizing national benefit and transparency over automatic lease renewals.

This follows the unsuccessful renewal application by AGL, a subsidiary of Gold Fields Limited, which had halted active mining in 2023. AGL shifted to stockpile processing in 2024, indicating plans to continue this into 2025, with the remaining Life of Mine estimated by AGL at one year.

According to a press release issued by the Minister of Lands and Natural Resources, Armah Kofi Buah, “The Damang Mine’s return to state oversight marks a critical step in Ghana’s economic reset, ensuring its gold reserves directly benefit citizens and fuel long-term prosperity.”

It added that, “This decision aligns with Government’s policy shift away from the neo-colonial posturing of automatic renewals of licenses for mining in Ghana, focusing instead on a thorough reassessment of mining licenses to ensure optimal national benefit. With that said, we are on the lookout for value propositions on the utilization of our mineral resources that align with the same.”

Mr Buah said, “It is imperative to note that while the government remains steadfast in its commitments, this decision was neither taken arbitrarily nor without due process. Rather, it was predicated upon cogent, empirically substantiated grounds, which include;

• Failure to Declare Mineral Reserves: AGL 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, among others, must include a comprehensive technical report and a program of mining operations. Any such report should have verifiable mineral reserves indicating for example how many ounces of gold have been found and how much would be mined to justify the extension. Without a declared reserve, the Minerals Commission can’t recommend the extension of the lease. It is instructive to note that the company’s 2024 Annual Reports which were published in March 2025 which is about a week after the Notice of Rejection was served on the Company, has vindicated the Government’s position of the absence of reserves to support the extension of the lease.

• Absence of a Technical Program: The application submitted by Gold Fields lacked a detailed technical program outlining past activities over the 30 years or future plans for the mine. Without this critical information, Government cannot properly assess the mine’s historical performance or proposed direction — a fundamental requirement for responsible and informed decision-making.

• Lack of Budgetary Allocation for Exploration: Gold Fields has failed to allocate any budget for exploration at Damang over the past two years. In essence, the company was not prepared as required by law to expend resources to conduct exploration activities with the view to discovering new ore bodies or converting the mineral resources into mineral reserves to support a mining program of mining operations. This lack of investment raises serious concerns about the company’s commitment to sustainable mining practices and the long-term viability of the mine.

The press release noted that, “In light of the aforementioned, and in the national interest, under Article 257(6) of the 1992 Constitution, the State shall assume oversight and operational responsibility of the Damang Mine effective 19 April 2025. Fundamental to this decision is the government’s commitment to maintaining uninterrupted operations, protecting jobs, and honoring existing valid service contracts while ensuring compliance with legal and fiscal obligations and securing Ghana’s rightful benefits from this critical resource.”

To achieve the above, Government has outlined the following;

• No Disruption, Only Continuity
To the hardworking employees, contractors, and service providers at Damang, your dedication has been the backbone of this mine, and it will remain indispensable. All essential services—from security to healthcare, fuel supply to camp management—will continue without interruption. Valid contracts will be honored, wages paid, and operations sustained as we work to regularize arrangements under the State’s stewardship.

• Priority for Local Employment & Enterprise
Priority will be given to local workforce retention and community-based enterprises in line with Ghana’s Local Content Policy. This transition will prioritize local hiring and procurement, ensuring that opportunities in transport, labor, and auxiliary services first benefit businesses within the Damang catchment area.

• Transparency & Engagement
A dedicated transition team will engage directly with all workers, contractors, and community leaders in the coming days to address concerns, provide updates, and collaborate on the way forward. Your voices matter, and this process will be guided by openness and the Rule Of Law.

• Security & Stability Assured
The Government of Ghana is committed to enforcing strict protocols to ensure safety, orderly operations, and the protection of all assets. Unauthorized access or disruptions will not be tolerated. Together, we will uphold the integrity of this transition.

• Reassurance & Patriotism
This is a moment of collective resolve, and we expect full cooperation from all stakeholders in this transitional period. The next chapter of the Damang Mine will be written with Ghanaian hands for Ghanaian benefit—guided by fairness, innovation, and our unyielding commitment to national progress. All actions shall comply with Ghana’s mining legislation and international investment protection agreements.

The Lands Minister assured Ghana’s International Partners that, “Ghana remains a beacon of responsible investment and stability. While we remain open to continuous collaboration and support for foreign investors, we are clear on the need to balance all interests and priorities with the long-term needs of our people. You can be assured of Ghana’s friendly and welcoming investment climate.

“We call for unity and trust in this process. The transition will be executed transparently, with a dedicated team engaging stakeholders to ensure stability. We will continue to provide regular updates as we journey along on this new path, confident that today’s decisions will yield a brighter, more sustainable tomorrow,” he added.

The post No worker at Damang Mine will be sacked as government takes over operations first appeared on 3News.

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