Ghana government, Gold Fields reach agreement on Damang mine transition
The government and Gold Fields Ghana Limited have finalised the agreement on transitional arrangements for the Damang Mine to ensure its operations and job security while paving the way for eventual Ghanaian ownership.
Under the new plan, Gold Fields’ subsidiary, Abosso Goldfields Limited, will be granted a 12-month mining lease for Damang, subject to parliamentary ratification in May 2025.
During this period, Gold Fields will resume open-pit mining while conducting feasibility studies to assess the mine’s reserves and long-term viability.
A joint management team, made up of representatives from the government and Gold Fields, will oversee the processing of existing stockpiles and ensure a smooth transition.
Both parties have committed to working in good faith to secure a successful handover of a sustainable mine to Ghanaian control.
The agreement also sets the stage for discussions on the renewal of Goldfields’ lease for the Tarkwa Mine, which expires in 2027.
The government and Gold Fields reaffirmed their commitment to strengthening Ghana’s mining sector as an attractive destination for investment.
A statement by Spokesperson to the President and Minister for Government Communications, Felix Kwakye Ofosu, described the deal as a win-win for Ghana’s economy and mining communities.
Background
The government recently announced that it had assumed operational control of the Damang Mine, a concession held by Abosso Goldfields Limited, a subsidiary of Gold Fields Limited.
The move followed 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 Goldfields Limited’s 30-year lease is said to have expired on 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.
Rationale
The statement made 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.
