Government Declines To Renew Goldfields Mining Lease

The Government of Ghana has formally declined to renew the main mining lease for the Damang Gold Mine, operated by Gold Fields Ghana Limited, marking a major policy shift in the country’s approach to managing its mineral resources.

In an official letter addressed to Mr. Joshua Fraser, Chief Executive Officer of Gold Fields Ghana, the government made it clear that the Damang mining lease, which expires on April 18, 2025 will not be extended.

The directive was issued following a meeting on March 25, 2025 and subsequent communication on April 3, 2025.

“The Government of Ghana will not renew the lease after more than two decades of operation,” wrote Emmanuel Armah-Kofi Duah, in a correspondence that reaffirmed the Minerals Commission’s earlier position.

“The decision is in the best interest of the country and its citizens.”

The letter instructed Gold Fields to begin winding down operations immediately, warning that any mining activity beyond April 18, 2025 would be deemed illegal.

The Minerals Commission has been tasked with ensuring government oversight of the Damang site, effective April 19, 2025 under the authority of the Minerals and Mining Licensing Regulation 2013 (LI 2176) and other relevant laws.

Contributing to the issue on Citi FM yesterday, Isaac Andrews Tandoh, Deputy CEO of the Minerals Commission said the move should not be viewed as a setback, but rather as a pivotal moment in Ghana’s stewardship of its mineral wealth.

“For far too long, our nation has watched as immense wealth is drawn from our soil, yet local communities remain underdeveloped and the benefits to the state fall short of what is just and sustainable,” Tandoh said, adding “This moment gives us the chance to reset those dynamics.”

While the Commission did not disclose specific details, it indicated that the mine failed to meet the necessary criteria for the lease to be renewed.

Gold Fields Ghana has not yet issued an official response to the government’s directive. The company has operated the Damang Gold Mine in the Western Region of Ghana since the late 1990s, contributing significantly to national gold output and local employment.

Despite acknowledging the value of its long-standing partnership with Gold Fields, the government emphasized that the decision is part of a broader commitment to secure maximum value from the country’s mineral resources.

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