Damang Mine’s return to state oversight marks critical step in Ghana’s economic reset – Minister

In pursuant to Section 23 of the Minerals and Mining Act, 2006 (Act 703), the Government of Ghana has taken a step to assume operational control of the Damang Mine of Abosso Gold Fields Limited (AGL).

This follows the expiration of the AGL’s 30-year lease due on April 18, 2025, and its unsuccessful application renewal.

In a statement issued by the Public Relations Unit of the Ministry of Lands and Natural Resources, in Accra, on Wednesday, said the Damang Mine’s return to state oversight marked a critical step in Ghana’s economic reset.

“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 re-assessment of mining licenses to ensure optimal national benefit,” the statement said.

The statement said it would ensure that the country’s gold reserves directly benefit the citizens and fuel long-term prosperity.

“We are on the lookout for value propositions on the utilisation of our mineral resources that align with the same.

“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, including failure to Declare Mineral Reserves,” it stated.

“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 programme 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,” the statement explained.

 “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 programme 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,” the statement added.

“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 programme 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,” it added.

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, the statement noted.

The government has, therefore, expressed its commitment to maintaining uninterrupted operations, protecting jobs, and honouring existing valid service contracts while ensuring compliance with legal and fiscal obligations and securing Ghana’s rightful benefits from this critical resource.

The government said all essential services—from security to healthcare, fuel supply to camp management—will continue without interruption.

Also, all valid contracts will be honoured, wages paid, and operations sustained as work to regularise arrangements under the State’s stewardship.

“Priority will be given to local workforce retention and community-based enterprises in line with Ghana’s Local Content Policy. This transition will prioritise local hiring and procurement, ensuring that opportunities in transport, labour, and auxiliary services first benefit businesses within the Damang catchment area,” the statement added.

It said a dedicated transition team would 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 said government was 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,” it added.

Government thus underscored the need for collective resolve, and full cooperation from all stakeholders in this transitional period.

It noted that the next chapter of the Damang Mine would be written with Ghanaian hands for Ghanaian benefit—guided by fairness, innovation, and unyielding commitment to national progress.

Noting that all actions shall comply with Ghana’s mining legislation and international investment protection agreements.

“To our International Partners, 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,” it assured.

The government has called for unity and trust in the transition process, noting that it would 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,” the statement noted.

Source: GNA

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