Accra: 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.
According to Ghana News Agency, a statement issued by the Public Relations Unit of the Ministry of Lands and Natural Resources in Accra highlighted that the Damang Mine’s return to state oversight marked a critical step in Ghana’s economic reset. The decision aligns with the government’s policy shift away from the neo-colonial posturing of automatic renewals of licenses for mining, focusing instead on a thorough re-assessment to ensure optimal national benefit.
The statement emphasized the importance of ensuring that the country’s gold reserves directly benefit citizens and fuel long-term prosperity. The government is seeking value propositions on mineral resource utilization that align with these goals. The decision was made on empirically substantiated grounds, including AGL’s failure to declare mineral reserves.
The Minerals and Mining Act (licensing) Regulation, 2012 (L.I 2176) requires applications to extend a mining lease to include a comprehensive technical report with verifiable mineral reserves. AGL’s failure to provide this information, as evidenced by their 2024 Annual Reports, justified the government’s decision not to extend the lease.
The government also noted the absence of a technical program in Gold Fields’ application, which is necessary for assessing the mine’s historical performance and future plans. Additionally, the lack of budgetary allocation for exploration over the past two years raised concerns about the company’s commitment to sustainable mining practices.
Effective April 19, 2025, the state will assume oversight of the Damang Mine, ensuring uninterrupted operations, job protection, and compliance with legal and fiscal obligations. The government assured that essential services and existing contracts would continue without interruption, with priority given to local workforce retention and community-based enterprises.
A dedicated transition team will engage with workers, contractors, and community leaders to provide updates and collaborate on the way forward, with strict protocols in place to ensure safety and orderly operations. The government emphasized the importance of collective resolve and cooperation from stakeholders during this transition.
The government reaffirmed its commitment to Ghana’s mining legislation and international investment protection agreements, assuring international partners of a stable investment climate. The transition process will be transparent, with regular updates provided to stakeholders.
The government called for unity and trust, expressing confidence that the decisions made today will lead to a brighter, more sustainable future.