The government has taken a decisive step to assume operational control of the Damang Mine of Abosso Gold Fields Limited (AGL) upon the expiration of the 30-year lease due on April 18, 2025.
This followed the unsuccessful renewal application by AGL, a subsidiary of Gold Fields Limited, which had halted active mining in 2023. AGL shifted to stockpile processing in 2024, indicating plans to continue this into 2025, with the remaining Life of Mine estimated by AGL at one year.
“Damang Mine’s return to state oversight marks a critical step in Ghana’s economic reset, ensuring its gold reserves directly benefit citizens and fuel long-term prosperity, “ a statement issued by the Ministry of Lands and Natural Resources in Accra copied to The Ghanaian Times said.
Signed by the sector minister, Emmanuel Armah-Kofi Buah, the statement said the decision aligned 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 reassessment of mining licenses to ensure optimal national benefit. With that said, we are on the lookout for value propositions on the utilisation of our mineral resources that align with the same.
The statement said it was imperative to note that while the government remained steadfast in its commitments, the decision was neither taken arbitrarily nor without due process, rather, it was predicated upon cogent, empirically substantiated grounds.
It stated that 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.
“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.
“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.”
The lack of investment, it noted raised serious concerns about the company’s commitment to sustainable mining practices and the long-term viability of the mine.
“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 April 19, 2025.
To the hardworking employees, contractors, and service providers at Damang, your dedication has been the backbone of this mine, and it will remain indispensable. All essential services—from security to healthcare, fuel supply to camp management—will continue without interruption. Valid contracts will be honoured, wages paid, and operations sustained as we work to regularise arrangements under the State’s stewardship, the statement concluded.
BY TIMES REPORTER
