"Gov’t to assume full oversight and operational control of Damang Mine effective April 19" – Lands Minister

The Government of Ghana will officially take over full oversight and operational control of the Damang Mine from April 19, 2025, following the expiration and non-renewal of Abosso Gold Fields Limited’s (AGL) 30-year mining lease.

Lands and Natural Resources Minister, Emmanuel Armah-Kofi Buah (MP), announced the decision in a strongly-worded statement issued on April 16, explaining that it was grounded in national interest and in accordance with Section 23 of the Minerals and Mining Act, 2006 (Act 703).

According to the Minister, AGL’s application to renew its lease was rejected due to critical deficiencies, including the absence of declared mineral reserves and failure to present a comprehensive technical program or exploration budget over the past two years—contravening Regulation 189 of L.I. 2176.

“The company’s own 2024 Annual Report, published just days after the rejection notice was served, confirmed our position that there are no viable reserves to justify extending the lease,” Hon. Buah stated.

The Damang Mine, a subsidiary of Gold Fields Limited, halted active mining in 2023 and has since been processing stockpiles.

With only a year of life left in the mine, the government says it is taking action to safeguard Ghana’s long-term mineral interests.

Hon. Buah noted that under Article 257(6) of the 1992 Constitution, all mineral resources are vested in the President on behalf of the people of Ghana, granting the state the authority to assume control in such circumstances.

The government has assured stakeholders of a smooth transition, with a dedicated team to oversee the process, engage local workers and leaders, and ensure continuity of contracts and services.

Emphasis will be placed on retaining Ghanaian workers and empowering community-based enterprises.

“This is a new chapter—written with Ghanaian hands for Ghanaian benefit,” the Minister said, adding that the era of automatic license renewals is over as the country reclaims its mineral wealth.

Story by: Joshua Kwabena Smith