ACEP urges government to halt Damang Mine takeover
The Africa Centre for Energy Policy (ACEP) has called on the government to suspend plans to take over operations at the Damang gold mine, advocating instead for a transparent and legally guided resolution to the ongoing dispute with Abosso Goldfields Limited (AGL).
In a statement issued on Thursday, April 17, ACEP’s Executive Director, Benjamin Boakye, urged the government to “exercise restraint, renew dialogue, and pursue a legally guided resolution that protects the interests of both the state and investors.”
The call comes ahead of a planned government takeover of the mine on Friday, 18 April, following its decision not to renew AGL’s mining lease, which is due to expire on 18 April 2025. The decision has sparked concerns about potential disruptions and its broader implications for investor confidence in Ghana’s mining sector.
Boakye warned that abrupt actions without due legal process could result in international litigation, damage Ghana’s reputation, and undermine the rule of law. He added that “a rushed and disputed decision not only risks international litigation and reputational damage, but also undermines investor confidence and the rule of law.”
The Minerals Commission has accused AGL of failing to comply with procedural requirements, specifically by bypassing the Commission and directly engaging the Minister for Lands and Natural Resources over the lease renewal. Deputy Chief Executive Officer of the Commission, Isaac Tandoh, described this as a breach of protocol.
ACEP, however, cautioned against framing the situation as a move towards nationalisation. The statement noted that suggestions from public officials and implications in the Minister’s own remarks have raised such suspicions, further fuelling investor anxiety.
“The government’s approach to this matter should reflect diligence, legal compliance, and a genuine commitment to Ghana’s long-term mineral wealth,” ACEP stated.
The policy think tank is now calling for a reconsideration of the government’s position to avoid potential long-term consequences for the country’s mining industry and international investment prospects.
Read the full statement below
